Economy Mar 28, 2012
Hong Kong: Global equity markets are in retreat this morning, after weak consumer data out of the US and a late-afternoon selloff dragged down indices on Wall Street.
The Indian market may have dodged a bullet yesterday after Finance Minister Pranab Mukherjee held out reassurances that there would be no blanket taxation of Participatory Notes, but this morning, negative sentiment is weighing in at the start.
As at 7.30 am IST, most of the indices across the Asia-Pacific region are down uniformly by around 1 percent. The only exception is Sydney, where which is up about one half of 1 percent. No particular reason other than that the overnight cues from Wall Street were decidedly weak.
All three major indices on Wall Street finished down after a last-hour selloff triggered by weak consumer data and generally lacklustre sentiment out of Europe.
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In line with regional trends, Nifty futures are down about a third of 1 percent this morning.
FII interest in the Indian market is down from the elevated levels of early this year. Much of this owes to a growing disenchantment with the Indian story. And although the markets appears to have been calmed by the Finance Minister's clarification on P-Notes, it's symbolic of the uncertainties that abound.
For this morning, we'll likely see a weak start to the trading day.
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