Our markets are closed today on account of Gandhi Jayanthi holiday. Yesterday our markets added some more gains, however, Nifty 4000 level proved to be supply zone, and profit booking on account of a holiday a head, also kept markets subdued. However, both indices have closed around 5DSMA levels at the end of the trading. VIX has closed at 35.54. Indo-US Nuke deal was cleared by House of Representatives paving the way for signing of the agreement between two coountries on 04.10.2008, which makes availability of transfer of technology, availability of fuel etc., helps India to use for Civilian Purposes. The real benefit will come afte few years, but the base is now clear makes our position advantageous solving the infrastructure problem.
US Senate has cleared revised bail out package of 700$ Billion today at the early hours (IST), has paved the way to seek House of Representatives clearance today or tomorrow. Asian markets posted losses today, and US futures indicate weak opening, as the bail out package in the revised form shall not straight away solve the problems being faced by the financial sector and that too immediately. Jobless claims data has come at its 7 year peak also will keep the sentiment weak tonight. While our markets open tomorrow for trading after holiday, will certainly follow overnight US cues and being the last day for the week will have lack luster trading. Crude has cooled down to 97$ is welcome news, and rupee also closed at 46.62 against dollar yesterday after breaching 47$ levels. As of now, this 47 level will be defended by RBI and it might trade in the band of 45 to 47 for some time, may be till October 24th Policy meeting and measures if any to be initiated will affect the currency either way. The fall in crude price being offset by depreciation of rupee, thus the fiscal situation in India is not much affected currently. In case of more FII flows from next week, based on results expectation and performance of corporate sector.
Inflation data which is due to be released today, is deffered to friday, tomorrow, as today is a central government holiday. It is estimated that inflation might be below 12%, which comes true will improve the sentiment for equities, as RBI might hold monetary tightening for some more time, at least policy meeting.
No comments:
Post a Comment