Pretty much everybody expects a recession, but with most people still forecasting a fairly mild recession, investors are keeping their fingers on the pulse of the economy. Stocks had posted gains in the previous week, after the near collapse. But with investors now looking ahead to the end of the first quarter on Monday, money managers are scrambling to ditch under-performing stocks to buy better performing issues in order to embellish portfolios. Shaken by the biggest credit crisis in decades, the market put in a dismal performance for the first quarter to date.
Since the start of the year so far, the Nifty has lost 1223 pointsWith the start of a new month next week, investors will also start looking toward the first-quarter earnings season, and be on alert for possible profit warnings from companies struggling with the impact of the credit crisis and a slumping economy. Warnings are coming across many sectors and unless earnings come in better, we'll continue to see selling into the uptrends.