morning thoughts...
The markets yet again behaved in the pattern illustrated and the 5 planetary transit with sun in taurus gave the deceptions and confusions.
Technically the markets are in same state and will swing like a pendulum on both sides giving oppurtunities to both long and short tarders.
However , one needs to be cautious with stoplosses as movements will be quick
One of the biggest factors that have led to the correction in stock markets is disappointing earnings reported by India Inc. Does a poor performance suggest that an economic recovery is not underway? Or is that the profit cycle of India Inc. lags growth in the economy?
This was the year when the Indian economy had started growing once again and subsequently contributed to the phenomenal rise in the stock markets. But to understand why this happened, one will have to look at the evidence in the years prior to 2003. The RBI had undertaken strict monetary tightening measures after 1996. This brought down inflation considerably. Indeed, consumer price inflation came all the way down to zero by the end of 1999, despite a recovery in global oil prices. This gave enough headroom to the then RBI governor to cut interest rates.
The rate cuts obviously benefitted India Inc immensely and lowered their borrowing costs. Thus, the key to the boom after 2003 was largely attributed to low inflation in prior years. That is not all. India Inc had also gone in for a lot of restructuring that resulted in better efficiencies and higher return ratios. The government then had also been pushing ahead with reforms.
Coming to the commodity markets bullions still remain in positive trend with energy and base metals
Thursday wealth gains
Buy Upl 520 ca
Buy icici bank , axis bank , hdil
Buy jindal steel 140 ca
Buy nifty and bank nifty on dips
Buy gold , silver , crude
Sell copper , nickel
The markets yet again behaved in the pattern illustrated and the 5 planetary transit with sun in taurus gave the deceptions and confusions.
Technically the markets are in same state and will swing like a pendulum on both sides giving oppurtunities to both long and short tarders.
However , one needs to be cautious with stoplosses as movements will be quick
One of the biggest factors that have led to the correction in stock markets is disappointing earnings reported by India Inc. Does a poor performance suggest that an economic recovery is not underway? Or is that the profit cycle of India Inc. lags growth in the economy?
This was the year when the Indian economy had started growing once again and subsequently contributed to the phenomenal rise in the stock markets. But to understand why this happened, one will have to look at the evidence in the years prior to 2003. The RBI had undertaken strict monetary tightening measures after 1996. This brought down inflation considerably. Indeed, consumer price inflation came all the way down to zero by the end of 1999, despite a recovery in global oil prices. This gave enough headroom to the then RBI governor to cut interest rates.
The rate cuts obviously benefitted India Inc immensely and lowered their borrowing costs. Thus, the key to the boom after 2003 was largely attributed to low inflation in prior years. That is not all. India Inc had also gone in for a lot of restructuring that resulted in better efficiencies and higher return ratios. The government then had also been pushing ahead with reforms.
Coming to the commodity markets bullions still remain in positive trend with energy and base metals
Thursday wealth gains
Buy Upl 520 ca
Buy icici bank , axis bank , hdil
Buy jindal steel 140 ca
Buy nifty and bank nifty on dips
Buy gold , silver , crude
Sell copper , nickel
