panch-tattva talk…10 yr yield

Friends,

The interest yield on 10 year govt. paper is now very moderate 8.44 p.c. It had gone upto over 9.5 p.c. In recent past and after the last policy announcement of RBI which had dear money policy bias. I had expressed a view that how the high rates may be sustainable when the capital flows are welcome and are less restricted , the economies of US and west are having lower rates of interest and the ruppee is not depreciating fast enough. The inflation is expected to moderate too in about six months. The crude has seen its five month low at under 105 dollar to a barrel. The timewise correction is now over to a large extent and the domestic money pool , either in hands of HNIs or the MFs is restless to get parked and preferably in equities. In light of all this I think Indian markets would not remain down for long. For the sake of record the Nifty is trading at around 4442 in morning session against yesterdays closing of 4469 . What is noteworthy is the fact that DOW shed 280 pts last day.

HariOm
KrsnaKhandelwal