India Morning Report: The Rupee holds at 64, Exports rise 13% in August

After a tentative first hour, brought on by correcting banks, 5900 is in sight on the Nifty, 20000 crossed on the Sensex an the metals and Bharti, ITC and Bajaj Auto are strongly in the running again.

Another tactical faux pas  by “The Economic Times” saw the paper twisting facts to headline a great segueway for Rs 60, making one doubtful of Indian media’s choices in opening the sector to FDI and in their chances of survival thence. The 15% jump in Auto sales for the month is largely a monthly downfall in 2012 data from a  Maruti lockout and Maruti’s growth from 32,000 units in August 2012 to 64000 units in August 2013 is still not noteworthy, again many missing the point for the yearly comparison. The Rupee is stable at INR 64 in today’s trades but may yet move to marks below Rs 60 as it recovers its mojo. Banknifty is barely holding 10000 with Asset quality concerns still weighing on improved profitability probably because of the uncertain performance from ICICI Bank and the run on SBI unlikely to stop as per admissions of deterioration from the management

Gold imports discovered a new bottom and better Economic forecasts pushed Indian prices higher and Global prices lower. The resulting trade synopsis of August 2013 for India reds, Trade Deficit $10.9 Bln , Imports stable year on year at $37 Bln and Exports up 13% to $26.1 Bln, one is told with double digit increases in all categories except Gold, which is truly good news for the currency. The Equity markets will still lead Rupee trades and so if indices can still manage to stay in the green despite a saturation in the Bullish positions in Derivatives at a PCR above 1.30, Rupee may also continue the come back trade much higher than 64 levels. Indeed the PCR has crossed above 1.50 levels showing trading did not abate yesterday at the 1.30 levels and this may indeed mean, there is no easy out for shorts left holding their new positions since Monday’s victory whoop in the markets

Global Universities may also be allowed to come in without a partner under old UGC rules, but may not engender World Class universities entering immediately or any impact on integration of financial markets which could be a great by product of the two sectors of media and education being rid of capital controls as well

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4 thoughts on “India Morning Report: The Rupee holds at 64, Exports rise 13% in August

  1. Pingback: India Morning Report: The Rupee now counting 63..62..61 , the Nifty counting 5900..6000 ..then? | The India Investment Post (earlier india.advantages.us)

  2. Pingback: India Morning Report: Energy cos can rise despite Export parity? | The India Investment Post (earlier india.advantages.us)

  3. Pingback: India Morning Report: Bajaj Auto reaffirms successful transformation in September sales | The India Investment Post (earlier india.advantages.us)

  4. Pingback: India Morning Report: Market inches to extend range up | The India Investment Post (earlier india.advantages.us)

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