Monday, 29 October 2012

Busy Season Credit Policy


Busy Season Credit Policy is out and RBI keeps key policy rates unchanged. Cuts, CRR (Cash Reserve Ratio) by 25 basis points to 4.25%.
RBI actions are on expected lines considering rise in inflationary pressure due to increase in diesel prices.
Market, had already discounted this possibility as a result was trading in narrow range of 18600 to 18800 levels. However, retail investors reactions are more eminent with policy announcements which as a result has plunged Sensex around 1.50%
Going forward, market may also en-cash this opportunity for corrections, which may happen in intraday today itself. Having said that BSE has strong support at 18440 & NSE at 5600 levels.  FII (Foreign Institutional Investors) are overweight on NSE-50 Stocks –so as Large Caps are flavor of the moment.
We are strongly recommending to en-cash current opportunities by participating in same, and there-after if opportunity multiplies.
Fresh participation in Debt market is also benefited with the postponement of interest cut, leading to comfortable 9% annualized TAX FREE – RISK FREE returns. 

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