Monsoon woes may take the market down

No matter how confidently the agriculture minister or the ‘Mausam Bhavan’ mandarins may have denied the possibilities of drought, the reality is finally staring in the face and Dalal Street was not waiting for a formal certificate from the Government, which may not come before September. Yesterday’s sharp sell off was just a gentle reminder that it is changing gears. Its now headed south.

The world markets are waiting for the July non-farm pay roll numbers, where 2,75,000 job losses are seen. This will be the 19th consecutive month of job losses with the unemployment at 9.7%, the highest in a quarter century. Even if the actual number is less, there is a likelihood that going forward job losses could rise if Challenger, Gray and Christmas’s expectations of further job losses are anything to go by. Continue booking profits and losses, as the case may be, in long trading positions. Agri-commodity based stocks could do well.