As far as India is concerned, apart from domestic factors, the negatives stemming from worries in global markets have also been factored in.
Key Indian indices were expected to trade in a broad range over the next few weeks, Sandesh Kirkire, CEO, Kotak Mutual Fund said in a recent report on a view on markets in October.
"We may be witnessing a contraction in the global risk appetite leading to a board decline in major asset classes," he said.
This could be attributed to a slowdown in consumer spending in the US and high rates of unemployment. Also, in Europe, the sovereign debt crisis ailing the PIIGS nations, and the onset of the severe austerity cuts needed to resolve that issue have been a major cause of concern for the global economy.
As far as India is concerned, apart from domestic factors, the negatives stemming from worries in global markets have also been factored in, the report said.
Interest rate concerns were expected to alleviate in the coming months on the back of a good monsoon which would lead to an enhanced crop output and thereby lower agri-commodity prices. Also, the besetting slowdown in the US, Europe, and China may help alleviate the international crude oil prices in the coming months, the report stated.
"For now, the trading sentiment in the equities market remain sensitive to global market volatility, and would continue to follow the unfolding events in Europe closely," said Kirkire.
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