World leaders will meet in Pittsburgh, President Obama will be playing host to the Group of 20. There may be apperant bonhomie but there are very many issues that have implication of grave nature for one or the other of the participents. There will be China wary of US stance as the later is raising tariffs on imports. US has worries about the continuing clout of China as an exporting nation. It is believed that the depression of 1930 had deepened due to trade restrictions which were resorted as remedy by the world’s nations.
Then there is concern over the monetary matters. The UK and France have an idea that the banks should be taxed on the basis of the volume of transactions ( I think that this would not be a bad idea).
The Advance Tax payments by India Inc have been up by 15pc in Q2. Bharti Airtel has an increased outgo by 220pc. This is enough of a reason to buy ‘bhartartl’. It has not yet participated in rally and has to cover ground sooner or later, pre or post deal or whenthe deal flops.
Nifty closed at no less than 5020. I think you remember my mentioning that the Nifty will carry on upmove after there is 52W high level achieved by at least five of the Nifty stocks in a single day. This feat has been accomplished by nine on Tuesday, the 22nd Sept 09. Namely they are ‘hdfc’,’infosystch’,’maruti’,’pnb’,’ranbaxy’,’sbin’,’tcs’,’tatamotors’ and ‘wipro’. Can any body resist the scaling of new high for Nifty by the end of this financial year. If nine can do this in a day, the rest would attempt to do it one after the other and the result naturally would be as I just told you. Will it be right or wrong, is the question that comes to mine. I amy assure you that it would be just in line of the development that have taken place since Jan 08. The ywo years time span expects the growth of monetary assets by at least 20pc and this will still not be the case when Nifty crosses 6200 mark. So worry less and concentrate more on your investing excercise. What I was telling by way of caution to only be raedy to enrich and be more safe when there is any sudden occassional drop. Afterall the Nifty has been going up continuously for weeks togather.