India Morning Report; Rupee hits final free fall, Equities avoid snag

English: First Rupee, a Rupiya Silver coin, is...

English: First Rupee, a Rupiya Silver coin, issued by Sher Shah Suri r. 1540-1545 CE. image from personal collection (Photo credit: Wikipedia)

 

Rupee responded to the 57 mark hit on Friday and this most of the week will continue to manage all the reations to new level of the rpee before it probably heads towards a new “equilibrium” range for 2014 with RBI intervention missing till Friday evening being a minor risk to the prognostication of the leves around 57.50 ranging back to till 56, if the Equities funds flow impact is actually turned into seas of green this week or early next week itself.

 

The news of US having recovered based on the z1 report (Financial accounts) of Thursday, is a Fed push again from better days of 2013 and the recovery in retail and requirement of a more robust sustainable inflation has pushed the QE withdrawal to 2014, but a token notice is likely to weigh in on global funds tracking in 2013 esp towards Q4

 

The Banknifty is very pliable from 12150 es the bad boys of PSU led by the surprising bite on BOB books, which have probably bottomed at 660. Justdial is unlikely to be jettisoned by IPO investors in a hurry,  Dominos (Jubilant Foods) and even Jet Airways holding a good “precedent’ for them and thus social networks are likely to keep JustDial levels higher above 600 for another 90 days before a call can be taken for Secondary investors in terms of post IPO investible levels

Yen is crossing 100 again on the upswing from 95 level and will be backed by GSAM among others to new 110 levels esp as US hedge funds may not exit April May shorts on JGB and as long as the interest rate risk on the same is managed well by BOJ, Koruda taking over in his last six months from PM Abe whil currency falls could probably now sustain with a lower level of sales of JGB

Day Trader picks have moved on from trying to short the Top 40 visible, high capitalisation scrips to probable better success rate in small and mid cap picks. Yes Baank corporate governance hiccups with the succession battle not being insignificant keeps it out of trading orbits likely ranged  while flying passenger miles this month or retail and real estate credit jumps at ICICI Bank and the rest are unlikely to be very strong in May or june despite the pressure on the Rupee not tranlating into consumption economy pressures for India Inc or its consumers, imported components driven only by the movement of Oil rices, getting better if oil prices in fact continue correction

 

 

 

Where the Rupee is used

Where the Rupee is used (Photo credit: Wikipedia)

 

 

 

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3 thoughts on “India Morning Report; Rupee hits final free fall, Equities avoid snag

  1. Pingback: Rupee impact: The Free fall continues, small snag on equities in India signifies end of the 2nd 2013 run in Asia | The Banking and Strategy Initiative

  2. Pingback: The Mid-Week Trend Update: Banking heavies on watchlist as US exits S&P ‘risk’ | The Banking and Strategy Initiative

  3. Pingback: India Morning Report: RBI Announcement brings in the relief jump | The India Investment Post (earlier india.advantages.us)

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