The contraction did take place in the market while the expansion in the cabinet is scheduled for tomorrow. The bulls are set for a powerful start with global cues to the rescue. On the local front, the govt appears to be sending out the right signals, except for the diktat to state-run banks on rate cuts and the ban on sugar futures. Big ticket disinvestment plans in power sector firms are grabbing headlines. Efforts are on to announce the budget in time as well. FBT may be given a burial too.
In the US, consumer confidence has shot up to the highest level since September. But, home prices fell 19% in the Jan-Mar quarter yoy. In Japan, exports tumbled again in April, but the slide seems to be abating a bit. The Hang Seng has crossed 17,500. The Nikkei ended the morning session up 1.5%. Meanwhile, crude oil has risen past $62 per barrel ahead of the OPEC meet on Thursday.
