morning thoughts...
The markets remained highly volatile and is likely to
continue to same pattern in the coming session.
Technically the markets are likely to maintain range between
7850-8050 for few sessions.
Give a man a fish and you feed him for a day; teach a man to
fish and you feed him for a lifetime', or so goes the famous saying. As far as
the administration of the Indian economy is concerned, one word that flies in
the face of this wise saying has been 'subsidies'. That's because the subsidies doled out by the government achieve nothing more than very short lived relief to the
poor. They do not in any way help in raising their status quo in a sustainable
manner. In fact, they often do not even end up reaching the section of society
that they are actually targeted towards
This is despite the fact that the latter, i.e. spending on capital expenditure, is what really helps in taking the economy and its citizens to a higher level.
This is despite the fact that the latter, i.e. spending on capital expenditure, is what really helps in taking the economy and its citizens to a higher level.
However, the good news
is thatafter 7 long years of spending more on subsidies, as per budgeted
estimates this year, the government is likely to spend an equal amount on
creating productive assets during FY16. Further,
if the recent trend of lower subsidies versus capital expenditure continues, it
is likely to give a sustainable fillip to the economy. And commodity prices, if
they remain low, will only further help the economy achieve this goal.
And in what may considered to be the opposite of patience and
prudence, domestic institutional investors (DIIs) seem to be quite an excited
lot these days. As per reports, DIIs poured a net of Rs 157 bn into
stocks in the month of August. This is their highest monthly investment in more
than six years! In fact, the last time they touched a
figure higher than this was as far back as January 2008.
What
makes India resilient to these global headwinds? Here are key reasons...Unlike
some other emerging markets, India's economy is driven largely by domestic
consumption. Exports to China account for only 10% of our total exports.India
does not compete with many Chinese manufactured products in international
trade.The
steep fall in commodity prices, particularly crude oil, is a big positive
for India.More
than half of the emerging as well as frontier economies are in bear market
phase, unlike India.India's
dollar debt is lower than other emerging economies. So, the risks
emanating from the prospective US interest rate hike are limited.At a
time when the global economic engine is struggling for growth, India
appears to be one of the few bright spots.
In
short, India appears well-geared to handle risks emerging from the global
economy. And given that India is in a relatively better position than other
major emerging economies, we may see global fund managers increasing their
exposure to Indian equities.
Yesterday's calls sent
Nifty - buy at cmp 7995 sl 7965 targets 8070 - booked at 8060
Bank nifty - buy at cmp 17135 sl 17065 targets 17500 - booked at 17390
Yes bank 700 ca - buy at cmp 24 sl 21 targets 35 - booked at 34
Lupin 2000 ca - buy at cmp 33 sl 30 targets 50 - booked at 48
Axis bank - buy at cmp 505 sl 502 targets 518 - booked at 516
Crude Mcx - buy cmp 2965 sl 2949 targets 3150 - booked at 3135
Silver Mcx - buy at cmp 34335 sl 34200 targets 34650 - booked at 34500
Copper Mcx - buy at cmp 341 sl 339 targets 347 - booked at 346
