Global Equitry Markets continued to stay on a jittery ground though majority of the markts recouped their losses on Monday. Wall Street closed flat recovering from a 180 point slide early in the morning. Dalal Street too closed above the much talked about 200-DMA. Interestingly the support around 4970-4980 which was tested twice this month continued to hold.
Euro continued to slide against global currencies, pulling global equities and commodities down. We expect Euro to stay low for the next 2-3 months. Huge short positions were built in Euro.
Coming to Indian economy there is no way except for Mr. Subba Rao to raise rates again as a measure to cool off the economy. Domestic spending is giving a major boost to Indian economy, helping to de-couple or minimize the global impact. We always said the new mantra for D-Street is domestic spending.
While major sectors like Infrastructure, Realty are still struggling, PSUs, Banks and IT sector took the cream of the rally in the last 13 months or so. Small Investors are in no two minds whether to invest or not in this tough market. But it is time to sit and corner some cash for investment in Indian Equities which offer unimaginable oppurtunity of growth in the coming 4-5 years. It is going to be a crazy and wild upmove once Europe dust settles and we are super bullish on Indian Equities. But we believe there is still time to accumulate