Today another higher start, bolstered by firm global cues and potentially benign local economic conditions. As long as the FIIs keep the money taps open, the bulls can dance a little longer.The Sensex has doubled in the shortest period in two decades. India Inc. seems to be in the pink of health, if the advance tax numbers are any indication.
Fed chairman Ben Bernanke says the recession in the US is "very likely" over. Dollar remains weak amid a persistent bias towards risky assets. Commodities too are flaring up. To top it all, Warren Buffett says he is buying equities. Banks led from the front as far as advance tax numbers and stock gains are concerned. There is also talk of the RBI raising the cap on securities held under the HTM category to help banks avoid MTM losses. RBI chief D. Subbarao says he will maintain the expansionary monetary policy till the recovery is "secured".
Fed chairman Ben Bernanke says the recession in the US is "very likely" over. Dollar remains weak amid a persistent bias towards risky assets. Commodities too are flaring up. To top it all, Warren Buffett says he is buying equities. Banks led from the front as far as advance tax numbers and stock gains are concerned. There is also talk of the RBI raising the cap on securities held under the HTM category to help banks avoid MTM losses. RBI chief D. Subbarao says he will maintain the expansionary monetary policy till the recovery is "secured".
The biggest challenge for the RBI now is to plan an exit strategy. Similar concerns may be giving sleepless nights to central bankers around the globe. Hopefully, the G20 Summit will throw some light on this crucial matter.
