India Morning Report: It’s the Divestment report that did it.

INR 82000 Crores as target and none the wiser for it, the FM has his task cut out in the remaining Fiscal, with Governor Rajan having been approved by the markets with much fanfare after he expectedly submitted to inflation being under control we would be ready to slide down from the 8% repo rate. The fixed income markets have indeed started down from 8% repo rate levels to the 7% barrier which is infact our reverse repo rate and recovery led investment would have come in by the time the rate cut happens, though the Governor promised a April date as the market saw it.

Meanwhile news of impending Divestment was good for Banks and the banknifty is likely not going south even as the market readies for another couple of quarters of low spending and low growth as sporadic investment projects undermine a secular recovery even as investment in Indian debt becomes de rigeur for Emerging Market investors who have already been prizing India for its equity market potential in the last months since October

Markets in general look to more news to cement bouncebacks in the rest of he stocks so it may come off still a s being disappointed by RBI and all that when it is indeed just failing to find head room in individual stocks while speculative grains may entice shorts specially the comeback in UB spirits and UB holdings on the back of investor victories are indeed suspect as are auto stories at 100klk sales in Maruti and 300k monthly sales in Bajaj or the corresponding flat number in GHero honda already generating scepticism in a highly sentiment driven market.

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