Pre Open Thoughts: Auspicious Day!

Pre Open Thoughts: Auspicious Day!

Ø  Learning to live in the present moment is part of the path of joy. Today is Akshaya Tritiya. "Akshaya" means the never diminishing and Akshaya Tritiya is considered one of the most auspicious days to buy gold. It may be good opportunity to add some gold to your portfolio. Gold is a hedge against inflation and currency gyrations besides a safe haven in times of uncertainty.

Ø  In the meantime it’s a nightmare for India, the big worry right now is the relentless slide in the Rupee. And this has increased the headache for policymakers who have their hands full with a whole host of problems.

Ø  The rupee has slide to 52.54 vs. dollar is likely to remain weak in the near-term as factors like low capital inflows and high current account deficit are expected to take their toll. Unless structural issues like high current account deficit (CAD) and balance of payment (BoP) situation improve, the rupee is likely to remain weak in the near future.

Ø  The question troubling many participants is: how long can this range on nifty of 5200-5400 hold on? The Indian markets suffered sharp cuts on the last trading day, there were no supportive cues either from the global or the domestic front that could help the markets move higher.

Ø  Today, the start is likely to remain sluggish and the markets may extend their downward journey in early trade. Being the F&O series expiry week the trade is likely to turn choppy. However, investors’ sentiments may soothe a bit with Finance Minister Pranab Mukherjee exuding confidence that the Indian economy would ride on its strong fundamentals and resilience to take a higher growth trajectory.

Ø  There will be lots of important result announcements to keep the markets buzzing . Most Asian benchmarks are trading higher but Japanese shares are down.

Ø  The FIIs were net sellers of Rs. 4.07bn in the cash segment on Monday as per the provisional figures released by the NSE while the domestic institutional investors (DIIs) were net buyers of Rs 4.51bn.

Ø  Watch telecom stocks -- Bharti Airtel, Idea Cellular, Tata Communications, Reliance Communications -- as India's telecoms regulator (TRAI) proposed a sharply-higher-than expected base price for an auction of 2G radio spectrum, after a court order to cancel all telecoms permits awarded in a scandal-tainted 2008 sale and redistribute them through open bidding.

Results Today:

AP Paper, Bajaj Corp, Blue Dart, ING Vysya Bank, Petronet LNG, Polaris Fin Tech and Sesa Goa.

Global Data Watch:

US S&P Case Shiller Home Price Indices (YoY) (Feb), US Consumer Confidence (Apr), US Housing Price Index (MoM) (Feb), US New Home Sales, (MoM) (Mar), US Richmond Fed Manufacturing Index (Apr).