morning thoughts...
The markets once again acted and reacted in the same direction as intimated and our advance nifty targets achieved 7800.
Technically the markets move into an uncharted territory with 7650 as important and crucial support levels on the lower side and 7950 as resistance zones.
The infrastructure sector has been badly hit by the economic downturn.
Thus its hopes are pinned on the Union Budget to be unveiled on 10th July.
However, macroeconomic woes are far from over. In fact food inflation is climbing up once again on looming fears of poor monsoon. Even crude prices are firming up as Iraq remains under siege. A falling rupee is likely to further add to the fiscal deficit burden. In the last two months, fiscal deficit swelled up to a six-year high of 45.6% of the full-year target. Therefore with India's finances remaining on tenterhooks, one can hardly expect the government to announce big-ticket investments in the sector.
The morale of the sector can still be boosted through a host of non-monetary measures. These include steps for fast clearance of stalled infra projects by encouraging greater participation of the private sector, earmarking must-do projects and setting up infra funds/trusts for quicker financial closure. It is measures such as these that are likely to set the ball rolling and kick-start the economy.
A quick look at the companies that have raised money via the equity route so far reveals the real story. The main reason for raising funds is to repay existing debt. Companies in sectors like infra, power, metals, telecom etc are at the forefront of this rush. The companies in these capital intensive sectors had borrowed heavily in the last few years from India and abroad. The combination of high interest rates and the fall in the Indian Rupee have hit the ability of these firms to repay the loans. When these debt laden firms approached banks to refinance the loans when they became due, the banks refused. The financial situation of these firms was dire. Now however, things have changed. The new government has promised to boost the economy by adopting a business friendly approach. The stock markets have shot up to all time highs in anticipation of an economic recovery. This has provided these firms with a much needed lifeline. By selling shares to institutional investors, they hope to clean up their balance sheets. By reducing leverage in this way, they believe that they will be well placed to ride the growth wave.
Astrologically The head of the dragon, Rahu is transiting in Virgo on July 15, 2014.
The markets once again acted and reacted in the same direction as intimated and our advance nifty targets achieved 7800.
Technically the markets move into an uncharted territory with 7650 as important and crucial support levels on the lower side and 7950 as resistance zones.
The infrastructure sector has been badly hit by the economic downturn.
Thus its hopes are pinned on the Union Budget to be unveiled on 10th July.
However, macroeconomic woes are far from over. In fact food inflation is climbing up once again on looming fears of poor monsoon. Even crude prices are firming up as Iraq remains under siege. A falling rupee is likely to further add to the fiscal deficit burden. In the last two months, fiscal deficit swelled up to a six-year high of 45.6% of the full-year target. Therefore with India's finances remaining on tenterhooks, one can hardly expect the government to announce big-ticket investments in the sector.
The morale of the sector can still be boosted through a host of non-monetary measures. These include steps for fast clearance of stalled infra projects by encouraging greater participation of the private sector, earmarking must-do projects and setting up infra funds/trusts for quicker financial closure. It is measures such as these that are likely to set the ball rolling and kick-start the economy.
A quick look at the companies that have raised money via the equity route so far reveals the real story. The main reason for raising funds is to repay existing debt. Companies in sectors like infra, power, metals, telecom etc are at the forefront of this rush. The companies in these capital intensive sectors had borrowed heavily in the last few years from India and abroad. The combination of high interest rates and the fall in the Indian Rupee have hit the ability of these firms to repay the loans. When these debt laden firms approached banks to refinance the loans when they became due, the banks refused. The financial situation of these firms was dire. Now however, things have changed. The new government has promised to boost the economy by adopting a business friendly approach. The stock markets have shot up to all time highs in anticipation of an economic recovery. This has provided these firms with a much needed lifeline. By selling shares to institutional investors, they hope to clean up their balance sheets. By reducing leverage in this way, they believe that they will be well placed to ride the growth wave.
Astrologically The head of the dragon, Rahu is transiting in Virgo on July 15, 2014.
In 2014, Rahu transit will be on July 12, according to the traditional astrology. But, as per KP Ayanamsa, the change will come on July 15. The difference is only of two-three days, so hardly matters.
Rahu is the planet which has been feeding many astrologers’ families since ages by the fear and myth created about the planet. The funny thing is that recently an ex-minister of Madhya Pradesh was arrested and he quoted in a national newspaper as saying “I am going through Rahu Mahadasha this is why all this is happening”. It was in the national news also for some time. So, we see from the top brass to bottom enders – all are afraid of Rahu, usually for the reasons which do not exist in actual.
Virgo is a sign ruled by Mercury, it is a an earthy dual sign, which makes it quite complex. The planet Mercury is supposed to be the prince in the planetary parliament. Hence, it is the one that will always be prince and is also a eunuch. It is mentioned in some classical texts of astrology. Virgo consist of stars of Sun, Moon, and Mars.
Rahu is a planet which is non-existent. It is the one that has no shape or size like Jupiter, Saturn or Sun. Rahu has a peculiar nature that it borrows significations from other planets very quickly. This borrowing nature of Rahu makes interpretation of Rahu very difficult. It stays in a sign for around 18 months, which is next to Saturn. Thus, the transit of Rahu is very important in natal and mundane astrology. The transit is going to last till February 01, 2016, as per KP Ayanamsa.
Rahu is said to be good in only four houses that are 3, 6, 10, and 11. In rest of the houses, it is malefic. Those who are running through the DBA of Rahu or their Dasa Lord is connected with Rahu, they should be most affected by the transit, others will not get affected to that extent.
Mondays wealth creators
Double bumper - idfc 140 ca rose 7 rs , kotak bank 860 pa rose 21 rs
Triple bumper - drl 2600 ca doubled , tcs 2400 ca doubled
Jackpot and fii - rajesh exports rose 18 rs , dhfl rose 49 rs , navbharat ventures rose 37 rs
Buy copper rose 3 rs , crude rose 25 rs
Sell gold fell 127 rs , silver fell 455 rs
