India Morning Report: Markets staying the course as US responds to GDP

US Markets reaffirmed their commitment to stronger equity markets going north from here as the Fed noted inflation concerns on its latest FoMC release. Of course US is worried about falling for the stagflation/deflation trap before withdrawing excess liquidity, while Global markets having been awash in that liquidity without it reaching industry, reacted by exiting US Bond investments in a hurry.

The Indian impact due to Oil and FX is still unfolding and today the Rupee made further inroads from the 61 levels of yesterday while Oil might remain low priced for times to come because of the ‘disturbing’ innovations entering higher shipments of the same into the high seas from the erstwhile importing only US oil industry.

The difference between Brent and WTi has vanished too and thus crude mechanics may not be able to force the desired course esp for the global economy if India can withstand the onslaught for a few more months and in fact strengthen from here.

July auto sales are down 21% for M&M including exports, as are two wheeler sales with the deep cuts across the industry but an improvement over June as Bajaj Auto remains above 300,000 motorcycles for the monthand honda would have gained the continuing depletions in Hero Moto that has moved down to 490,000

BOB NIMs have come at 2.4% and the ain is not going away for time to come.  The indices at 5750 have again exchanged productive businesses to the downside correction bringing back supernary outsourcing valuations with HCL counting its frst inr 250 Bln score in revenues across the full year.

Banks are a great trade and investment as 5750 holds and though traders that finally saw the rush from shorts in the green may not be able to start new shorts from the weekend trades Friday before great Volumes return in the next weeks. As mentioned yesterday FIIs are already covering index shorts on the hedges.

The Goldman Sachs downgrade does not match its own long term review of the currency pinnin g65 to 2016, a fairly bullish evaluation and investors would continue to bit at these levels strengthening their exposure askets to india which have remained underweighted probably related to finer point correlations and larger unlisted opportunities available in east Asia and others including Mongolia and turkey that must return to normal eigen values after the beat down because of political rushes showing up governance in a bad light

 

Comments are closed.

Up ↑

%d bloggers like this: