– Indian markets traded sideways to upward yesterday. Markets are trading at highs and could see profit booking coming in any moment, so participants are trading cautiously. They are in the mode of “wait and see”, the development across the developed country’s financial markets. Sensex crossed the key psychological level of 28000 but could not remain above it due to selling pressure coming at higher levels, which shows that buyers are cautious at that level. Any positive development across the globe could take Sensex beyond this level.
– Banking sector, Pharma sector and PSU Oil Marketing Companies (OMCs) went up yesterday while metal – mining, cement stocks dropped. Banking sector went up as many analysts think that RBI could lower repo rates or at least will release some fresh funds into the markets by reducing some other rates like an SLR (statutory liquidity ratio) or CRR (Cash reserve ratio).
– COMEX Gold is expected to see some more selling. Short covering could take price a bit higher, but trend reversal from here is not discounted due to strong equity markets and stable USD. Bank of Japan’s heavy fund stimulus of around 727 billion dollars will make the flow of Japan’s money across the globe and will make the world equity markets move up for short term.
– Crude Oil closed at its lowest in the last 4 years due to the expectation that OPEC (Organization of the petroleum exporting countries) might not go for reducing oil production and will continue to produce the same level of output in order to compete with US Oil production from Shale technology. US is the largest oil consuming nation of the world and it has reduced importing oil because of its increased domestic production, which has lower the demand of OPEC Oil.
– US Senate, the upper house (like Rajya Sabha in India) has been taken over by the majority of Republican candidates. The democratic party and Republican party are the two parties who fight elections in the US. Republicans are Pro-India and Pro-Business. Its a good news and they are also expected to defeat the Obama led democratic party.