Pre Open Thoughts: Friday – Nothing Exciting!!

Pre Open Thoughts: Friday – Nothing Exciting!!

Ø In the field of observation, chance favours only the prepared mind. As expected, the euphoria After enjoying two terrific sessions at the start of the new year, the Indian equity market seems to have entered into a consolidation phase. There is no end in sight to the plethora of problems confronting the world and the Indian economy. The start is again going to be lower, as world equities continue to slide.

Ø On the global front Also, Greek Prime Minister Lucas Papademos has warned that his nation may face economic collapse as soon as March. A disappointing Rights Issue by Italian lender UniCredit SpA has also added to the European fiscal woes.

Ø Back home the rupee, one of the worst performing currencies in 2011 & stubbornly high crude are delaying the reversal in the RBI’s hawkish monetary policy. On the Flip Side RBI tweaks overseas borrowing norms to aid India Inc. This means, Indian companies can now raise money through foreign currency convertible bonds (FCCBs) up to USD 20-750 million without the regulator’s approval (the automatic route) and can repay the debt in 3-5 years time.

Ø Kingfisher Airlines and SBI could be in focus on the latest news about turbulence in the domestic aviation sector. Auto companies will remain in the spotlight due to the ongoing Auto Expo in New Delhi.

Ø According to Systems We maintain our sell call On Nifty with a stop 4900.on break of which there could be a trend reversal

Ø There will be a special one-and-a-half-hour session on the Indian bourses on Saturday. The session starts at 11:15 am and will close at 12:45 pm IST.