Thursday, September 13, 2012

Federal QE3 Announcement Expected Tonight!

The indices of the Indian bourses are trending up consecutively, though moderately. This upbeat sentiment has been witnessed ever since the announcement by European Central Bank on the unlimited sovereign bond buying decision, and the German Constitutional Court's nod y for the same. Another trigger is underway. Market experts feel that during the two-day meeting of the U.S. Federal Open Market Committee (FOMC), a third round of quantitative easing (QE3) may be announced.

Such a measure would indeed boost market sentiments and the figures of the Indian indices may go up further. It is but a fact that these are temporary triggers which do not last long. Scams, lack of policy-making and implementation, inflation, price hikes, etc. are the key depressants of the volatile Indian market. At least announcement of QE3 may shoot nifty up closer to 5550-5600 levels. ‘Short term gain for a long term pain’ – the statement well describes the QE3 state of affairs!

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