Sensex closed at 14,725, down 443 points from the previous weekend figure. It lost 370 points on the last trading session of the week, Thursday. Securities and Exchange Commission, SEC banned naked short selling on 19 financial stocks saying that “It would protect the normal price discovery process”. As a result US markets didn’t fall as expected. But the guess is the prices will fall again once they are out of ban from short selling.
Wholesale Price Index (WPI) based inflation rose to a 13 year high of 12.44 % for the week ended August 2nd. This time fruit and fuel prices added oil to the burning inflation. The inflation rate is expected to be in double digit for the remaining calendar year as the fiscal measures taken by the Government will yield result only in December.
Spot crude oil price closed around $114 a barrel. It touched recent lows in the previous week. Crude oil’s 23 percent retreat since a July record of $147.27 a barrel along with naked short selling has driven a four-week rebound in U.S. stocks.
Markets are expected to volatile in this week. They may fall, if not a complete collapse at least few hundred points of Sensex. Industrial growth arte is expected to come down for this financial year.
rrel has driven a four-week rebound in U.S. stocks.
Sathish Emmadi
Sathish Emmadi is a co-founder & editor at Lastbull.com. He is presently working in IT for one of the world’s top mutual fund companies. Handled multiple projects in BFSI (Banking,Financial Services and Insurance) domain. An Engineering Graduate from NITW.
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