The Rupee had a strange outing yesterday but given the state of the Economy as delivered by the RBI’s quarterly Economic and monetary review and the non event credit policy around 11 AM, the currency markets may still start off the equity recovery on the wrong note in the pre open moments from now.
It is likely however that the Rupee test the Dollar fully today and retraces to as close to 54 levels between today and tomorrow before more deleterious impact of the flip side stroy playing on from mid 2010 works its way into an increasing hit from resurgent crude and an “unattended CAD” as the markets seem to be alleging after the changes at the top and our new President taking oath.
However, select bank stocks that reported near expiry apart, the Banknifty has recovered from its bluesy year despite cannonical references from the new look S&P trying to stay afloat with proactiveness in ratings not discernably different from petty bickering and rumormongering wihthj politicos and marketmakers from Europe to Americas to good old India it has reveled in ignoring. the refreeing against SS comes to mind? I would not hazard a guess but I think the media will like to pursue the connotations at leisure than make an issue of it.
The stocks are steady far and wide but i have hardly a mile before I go skinny dipping again as markets buoyant indeed look to retrace from 5250 or 5300 levels having corrected mispricing in banks and having allowed a mild infra recovery.
However, globally only great business models and arbitrageurs are recovering earnings forecasts and now most of the good ones are done in India also. HSBC was a good result hammered for the fines facing the indutry but likely to be soon rewarded for its double digit RoE for example, Indian scrips like ICICIBANK and IDFC following.
Cipla results come in today. BOB apparently (BofA ML ) had good reason for reporting squeezed up profits this quarter and is good to go. It could have been a good day kind ofvibe in the morning or afternoon could really spoil it, huh!