Here it is, the Fiscal Cliff. Markets are soon going to realise the celebration of Obama and the general panic in the US markets are both in equal measures a global celebration and a classic over reaction that ticks off momentum in the other direction. 

If India denizens do realise the limiteed impact of the issues including the fiscal cliff's promised red splotched shores of recession then they can follow the DII traders into buying into the India markets even before the day is over but the correction is mandatory. ITC is up smartly, so is ICICI Banka nd there are the Mid Cap acts to follow the trend down which will present unique buying opportunities including Hexaware.

Biocon should be back in the mix except for the ill informed market sentiments in the areas of "focus on outsourcing" and "outsourcing is over" that seem to bring the edge back to the markets every other rally as unfortunately they remain unimportant issues esp to the business models of Indian companies succeeding in the US amrket and capable of building a domestic market franchise in their labs/sales departments

The markets should have probably continued up yesterday in New York and therefore here in Mumbai and we should still hope for a 6000 mark before the year i sover if the muted correction is followed by a good rally next week. Mannapuram and Muthoot have failed to pick up from Octoebr levels while NBFCs like M&M Fin nad Bajaj Fin did followon the good results and continued Tier 2 market development due to LIC Housing and Shriram Transport while Jet is backat invested and yet interested in investing category, Accumulation having begun earlier at below 340

Silver and Gold will probably weaken as Dollar surges back and the Rupee almost crossed over below 54yesterday but is hurt in early morning trade today towards its current LOWS of 54.6

 

 

Posted via email from The India Investment Post