morning thoughts...
The markets continued its journey upwards with good outperformance in specific stocks.
On September 5, 2014, after leaving its inimical sign Venus under Chitra constellation, Mars will transit into its own sign Scorpio. Though it can be said that transit of Mars in Scorpio may not be favorable for all the zodiac signs; however, this transit will be filled with passion, excitement, adventure, and courage. The reason behind this fact is that all these qualities are associated with Mars. During transit, Mars gives auspicious results in houses 3rd, 6th and 11th from Moon. In others, it lacks in giving favorable results.
Technically ,Indian stock markets are scaling new tops every day.
However, it seems that the PSU pack has lost steam in this late leg of the rally. PSU stocks part of the BSE-PSU index are down by about 20% from their peak levels in 2014. Such a massive correction has sent the government worrying that its divestment target could take a hit. It may help to note that the government is planning to raise Rs 430 bn over the next 6-7 months via divestments. Obviously, a declining share price would mean the proceeds received from the divestment would be lower. And if the government intends to maintain its target then it shall have to liquidate more of its holdings. In other words, it will have to dilute more. Thus, it would be interesting to see if the government postpones its share sale plans amidst a fall in PSU stock prices or dilutes more to meet the targets.
Amidst the asset quality and poor credit off-take woes, here comes another trouble for Indian banks. In one set of news, foreign banks will now be allowed to lend in Indian rupees.The central bank has allowed non-resident foreign banks to offer debt to local companies in Indian rupees. This is expected to happen through swap arrangement with Indian banks. However, this will call for fresh competition for Indian lenders from the foreign counterparts. Primarily because foreign banks are not bound by the reserve requirements of cash reserve ratio (CRR) and Statutory Liquidity Requirement (SLR). This would make it easier for them to lend at cheaper rates. Moreover, the fact that foreign banks can set up representative offices in India for lending purposes also is a big encouragement for them to set up base in India. While the Indian banking sector dynamics are undergoing a sea change, underlying challenges persists for the domestic players.
Coming to the commodity markets bullion will stay volatile with a buy on dips and sell on rallies.
Base metals and energy are likely to trade positive in the coming sessions.
Yesterday's calls sent
Buy gold gave 49 rs , silver gave 198 rs , natural gas gave 3 rs
Mega jackpot option - upl 340 ca at 17 closed the day at 37
Double bumper option - dlf 180 pa tripled , jp associates 50 pa tripled , rcom 110 pa doubled
Fo - buy cesc rose 33 rs , sell hdil crashed 5 rs
Cash - lic hit stoploss , torrent power rose 5 rs
Fii - buy shalimar paints rose 20 % , bajaj auto rose 80 rs
Jackpot - buy datamatics technology rose 18% , escorts rose 15 rs
The markets continued its journey upwards with good outperformance in specific stocks.
On September 5, 2014, after leaving its inimical sign Venus under Chitra constellation, Mars will transit into its own sign Scorpio. Though it can be said that transit of Mars in Scorpio may not be favorable for all the zodiac signs; however, this transit will be filled with passion, excitement, adventure, and courage. The reason behind this fact is that all these qualities are associated with Mars. During transit, Mars gives auspicious results in houses 3rd, 6th and 11th from Moon. In others, it lacks in giving favorable results.
Technically ,Indian stock markets are scaling new tops every day.
However, it seems that the PSU pack has lost steam in this late leg of the rally. PSU stocks part of the BSE-PSU index are down by about 20% from their peak levels in 2014. Such a massive correction has sent the government worrying that its divestment target could take a hit. It may help to note that the government is planning to raise Rs 430 bn over the next 6-7 months via divestments. Obviously, a declining share price would mean the proceeds received from the divestment would be lower. And if the government intends to maintain its target then it shall have to liquidate more of its holdings. In other words, it will have to dilute more. Thus, it would be interesting to see if the government postpones its share sale plans amidst a fall in PSU stock prices or dilutes more to meet the targets.
Amidst the asset quality and poor credit off-take woes, here comes another trouble for Indian banks. In one set of news, foreign banks will now be allowed to lend in Indian rupees.The central bank has allowed non-resident foreign banks to offer debt to local companies in Indian rupees. This is expected to happen through swap arrangement with Indian banks. However, this will call for fresh competition for Indian lenders from the foreign counterparts. Primarily because foreign banks are not bound by the reserve requirements of cash reserve ratio (CRR) and Statutory Liquidity Requirement (SLR). This would make it easier for them to lend at cheaper rates. Moreover, the fact that foreign banks can set up representative offices in India for lending purposes also is a big encouragement for them to set up base in India. While the Indian banking sector dynamics are undergoing a sea change, underlying challenges persists for the domestic players.
Coming to the commodity markets bullion will stay volatile with a buy on dips and sell on rallies.
Base metals and energy are likely to trade positive in the coming sessions.
Yesterday's calls sent
Buy gold gave 49 rs , silver gave 198 rs , natural gas gave 3 rs
Mega jackpot option - upl 340 ca at 17 closed the day at 37
Double bumper option - dlf 180 pa tripled , jp associates 50 pa tripled , rcom 110 pa doubled
Fo - buy cesc rose 33 rs , sell hdil crashed 5 rs
Cash - lic hit stoploss , torrent power rose 5 rs
Fii - buy shalimar paints rose 20 % , bajaj auto rose 80 rs
Jackpot - buy datamatics technology rose 18% , escorts rose 15 rs
