Pre Open Thoughts: Sense Of Relief!!!

Pre Open Thoughts: Sense Of Relief!!!

Ø Human misery must somewhere have a stop; there is no wind that always blows a storm. The market has finally managed to temporarily weather the GAAR issues. Nevertheless, one needs to remain on guard as the Government is yet to come out with a final verdict on the contentious issue. So, expect more volatility until the matter is well and truly settled.

Ø Over all There is a sense of relief after the Finance Minister Pranab Mukherjee on Friday said that the Government of India doesn't intend to levy any tax on the holders of Participatory Notes (P-Notes). He also said that a clarification on the matter would be issued by the Government in due course and that the Centre has no intention of harassing genuine overseas investors.

Ø Watch the FII flows this week, which have tapered off due to confusion over GAAR. Results will be important as well, and so will be the data on IIP and inflation. The RBI meet on April 17 will be the biggest event for our market.

Ø We see a slightly lower start today. Asian markets are mixed and struggling for direction. US stock indices managed modest gains on Friday. European benchmarks finished higher on Friday.

Ø For India, it’s a truncated week with just three trading sessions. Usual intraday gyrations are likely to continue. The market is closed this week on Thursday due Mahavir Jayanti and Friday on account of Good Friday. Global markets might remain choppy and range bound in the absence of big-ticket catalysts.

Ø On currency front the rupee is also on sticky wicket amid rising twin deficits and falling forex reserves