Japan's northeast coast was struck by the biggest earthquake in 140 years on Friday, March 11, triggering a 10-metre tsunami that swept away everything in its path. The Japanese markets crashed on Monday morning causing global market unrest.
As the earth wobbled on its axis, the Indian indices too were shaken. The Sensex closed 150 points lower, while the Nifty shed 0.9% and ended below the 5500 mark on Friday.
Most oil market company and banking stocks slid on account of the Tsunami in Japan.
The Indian markets have already been plagued with high oil prices, surging inflation figures and scams. The markets, however, seem fairly resilient and are unlikely to see a major sell-off and may hold on to the 5400 mark.
This week, the market will also keenly watch out for the monetary policy announcements by the Reserve Bank of India (RBI), on March 17. The central may have to hike interest rates further in order to tame inflation. The street too expects a rate hike but most people do not expect banks to translate the hike in key policy rate into interest and deposit rate hikes.