The markers continue its downwards journey with no end in sight . China's foreign reserves are fast depleting . This has cast doubts on the ability of Chinese government to continue its intervention in the market .
China already has excess production capacity built of the past decade. In case of demand slowdown in China companies will be forced to dump their products in the international market .
In order to protect Indian producers and exporters India will have to allow its currency to weaken further .
Thus Indian Rupee looks all set for 68 for now. For FII the falling stock market , and weakening rupee is a double whammy , eroding their returns .
For now for small investors stay in cash and wait for the opportunity will be the right strategy . For those who are already invested it will depend on specific stocks they hold , entry point etc.
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