Today, the bulls are enjoying the GDP growth music as India does an elephant dance. Sure, the stimulus measures are showing the desired effect. When sentiment turns bad we will revisit the deficit figures. For now the question is when will the RBI step in to suck out surplus liquidity by tightening monetary policy? We reckon it would be in January.
The country's GDP expanded by 7.9% in Q2. The growth for the first six months now stands at an impressive 7%. Upward revision of GDP growth will be the order of the day now. Services grew by over 9%. Agriculture, showed some growth but next quarter is most certain to be negative.
The opening may be just about in the green. Thereafter, the indices are expected to weaken. Profit booking could be seen in counters which ran too fast on Monday. Global cues during the day will be watched closely for direction. For now, the global signals are mixed. Asian markets are weak.
The country's GDP expanded by 7.9% in Q2. The growth for the first six months now stands at an impressive 7%. Upward revision of GDP growth will be the order of the day now. Services grew by over 9%. Agriculture, showed some growth but next quarter is most certain to be negative.
The opening may be just about in the green. Thereafter, the indices are expected to weaken. Profit booking could be seen in counters which ran too fast on Monday. Global cues during the day will be watched closely for direction. For now, the global signals are mixed. Asian markets are weak.
