morning thoughts...
The markets traded extremely volatile and hovered around the crucial levels of 8500 levels on nifty front.
Technically the markets can witness some more pressure in coming session untill 8450 levels.
However markets are on
cushion levels and see a bounce from those levels giving oppurtunity for out of
money options.
Tax claim on FIIs
pertaining to prior years is hurting sentiment even as FIIs are seeking a
retrospective exemption from the government. The government has made it clear
that retrospective exemptions cannot be provided. A report by CLSA pointed out
that if higher courts uphold the claims of the income tax authority, it will
create operational chaos for FIIs as they will need to determine who will foot
the tax bill.Crude oil prices are on the rise yet again, rising over 15 per
cent since April 8. The Indian crude basket stands at $ 61 per barrel, the
highest since December 12, 2014. Let us not forget that crude has been a saving
grace for India and has helped us to contain the twin challenges — the fiscal
and the economy
Both domestic and international events play havoc on investor sentiment even though India’s economic current account deficit. Analysts feel things would be comfortable if crude remains below $70 per barrel, but not after.Earnings this season are expected to be muted and that is visible from the numbers so far, though the saving grace for the companies has been falling commodity prices. High interest costs and huge debt of Indian companies has been eroding margins. Mounting NPAs of the banks remain a big concern.Global market sentiment has turned shaky over the Greece debt issue cropping yet again. There are concerns that Greece might default on its debt repayment and rumours on the country’s exit from the Euro zone. Analysts believe that if it happens, the short term impact could be quite severe.The People's Bank of China lowered the reserve requirement ratio (RRR) for all banks by 100 basis points to 18.5 per cent effective April 20. This cut has been the deepest since the global crises in 2008 and much more than what was expected. The central bank is doing whatever it can to ward off a sharp slowdown in the economy. China is a major trade partner for India and our exports to the country declined 22 per cent in March, raising concerns over a widening trade deficit. Import numbers too indicate that our manufacturing sector is far from a recovery.
Both domestic and international events play havoc on investor sentiment even though India’s economic current account deficit. Analysts feel things would be comfortable if crude remains below $70 per barrel, but not after.Earnings this season are expected to be muted and that is visible from the numbers so far, though the saving grace for the companies has been falling commodity prices. High interest costs and huge debt of Indian companies has been eroding margins. Mounting NPAs of the banks remain a big concern.Global market sentiment has turned shaky over the Greece debt issue cropping yet again. There are concerns that Greece might default on its debt repayment and rumours on the country’s exit from the Euro zone. Analysts believe that if it happens, the short term impact could be quite severe.The People's Bank of China lowered the reserve requirement ratio (RRR) for all banks by 100 basis points to 18.5 per cent effective April 20. This cut has been the deepest since the global crises in 2008 and much more than what was expected. The central bank is doing whatever it can to ward off a sharp slowdown in the economy. China is a major trade partner for India and our exports to the country declined 22 per cent in March, raising concerns over a widening trade deficit. Import numbers too indicate that our manufacturing sector is far from a recovery.
Coming to the commodity markets bullions , base metals are
likely to remain weak with buying in energy.
We wish you all a very happy akshya tritya
Tuesday wealth gains
Buy nifty and bank nifty on dips
Jackpot buy sun pharma 980 pa
Buy hdil , upl
Sell lupin , dlf
Buy maruti 3500 pa , tata steel 350 ca
