The Bond markets are leading the currency on to 55.95 in the August series, markets smelling a mid correction 56 level for the USD Rupee. Market commentators are well p[laced to finally get away with just platitudes and big canvas statements which the government cannot get away wihth as Infra needs a lot of attention and agri may dip below swhile subsidies stay latched on.
The continuation of the forthright refusal from RBI did not have any other alternatives open but the markets continue to treat post policy market commentary like the holy grail as most of the good results of the last to three weeks are now forgotten and the GDP data coming next will not be very rosy and the rosy PMI not get much audience esp as EEFC credit has been restored for Exporters wanting to go long on the Dollar , the Central Bank assuming here that the satta pressure on the Rupee has gone away. Stanchart reports tomorrow with double digit growth in Asia from Non In dia territories including Malaysia and China and even Hongkong as Rupee fall and decreasing Wealthmanagement income in India will be highlighted.
Deccan Chronicle is seeing a winding up petition from IFCI itself facing a virtual winding up petition and staying on despite negative real net worth. Recovery income is likely to fatten income of surviving PSU banks esp those reporting Monday but one wonders if IOB and Syndicate can really compete with even Corporation Bank let alone BOB and Allahabad Bank that produced 20% profit growth yesterday