We have to be prepared for increased level of volatility across the financial markets. Oil is again on its downturn , equity markets are crumbling and forex market is looking vulnerable. The four most important factors for the market in the near terms are :
1) Fed interest rate hike
2) China : extent of the slowdown
3) The situation in Greece in particular and EU in general
4) Commodity prices mainly Oil and its impact on the MEA economies.
For India apart from the global factors we need to watch for the following :
1) Pace of reforms
2) Interest rate reduction
3) Growing NPA levels of the banks
Rupee as stated before may weaken to 68/69 levels .
What will be your strategy to gain from this increased volatility ?