Today, even as places like Mumbai brace for one of the highest tide, the bulls appear to be on a high of their own re-discovering their groove after a brief setback post budget. Indian stocks should manage to extend gains at the start. But, it’s not going to be a smooth sail ahead of the F&O expiry. If you wish to float around longer, hang on to your life-jackets by way of stop-loss. Some profit booking is not ruled out after the recent spurt.
Earnings so far have been better than expectations, both in India and overseas. The prospects for monsoon, which have been fluctuating, also appear to have brightened. FIIs have resumed their shopping spree after a short-lived lull. Those who went short after the budget are eating humble pie now. The primary market too is gradually beginning to claw its way back. India Inc. has been able to generate good bit of interest among investors through QIPs and GDRs.
Not all news is good though. Microsoft, American Express and Amazon.com’s earnings have missed Wall Street estimates. After briefly crossing the 20K mark, the Hang Seng slipped into red this morning. It is trading marginally up as of now.
Earnings so far have been better than expectations, both in India and overseas. The prospects for monsoon, which have been fluctuating, also appear to have brightened. FIIs have resumed their shopping spree after a short-lived lull. Those who went short after the budget are eating humble pie now. The primary market too is gradually beginning to claw its way back. India Inc. has been able to generate good bit of interest among investors through QIPs and GDRs.
Emerging market equity funds drew $2.6bn in the week ended July 22, the most since the period ended June 10. The VIX is back under 30, suggesting that investors are confident. But it remains above 20, a sign that investors are not overly exuberant.
Not all news is good though. Microsoft, American Express and Amazon.com’s earnings have missed Wall Street estimates. After briefly crossing the 20K mark, the Hang Seng slipped into red this morning. It is trading marginally up as of now.
