We live in a global village , no where else it is so apparent as the financial markets .
China's dollar-denominated imports fell 20.4 % in September , this is 11 consecutive month of decline. Exports fell 3.7 % from a year earlier.
This lead to a sell off across markets . With more such negative news coming from China , we can expect further sell off in risk assets.
Indian equity market came off in line with the other emerging markets. Infosys results was better than expected , however their CFO resigned which dampened the mood on that counter. TCS results has been muted and has misses expectations .
A trading idea for the medium term : Short TCS and Long Infosys . As the PE gap closes between the two companies this combination can make money .
In the short term we can expect a sell off in IT counters with a few exceptions.