The market closed about 0.3% up Nifty @ 5542 (up 15) and Sensex 18484 (up 71).
So continuous 6 trading sessions market has closed higher - sensex from 17506 (on Monday 20/6) to 18484 - UP 978 points and Nifty from 5257 to 5542 UP 285.
Except last Friday increase of 500 points sensex or 150 points Nifty - the market has been fairly flat.
Yesterdays rise of 1% - sensex 180 points and Nifty 55 were more due to the price increase of all the oil marketing companies consequent upon the increase in the admin price of diesel & kerosene.
This increase in price of diesel is not going to reduce the short recovery fully and the govt cutting the excise/customs price on fuel also going to increase the fiscal deficit. Govt prog of disinvestment of 40,000 cr also may not happen without a major shortfall.
a) the fiscal deficit is more likely to be around 5.4%
b) the inflation in the next few months unlikely to be less than 9% and
c) RBI is still going to increase the rates by another 0.5% in the next 2 months
d) Govt seems to be in some kind of paralysis - with hardly new meaningful action taking place
e) Monsoon - now predicted below normal (may not have major adverse effect) but will certainly dampen the chances of the food prices coming down soon.
So with all the above - one wonders if this run up in the market is precursor to a major fall ??
Tell me when is the good time to sell .
So continuous 6 trading sessions market has closed higher - sensex from 17506 (on Monday 20/6) to 18484 - UP 978 points and Nifty from 5257 to 5542 UP 285.
Except last Friday increase of 500 points sensex or 150 points Nifty - the market has been fairly flat.
Yesterdays rise of 1% - sensex 180 points and Nifty 55 were more due to the price increase of all the oil marketing companies consequent upon the increase in the admin price of diesel & kerosene.
This increase in price of diesel is not going to reduce the short recovery fully and the govt cutting the excise/customs price on fuel also going to increase the fiscal deficit. Govt prog of disinvestment of 40,000 cr also may not happen without a major shortfall.
a) the fiscal deficit is more likely to be around 5.4%
b) the inflation in the next few months unlikely to be less than 9% and
c) RBI is still going to increase the rates by another 0.5% in the next 2 months
d) Govt seems to be in some kind of paralysis - with hardly new meaningful action taking place
e) Monsoon - now predicted below normal (may not have major adverse effect) but will certainly dampen the chances of the food prices coming down soon.
So with all the above - one wonders if this run up in the market is precursor to a major fall ??
Tell me when is the good time to sell .
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