morning thoughts...
The markets gave the desired upmove in the last week and the coming session is likely to witness more gains.
Now, while India has a whole 'to do' list in order to make the economic buoyancy a real one, China it seems, is content printing money. As we told you earlier, central banks, not just in the US and Eurozone, but also in Japan and China are unlikely to mend their ways soon. In fact the central bank of China has recently announced a loan of 50 bn yuan (US$ 8.1 billion) to banks at discounted rates. The banks are supposed to re-lend the money to farmers and small businesses. As we know, the multiple rounds of QE in the US, which were also designed to lend to corporates, never ended up boosting growth. Nor did they create jobs. And there is every possibility that the excess money with banks never gets borrowed by consumers and corporates. But in the process ends up creating more asset bubbles. China's full-year growth in 2014 is expected to miss the government's 7.5% target. And that would mark the country's worst economic performance in 24 years. Thus as the government of China and its central bank get desperate to save the economy from a vicious cycle of low growth, more money printing cannot be ruled out.
So investors need to remain cautious about the excess cheap liquidity finding its way into India too!
www.astroeyes.blogspot.in
Stocks to watch
Karnataka bank 150 ca , idfc 170 ca
FII Buy Sparc
Buy Axis bank , pfc , rec
Buy nifty and bank nifty
The markets gave the desired upmove in the last week and the coming session is likely to witness more gains.
Now, while India has a whole 'to do' list in order to make the economic buoyancy a real one, China it seems, is content printing money. As we told you earlier, central banks, not just in the US and Eurozone, but also in Japan and China are unlikely to mend their ways soon. In fact the central bank of China has recently announced a loan of 50 bn yuan (US$ 8.1 billion) to banks at discounted rates. The banks are supposed to re-lend the money to farmers and small businesses. As we know, the multiple rounds of QE in the US, which were also designed to lend to corporates, never ended up boosting growth. Nor did they create jobs. And there is every possibility that the excess money with banks never gets borrowed by consumers and corporates. But in the process ends up creating more asset bubbles. China's full-year growth in 2014 is expected to miss the government's 7.5% target. And that would mark the country's worst economic performance in 24 years. Thus as the government of China and its central bank get desperate to save the economy from a vicious cycle of low growth, more money printing cannot be ruled out.
So investors need to remain cautious about the excess cheap liquidity finding its way into India too!
www.astroeyes.blogspot.in
Stocks to watch
Karnataka bank 150 ca , idfc 170 ca
FII Buy Sparc
Buy Axis bank , pfc , rec
Buy nifty and bank nifty
