The markets rallied by about 1.6 pc after the RBI surprised by cutting rates by 50 basis points instead of the widely expected 25 basis points.
1. The corporate results are beginning to pour in. The results of HCL Tech and HDFC Bank are good. Reliance had a poor quarter and about 42 pc of its profits came from investments. It means that Reliance has a lot of cash on its books and doesn't know where to deploy it. Reliance is a stock which I would stay away from at the current moment and look at only about 10-15 % lower.
2. HCL Tech results again underlined the poor results of Infosys. Infosys was and is a great company. It is not going away anywhere but it is losing its aura where it could command a higher premium both in terms of its pricing with customers as well as on the markets. The other IT companies are catching up with it.
3. Infy decision to freeze salaries as well downsize variable pay is going to increase attrition. People with Infosys on their CV are in demand in the market. Infy may see a spike in attrition from the current 12 pc to about 15-18 pc.
4. Spain worries come and go. It will still be some time before the bubble bursts and till then its trading time in the markets.
5. The markets are oscillating in the zone of 5200-5300. Till it breaks above 5400, I expect this to continue.This time the action is focused outside the Nifty. The Nifty may not be going anywhere but the individual stocks are zooming.
6. All dips are buying opportunities as the FIIs continue to buy.
7. The US Presidential years are ones where the markets generally do well. The QE-2 will end in June and I expect the Fed to come up with some further stimulus which will act as band aid and hold the markets.
8. The RBI rate cut means a marginal relief to home buyers. It signals the end of the rate hike cycle. Further rate cuts will hinge on a good monsoon, crude prices and the subsequent impact on inflation.
9. This may be the last chance to lock in FDs at attractive rates for a period of about 5 years.
10. The strategy to be adopted for the week will be to trade light and wait for a close above 5400. It would not be a bad idea to focus on good mid cap picks.
1. The corporate results are beginning to pour in. The results of HCL Tech and HDFC Bank are good. Reliance had a poor quarter and about 42 pc of its profits came from investments. It means that Reliance has a lot of cash on its books and doesn't know where to deploy it. Reliance is a stock which I would stay away from at the current moment and look at only about 10-15 % lower.
2. HCL Tech results again underlined the poor results of Infosys. Infosys was and is a great company. It is not going away anywhere but it is losing its aura where it could command a higher premium both in terms of its pricing with customers as well as on the markets. The other IT companies are catching up with it.
3. Infy decision to freeze salaries as well downsize variable pay is going to increase attrition. People with Infosys on their CV are in demand in the market. Infy may see a spike in attrition from the current 12 pc to about 15-18 pc.
4. Spain worries come and go. It will still be some time before the bubble bursts and till then its trading time in the markets.
5. The markets are oscillating in the zone of 5200-5300. Till it breaks above 5400, I expect this to continue.This time the action is focused outside the Nifty. The Nifty may not be going anywhere but the individual stocks are zooming.
6. All dips are buying opportunities as the FIIs continue to buy.
7. The US Presidential years are ones where the markets generally do well. The QE-2 will end in June and I expect the Fed to come up with some further stimulus which will act as band aid and hold the markets.
8. The RBI rate cut means a marginal relief to home buyers. It signals the end of the rate hike cycle. Further rate cuts will hinge on a good monsoon, crude prices and the subsequent impact on inflation.
9. This may be the last chance to lock in FDs at attractive rates for a period of about 5 years.
10. The strategy to be adopted for the week will be to trade light and wait for a close above 5400. It would not be a bad idea to focus on good mid cap picks.
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