Indian burses are yet to be stabilized. Though national political unstable conditions arisen due to ‘nuke’ deal is apparently averted. Still bears are too strong. The inflationary trend is still exerting upward thrust, last Govt. admitted that its hovering around 11.63%, highest for last 13 years. Bank rate is increased for both; deposit and credit. Industrial growth is likely to suffer, since debt is costlier and market is favorable for raising funds. Silver lining is the monsoon; it seems to have arrived in time and dose is normal. So, inflationary pressure is likely to be curbed provided harvest is good. But, how about the burses, have them to wait till things look up! The small investors have abandoned the market, the institutions are sitting on the pile of cash; the FIIs are dumping their holding with every opportunity and withdrawing their funds to be utilized at their own country or for oil speculations. If it continues further (and very likely to), the share indices will dip in tandem.
Now, the time has come for big corporates to declare the Q1 results of financial year 2008-9. The entire market community is looking forward to it. The IT giant Infosys will declare their result on 11th July, hopefully it will be better than expected. The rupee being weak against dollars for the past quarter, their exports are likely to make more in rupee terms. The entire IT industries depend heavily on their export earnings, are likely to benefit due to weakening of rupee against dollars. The same is applicable for any other export oriented industries that san import for their inputs. Market may gain confidence, albeit for time being, with the good performance of the companies.
However, the experts opine that market will look upward when oil price cool down. But, when? That is the big question.
Now, the time has come for big corporates to declare the Q1 results of financial year 2008-9. The entire market community is looking forward to it. The IT giant Infosys will declare their result on 11th July, hopefully it will be better than expected. The rupee being weak against dollars for the past quarter, their exports are likely to make more in rupee terms. The entire IT industries depend heavily on their export earnings, are likely to benefit due to weakening of rupee against dollars. The same is applicable for any other export oriented industries that san import for their inputs. Market may gain confidence, albeit for time being, with the good performance of the companies.
However, the experts opine that market will look upward when oil price cool down. But, when? That is the big question.
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