The export based survivals like and cotton are facing the heat of Rupee strengthening. The Rupee got good strength on the future outlook of the economy and the huge dollar inflow.
The IT and the BPO sector mid caps will suffer the most as they cannot match their peers. The giants are eyes the domestic business which is opening its doors, especially to the top 5 It power houses.
The markets are gaining strength in the index due to heavy import dependant oil sector majors gaining the ground for the last 10 trading days.
The RBI heavily invested the surplus of dollars in GOLD, allowed the rupee to appreciate for some extent to balance the payment obligations.
Now the market will see correction in Pharma majors Divis, CIPLA, Ranbaxy, DrReddy, Piramals, Aurobindo and export dependant infrastructure companies like Punj Llyod and LT, some extent the Indian auto companies who are exporting considerably.
The banking sector is waiting for some cues to react. The price of ICICI falls below 850 then the market will see a major correction as anticipated. The Tata steel is facing resistance at 649-52 level will touch 614-611 incase the Nifty trades below 5250 level.
As of now the only ugly duck and lamenting for Govt. support industry- the reality sector is in bull grip may be some informed action being built in.
The odd sign is that the treasury stock sale of Reliance for Rs2500 cr and the promoter offloadings are not healthy signs, stimulus exit plans in near future may welcome bitter taste.
The Nifty is still in Bull grip so long it trades above 5240 and a serious correction for 100 points is viewed with the above said (previous postings) supports cracked.
Friday, January 08, 2010
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