The follow up “revelations” of almost all due process (sic!) used to manage fund accretions thru mutual funds, insurance and deposit products in the Sub continent’s private Banking/Wealth Management units failed to enthuse the markets despite the expected ‘seriousness’ again to be accorded by regulators, finmin and banks’ compliance functions as known tricks of the trade admittedly still deplyed by at least 17 of the accused banks are so commonplace that cooperation among banks also part of the revelations is a defacto quantity and yet not news at least to those who try to engage the markets and develop the discipline of asset allocation between short term liquidity and longer term investment/retirement and event needs. Though some youth might be encouraged to consider this as a sign to push for transparency and progress and banks will show them the clean house they need, these practices are not even necessarily questionable and are known to all salaried taxpayers who remain most enumerated in the Indian taxpayers contributing revenues to the government.
One wonders the efforts for black money recovery could further gain pace but only from continuing increase in banking deposits and registered investment products though you would agree that a full fledged DTC implementation and that of an integrated GST would have had the benefits to revenue one expected. The morning has recovered since the Cobrapost expose with the Sensex up a 100 points and the bank rally is still alive if you do hold long positions on the bank nifty
Fixed income yields have not ticked down with an eye on CRR pushing pressure from rate cut to extra crisp liquidity in the coming policy or two and RBI also will be busy with arranging OMOs and as always look at its longer term SLR/CRR obectives in this light a s needed
The Rupee in this leg is bound to follow a complementary target to the equity moves but with lesser dissonance between the two markets the atmosphere this week is overall more conducive to building up long sides of the trade and even expecting Thus do not play for volatility trades in this series or look for too many day trades unless it is your favorite mid caps or blue chips still not out with their results and outlook for the rest of 2013 and which you are fully informed about.
- India Morning Report: HUL reports, buys back 22.5% equity, market establishing upward tilt for orbit (awardz.wordpress.com)
- India Morning Report: Here the bounceback, there the banks and airlines (awardz.wordpress.com)
- PFRDA tightens rules for pvt sector NPS (rediff.com)
- Hedge Fund Strategies & Structure: 4 Stunning Graphics (insidermonkey.com)
- Top Mutual Funds in India for 2013-2014 (paisatalks.com)
- ‘Big Joe’ Clark: Your portfolio might be at risk (heraldbulletin.com)
- India Morning Report: The right resetting of expectations of a viable future (awardz.wordpress.com)
- India Morning Report: 5900 is holding, India inc waiting for RBI to respond (awardz.wordpress.com)