morning thoughts...
The markets remained volatile with choppy trade throughout the day with the important astrological transit taking place on monday.
Technically the markets are on a spring levels and if it has to bounce it must bounce from this levels.
The Modi government wants to give infrastructure a big push is apparent. After all, that was one of the key factors that dominated its election campaign agenda. What more, in the recent Budget too, the thrust on infrastructure was obvious as the FM spoke of increasing investments, improving productivity and more outlays for new projects and programmes.
Not surprisingly, banks are not too happy with this. One of the reasons why there is not much comfort for high tenure loans is the issue of asset liability mismatch. More importantly, banks are worried and quite rightly so of the possible rise in bad assets or restructuring of assets. Indeed, quite a few loans to the infrastructure space have gone bad, especially the ones where the projects have stalled. Indeed, as per an article in the Mint, as of March 31, 2014, infrastructure loans worth Rs 572 bn were under corporate debt restructuring (CDR). This accounted for around 20% of all loans to all sectors.
On the downside 7400 remains as important support levels whereas stiff resistance will be witnessed at 7650 levels.
Coming to the commodity markets bullions - gold , silver , base metals , energy looks strong for the coming sessions.
Tuesday -
Buy gold , silver , copper , sell crude
Buy Mphasis bfl , orchid chemicals
Nifty 7500 ca , Axis bank 1900 ca , Icici bank 1380 ca
The markets remained volatile with choppy trade throughout the day with the important astrological transit taking place on monday.
Technically the markets are on a spring levels and if it has to bounce it must bounce from this levels.
The Modi government wants to give infrastructure a big push is apparent. After all, that was one of the key factors that dominated its election campaign agenda. What more, in the recent Budget too, the thrust on infrastructure was obvious as the FM spoke of increasing investments, improving productivity and more outlays for new projects and programmes.
Not surprisingly, banks are not too happy with this. One of the reasons why there is not much comfort for high tenure loans is the issue of asset liability mismatch. More importantly, banks are worried and quite rightly so of the possible rise in bad assets or restructuring of assets. Indeed, quite a few loans to the infrastructure space have gone bad, especially the ones where the projects have stalled. Indeed, as per an article in the Mint, as of March 31, 2014, infrastructure loans worth Rs 572 bn were under corporate debt restructuring (CDR). This accounted for around 20% of all loans to all sectors.
On the downside 7400 remains as important support levels whereas stiff resistance will be witnessed at 7650 levels.
Coming to the commodity markets bullions - gold , silver , base metals , energy looks strong for the coming sessions.
Tuesday -
Buy gold , silver , copper , sell crude
Buy Mphasis bfl , orchid chemicals
Nifty 7500 ca , Axis bank 1900 ca , Icici bank 1380 ca
