Monday, 29 April 2013

Huge Optimism built up before RBI takes a shot on interest rate


Earnings, Growth in last quarter is still in single digit, which is worrying factor. However decline in Crude & Gold are good macro positive which would limit downside. Market currently trading at 16x which is expensive, without any catalyst playing in its favour. We don’t expect rate cut by RBI on its economic review May 3rd. Even if it happens may excite market for temporary rally to fall back & settle around Nifty 5600 levels. Commodities – Gold & Silver in particular - to cool their heels for some more time.
Debt Funds going forward would be safest haven to park fund as it will be delivering around 10% Tax Free Returns on year on year basis. Just ensure which funds suits your criterion before going for same.

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