Markets will carry the positive vibes set in by the macro improvements into trading today. You could see a green open followed by positive trading bias for the day today. The positive sentiment prevailing in the Asian region will provide some added strength.
Welcome back after a brief breather. So, what’s new today? Well, nothing much, so to say, but the positive vibes that the macro improvements (however little) have brought in could well sustain for today as well. All eyes and ears are now firmly tuned toward the noise emanating from the corridors of the financial managers of the nation who have been talking about a better second half as compared to the first half.
In fact the growth numbers that government representatives have been talking for the GDP seem to be hinting towards a firm change in the course of the economy from where it was in the first half of the fiscal. Can the Indian economy really manage a growth at or above 5% for the current fiscal? It could well be too early to believe those numbers, unless a gradual improvement happens over the next quarter.
The markets will in all probability price in this positive noise into their functioning for at least over the next few days (unless and until something contradictory emerges to spoil the mood). But the short to medium term focus will now clearly shift on the quarterly numbers which start pouring in within a week from now. is the market expecting any surprises from corporate India for the second quarter? Not likely. There has been a considerable amount of pain in the second quarter and this makes it quite obvious that there could be no positive surprises on the results front at least in the manufacturing sector. Yes, you could certainly see some buoyancy in certain export oriented sectors like IT through. All said and done, the performance of the second quarter seems to be broadly priced in to the markets for now.
Coming back to what happened in the global markets yesterday, the US remained shut for the third straight day and there is yet no deal in sight. It may sound quite perplexing but the fact still remains that the world’s most powerful economy is facing a virtual standstill with the non-passage of its budget. So much so that advisories are being issued against travel to the US by certain countries. How soon will this impasse end? We don’t know. For now markets across the globe are looking worried about the US shutdown. European markets closed in the red following a weak trading day yesterday. In the US too markets were looking anxiously towards lawmakers for an early resolution to the impasse. Though they pared their losses, overall the day was on the red side for the frontline indices there too.
Near home, Asian markets have opened in the green and are trading positive. Improvement in the PMI numbers particularly in China have helped markets up this morning. Taiwan, Korea, Singapore, Malaysia, Indonesia and Hong Kong are all trading comfortably up. China too is on the winning side today.
How are we set to open the day? As said earlier markets will carry the positive vibes set in by the macro improvements into trading today. You could see a green open followed by positive trading bias for the day today. The positive sentiment prevailing in the Asian region will provide some added strength.
