Friday, January 29, 2010
End of the Day
Market fell from 17641 on Jan 18 to 16189 on Jan 28 which was the last day of Jan settlement. Drop of 1452 points or over 8%. All bad news ended with end of earning season. Obama comment, S&P downgraded Japanese funds, profit booking unwinding by hedge funds and open interest unwinding were enough to damage the sentiment to leave the open interest of Feb at 48000 Crores only, in this period market digested FII selling of over 1.5 bn usd. Govt is here to support market which seen from the fact that LIC bought over 1 bn usd stocks in this period, Govt also planning to sell ITC and Larsen for 20k Crs apart from 25k Crs disinvestment proceed Sail and Tisco working at over 100pc cap prove a point that India is not only doing well but we will achieve 9% GDP. This selling was only an abrasion. It was the last chance to bears to break the 4800 level yesterday they missed the bus.
CRR hiked by 75 basis points which will help in controlling the storming inflation. However, the key interest rates were left unchanged. The hike in CRR is expected to suck out Rs 36,000 crores liquidity from the system. Despite CRR hike, we are not expecting any rates hike. This will expand capex which will help in Economic growth. Selling is absorbed and we expecting fast recover and our target is intact.
There are three types of traders in the market, one makes wonder happen, second see wonders happen and third one wonders what happened!
BigGains !!
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