Amid slowing growth and low interest rates, investors will need to focus on stock-picking, suggests John Remmert.
The S&P BSE Sensex ended down 371 points at 24,966 and the Nifty50 closed 101 points lower at 7,615.
The market breadth ended weak on the BSE with 2,086 shares declining and 893 shares advancing.
A stable dollar will at minimum reduce incremental cross-currency pain for Indian cos.
Analysts agree China, Greece and US Fed developments need careful monitoring but India should gain, over time, from relative rise of the dollar and fall in commodity prices.
Weaker-than-expected growth in US jobs in recent months had already forced US central bankers to put off a rate hike at their meeting last week
Indian indices have hit all-time highs in the New Year and the sentiment remains strong. All valuations are also at extremely high levels, cautions Devangshu Datta
The trend was visible in the early trade on Thursday as investors indulged in trimming their bets after the minutes of the US Federal Reserve's September meeting indicated a possible rate hike this year.
Banks led the decline with Nifty Bank and BSE Bank index dropping over 3% each.
'I am not optimistic about the global economy for the next couple of years.'
S&P BSE Midcap shed 0.8% while S&P BSE Smallcap tumbled 0.6%
The market could be influenced by events elsewhere in the world and regardless of what happens to India's economy
Earnings growth is expected to accelerate as lingering toxic effects of note ban ease off and GST settles down. However, stock valuations are high and that means market is also overdue for correction, says Devangshu Datta.
'The recent US jobs report has eased fears of a hike in the Fed meeting.'
A total of 183 stocks rallied 10 per cent, of which 32 stocks saw price appreciation of 20 per cent each.
The world seems to have caught severe pneumonia, or worse, as China had flu.
Optimism about a stable govt at the Centre, a demand revival and falling oil prices buoyed the markets.
The BSE Sensex spurted 130.00 points to end at 35,980.93, while the broader NSE Nifty advanced 30.35 points to 10,802.15.
Gold has pushed lower as a result of Chinese selling.
'We think FY18 will end with a 10 to 12 per cent earnings growth, but FY19 will see a recovery to over 15 per cent.'
At 11:37 am, the S&P BSE Sensex was up 28 points at 27,037 and the Nifty50 was up 2 points at 8,268
Sectors such as Auto, Banks, Capital Goods, FMCG, Metal, Oil & Gas and Power are trading marginally lower.
The optimism in global markets could help India as the rebound in GDP is expected to continue and get more broad-based.
Indices reversed all its losses during late trades.
Markets end higher ahead of Fed outcome, China stimulus
The Nifty had hit its third successive record high of 7,922.70 today.
Determining the direction of the dollar in Trump's America will be more critical for asset allocation than getting your call on interest rates right, says Akash Prakash.
Analysts expect global markets to remain in consolidation mode with a negative bias over the next six months.
Pharma shares extended losses after the government's ban on combination drugs.
Capital flows have become much more skittish and volatile during this period, with short-term horizons dominating allocations.
'Experts are not ruling out further pain as global factors cannot insulate India from the aftermath.'
Sensex is under pressure due to concerns in the global market.
Some type of global shock adds to the allure of the dollar.
And why markets could give up 25 per cent of all these gains made since March 2020
IMF members will also be examining whether China's heavy intervention in the yuan market was befitting of a freely convertible reserve currency
'The macro-economic stresses -- high interest rates, rupee depreciation and capital flows -- have receded now.' 'Interest rates have come down, inflation is down and the rupee has bounced back.' 'If oil prices continue at this level, there will be no vulnerability.' 'Growth is a different story.'
Experts said equity raising was also hampered due to flight of capital from foreign investors. FIIs have sold more $500 million (Rs 3,200 crore) in October.
Despite the rally, on the basis of valuations, Indian markets aren't too expensive, says Christopher Wood, managing director and equity strategist at CLSA.
Investors attribute some of the growth in Indian stocks, that saw Bombay's benchmark BSE index rise nearly a third in 2014, to the election of a pro-business government in May, under Prime Minister Narendra Modi.
'We want to make sure we stay in India and we have very high hopes from India,' says Mark Mobius.
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