OUTLOOK
Yesterday markets closed down consecutively for straight second session as fears of slowdown in global growth punctured investor confidence with continuing political instability on domestic front and other macro concerns which seem to have no respite for the downtrend of the markets and investor sentiments.
Global sell-off post European and US debt crisis weighed on the market. Foreign funds have sold $1.85bn in local shares so far in August after purchasing $ 1.7bn of equities in July.
Also the data shows released by RBI yesterday that India's household savings which have been the growth trigger for last few years have dropped below 10% of the GDP for the first time in 13 years as soaring inflation has eaten up the disposable incomes. The rate dipped to 9.7% of GDP in FY11 as compared with 12.1% a year ago. This hints at slowing down of investment cycle which is bad for any economy.
On global front today in the evening we also await the statements from the Fed chairman Ben Bernake on any positive signs regarding any fresh steps to be taken to bolster the economy. These events may keep the volatility in the markets.
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