The local bulls have decided to look beyond the budget. The FM’s statements on disinvestment and clarifications on the borrowing programme, coupled with reports of encouraging progress in monsoon have allowed bulls to raise their glasses. A simultaneous rally across global markets has added fuel to the fire.
Spirits are not high when a discount sale is underway in the market; rather happy hours are when you can sell at a profit. The Fed’s minutes released give reason to cheer, though there is nothing fresh about the assessment of the US economy. Still, words like recession may soon end could provide some more ammunition to the bulls. We expect a positive opening, but it would be wise to cash in on the rally rather than get in.
Performance chasing my perk up sentiment for some time but the morning euphoria may not last all day. Assessing the market trend has become quite a task given the heightened volatility. Several more bouts of rallies and reversals could follow in the coming weeks and perhaps months before there is stability.
China's gross domestic product (GDP) expands by 7.9% in the second quarter, beating estimates for a 7.7% expansion, thanks to rising domestic consumption and a strong increase in industrial activity. Consumer and wholesale prices, however, sink lower.
