India Morning Report: No Taper and Nifty on to 6100 levels

A rather unexpected reticence by the Fed, allowed Global markets to uncoil their expectations of a taper and the Indian Rupee opened at its best price of INR 61.5 today barely hours after the announcement. the shorts on banks disappeared overnight as did the opportunity in depreciation lit IT with the Banknifty finally moving 650 od d points to above 11000 today and the 7% increase in ICICI Bank to 14% in Yes Bank possibly still allowing steam in the rally to 6300+ levels and a long awaited rally in the banks with the liquidity measures likely to go away. (what if there’s no taper?)

Apart from the bigger damage to shorts on Banks, the rally has caught most by surprise and thus some may wait out for lower levels to start again, but stopping market enthusiasm at 6080 levels itself is likly to fail with the momentum of the event generated uncoiling allowing immediate 6300 levels. Also the taper remains on the horizon for the US Fed as it tries to tackle the question from a new structural cap to growth in the US and the  Rupee may be allowed to break below  to erase the damage since May

F1 Australia Grand Prix - Thursday

F1 Australia Grand Prix – Thursday (Photo credit: Wikipedia)

Indian yields are back to 8.16% levels. ITC and  Bharti have continued investor fueled upmoves at 350 levels, while Sun Pharma and ONGC and the Energy companies rebound to 2010 levels. Investors also found the chances to get back into Hero Honda and Maruti, both of which may easily by rejected later for Bajaj Auto in the Auto/Two wheeler sector

The Rupee might close a little lower but above 62 till 4pm and in RBI trades after.

Advertisements

9 thoughts on “India Morning Report: No Taper and Nifty on to 6100 levels

  1. Pingback: India Morning Report: Bank Policy (weekend edition) and the running reallocation to India | The India Investment Post (earlier india.advantages.us)

  2. Pingback: India Morning Report: The Question is if the Rupee has bottomed out | The India Investment Post (earlier india.advantages.us)

  3. Pingback: India Morning Report: Dead Cat Bounce, rebounding earnings on the horizon.. | The India Investment Post (earlier india.advantages.us)

  4. Pingback: India Morning Report: Dead cat bounce, Earnings rebound on the horizon, | The India Investment Post (earlier india.advantages.us)

  5. Pingback: India Mornign Report: Banknifty swings up like a monster trad, already semi-retired | The India Investment Post (earlier india.advantages.us)

  6. Pingback: India Morning Report: A sudden change of heart(afternoon) as Banknifty breach closes up | The India Investment Post (earlier india.advantages.us)

  7. Pingback: India Morning Report: Infosys slam starts off a results season rally | The India Investment Post (earlier india.advantages.us)

  8. Pingback: India Morning Report: Nifty treads lightly as shorts disappear (Priced to 6300+ levels ) | The India Investment Post (earlier india.advantages.us)

  9. Pingback: India Morning Report: 6220, then, true bottom, market move up please. | The India Investment Post (earlier india.advantages.us)

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s