Inflation expectation data released just now, though higher than market analysts estimates, at 8.75% is already priced in by the markets, it appears. The initial small sell off is abosorbed instantly. Advance tax payments will be completed by 15th june'08 the data will trickle from monday onwards, which will indicate possible profitability and performance projections from companies and sectors, and the markets might move up from here on next week, albiet volatility, and challenge 4620 and 4735 levels initially, as the discount in nifty futures currently stands at 35 points, gives comfort for cushioning on short covering. Any positive news, like cooling of crude below 128$ and higher advance tax payment etc., will result in short squeeze.
Reliance Industries have confirmed that Reliance Petroleum commissioning will happen second half of this financial year, is keeping both RPL and RIL in good strength, inspite of weakness in all other stocks. If markets have to go up these two stocks should lead the rally. Keep a watch on them. J&K Bank, of course a small player, announced hike in PLR to 14%, a 100 basis points raise, is the first to react to RBI initiative on repor hike. M3 being at 22.5% RBI might consider another round of CRR hike any time. All the Scheduled commercial banks, covered under recent Agricultural Debt Relief Package shall receive the first tranche of money from Government, before 30.06.2008, which should help in cleaning of PSU Banks Balance Sheets, shall be a positive for PSU Banks. Watch banks like, Andhra Bank, Vijaya Bank etc., some good performance in the coming weeks.
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