Friends,
The crude is selling at over $66/bbl which is highest in last six month. Any further rise will pose difficulty for India but strong rupee will absorb some of the shock.
Silver has gained about 23pc in month of May in international market. Gold also has moved closer to $1000/oz mark.
Salman Khursheed, new Corporate Affairs minister has said that retrenchment will not be allowed, it can only be last resort.
There are 10 Indian companies in Forbes 500 list. This is quite an achievement for the Indian corporate sector.
A Crisil study expects the NPAs in Indian economy will go up by three times, from current NPA level to Rs 2 lac crs.Indian banking system will see NPAs rise from 2.3pc in March 08 to 5pc in March 2011. They expect it to have stressful effect on economy. I, however, have differing openion and think that the banks in India have pretty nice spread and growing business to take NPA growth in stride. They are also armed with ‘securitisation act’ and would have opportunity to recover dues from at least the secured borrowers.
CSO (central statistical organisation) has estimated the GDP growth in 08-09 at 6.7pc. This comes as a good sentiment booster.
The lot sizes in F and Section will be one fourth of present size where the value is in excess of Rs 8 lac and one half of present size where the present value is more than 4 Rs 4 lac (effective after expiry of June series). In fact it a failing of SEBI/NSE that the value of contracts are allowed to go up to such an extent which makes carry over of business difficult for the smaller players. This is taken advantage of by the big players. It is like letting people fall in trap and then denying opportunity to those who would want to fight back. In fact it can be made a regular feature by automatic halving the size as soon as the value goes past Rs 4 lacs. It will be still better if the contract size is kept at Rs one lac. This will see broader participation and more balanced markets. In interest of safety contracts of over six month expiry should not be allowed because this can be used to influence markets unduly. When the melt down happened last year, the huge build up in Nifty options was done for Dec 08 series as early in in May 08.
Some sectors now show gain over the year earlier level. BSE-Auto is higher by 6pc, BSE-Bankex is higher by 7pc, BSE-PSU is higher by 19pc and BSE-Oil and Gas is at par over the year back levels.
The Asian markets have opened up and US markets had closed up on Friday. Nifty is trading with some gains in Singapore. Remain optimistic but be doubly more cautious.
The ‘panch-tattva/post result’ recommendations have mostly been keeping you on right track and hope you have taken due advantage.
HariOm,
krsnaKhandelwal
Panch Tattva Wisdom 