INSUBCONTINENT EXCLUSIVE:
sticking point for the domestic stock markets at this points and a delayed monsoon and sharp rise in oil prices is further weighing on the
investors.Sensex and Nifty have failed to sustain the key levels of 40,000 and 12,000, respectively after breaching them post the conclusion
of the general elections, primarily owing to concerns over slowdown."All eyes are on the Union Budget
A reformist budget with big plans for growth is what markets are looking for," Mayuresh Joshi of Angel Broking stressed.For the market to
really move up, it needs a mix of local and global triggers that are supportive, he added.With the prevailing conditions, all eyes are on
the Budget to be tabled on July 5, to announce measures to revive growth.Among the key points of concerns for the financial market, analysts
noted, were the ongoing trade dispute, spike in global oil prices and shortage of liquidity in the market.Brent crude, the global oil
benchmark rose sharply on Thursday after war like situation developed between Iran and the US after Iran shot down a US drone.US President
Donald Trump on Friday said he was in "no hurry" to retaliate
He warned that the "we were cocked and loaded to retaliate last night" but chose otherwise as its was "not proportionate to shooting down an
unmanned drone".Global financial markets fell over fear that a possible conflict would disrupt flows from the Middle East, which accounts
for over 20 per cent of the world's oil output.Mr Joshi added that the NBFC crisis has the potential to become a major roadblock for the
"It is essential to draw a line between liquidity and solvency and help out the solvent NBFC get adequate liquidity," he said.Another major
concern has been the consumption slowdown, largely owing to the distress in the rural sector
The sectors require all the more attention in light of the prevalent drought like situations in several states.Besides, near stagnant wage
growth levels and signs of sluggish progress of monsoon is another point of worry."Domestic tractor sales growth, often regarded as the
major gauge to track rural economy, has been contracting for the past four months, as compared to high double digit growth seen in late 2018
However, the contraction has widened to 16 per cent YoY in May as compared to 13.2 per cent YoY in the previous month," Centrum report
added."Modi 2.0 needs new modified MNREGA type schemes to boost the Rural economy and pump up the consumption as earliest as possible
Attempt to achieve fiscal deficit target will deepen the crisis in Investment scene for the long term," said Romesh Tiwari, head of
research, CapitalAim.However, the only silver lining for the markets came on Thursday when the US Federal Reserve indicated a rate cut in
Sensex jumped 489 points higher in response to the Fed comments.Central Bank actions across the globe pointing to a dovish stance and
expectations of rate cuts by the Federal Reserve might boost the inflow of Foreign Institutional Investment.
