panch-tattva talk…why the sell off?

Friends,

The govt has announced many an infrastructure related funding conveniences, it has also aimed at taking care of the deficit not very late in the day.

The excise duties have been kept at low level as against the expectation of some rise there.

The FMCG, cement, steel and auto off-take have been higher.

Rupee is not costly as earlier and IT sector should feel repite.

The corporates have raised handsome amounts through QIP.

Tatas have decided to attempt no further take-overs. They would concentrate of rationalising production and ensuring raw material security. They plan to raise capacity utilisation of their European facilities from 50pc presently to 85pc. They are confident of servicing debt worth $ nine billion on their books.

The Sensex PE is not at alarming level.

Much worse times have been negotiated ie the two quarters of degrowth have passed and there is light at the end of channel.

RBI may reduce interest rates further or at least keep them where they are.

If the rains fail to a bigger extent, there would be food import bill to tkae care and rupee would weaken. This is not bad for industry, hasn’t China thrived on back of currency under-value.

Then why the sell off? No body has an answer for this.

Nifty closed 4072 today. It has lost almost 12pc from the recent peak. It should be taken as opportunity to enter market by those who were left out. The DOW has come back above 8200 already today.

HariOm,
krsnaKhandelwal