US Markets resumed the slide yesterday after one day of pull back rally on Friday despite economic data falling in line with expectations. Indian market strength is weak, presumed from the last 2 sessions.
Reliance grabs EIH stake
Reliance Industries Ltd. paid Rs 1,021 crore, which is a 22 per cent premium on the company’s current market price of Rs 151 a share, valuing EIH at Rs 7,200 crore. RIL bought 14.2% stake from EIH Ltd. promoter P R S Oberoi and two other promoter entities, Oberoi Hotels Pvt Ltd and Aravali Polymers LLP. Reliance will not participate in the management activities and is treating this investment as a diversifying act.
Hotel & Entertainment stocks are likely to witness strong action in today's trade following this news.
Q1 GDP
The official GDP, a measure of a country's overall official economic output, figures for first fiscal quarter ended June will be released on today. While economists expect 8.6% to 9.2 % growth rate for the Q1 ending June, we at DStreet believe consolidation in economic growth will be witnessed in the coming quarters.
Market momentum will be impacted by Q1 GDP numbers.
Lackluster trading
Markets lack conviction and rightly so the retail investor participation is at a low. We believe this time the retail investor is correct in his own terms and any decent correction will see him taking a plunge into the market.
Lot of cash on sidelines will provide a cushion to the slide in the market. We are in for a long term bull market but yes not with out a meaningful correction