Markets have not gone nose up on news and thus are unlikely to go belly up by next week. As unexpected as it was and as fruitless it might be the sectoral runs in Aviation and Broadcast channels have been well left alone, the improvement in FDI regime resulting in gains of 3% (JET) to 12% (SPICEJET) in aviationa nd 3% Broadcast Cable companies. Sensex is up 100 points.
Holders will gain and it is not really time for fresh buying. The commodities cycles are quite done in the big run up of last month according to us but shorts dio not have a clear run in silver or Copper or even ANtural Gas. Crude should go higher but not ithout a not so shallow correction. The Euro at 1.30 is pointing to a bottom for the Dollar being very nearby though some European investors have again taken Euro into their fold, saving it to 1.36-39 by the year end (HSBC)
The policy data comes out in a n hour
- Reform Friday. PM introduces bold new policies for aviation, retail (ndtv.com)
- Sensex jumps 400 points, Nifty hits 5550 on QE3, reform hopes (profit.ndtv.com)
- Cabinet relaxes FDI norms for aviation, opens doors to foreign carriers (profit.ndtv.com)
- SpiceJet in talks with a Gulf airline (thehindu.com)