Indian equity market was volatile on Friday before closing on a flat note. After a continuous sharp cut for the last three consecutive sessions, the market consoildated today indicating that almost all negatives have been factored in atleast for the time being. Along with the US and Europe, Indian market too is eyeing the US debt plan.
The 30-share BSE Sensex closed almost flat at 18,197.20, falling just 12.32 points. The index had shed 661 points in previous three sessions on the back of more-than-expected hike of 50 basis points in key rates by RBI to tame inflation coupled with uncertainty over US debt deal.
Mark Mobius, Executive Chairman of Templeton Emerging Markets is less bullish on India among its peers. "The problem is mainly the valuations which are rather high," he pointed out.
Criticising RBI move to hike rates Mobius said, "The unfortunate thing is higher interest rates don't necessarily mean that you have tackled inflation. Inflation is tackled by high productivity and the way you get it by having a more efficient administration," he said.
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