Markets are also about sentiments. With non farm payroll results reading good, (jobless rolls were lowest in 6 years at 5.9 percent) and with the benign impact of falling oil price, markets look to be in for a 'senti push' positive territory at the start of the week. According to Reuters, Tokyo's Nikkei rose 0.9 percent in early trade while South Korean shares was quieter but still rose 0.3 percent Monday morning. Dollar looks good with the US economy on a great comeback. Dollar's rise and the fall in oil prices should together impact on gold which should be down. Spouses in India will be happy. In a falling market, however, housewives should wait to buy.
In the overall, should generally be good for the Indian market as FIIs may still be around and as input costs recede. On the banking front, it looks like Indian bank mid year results are crucial as NPA provisions may take their toll on bottom lines. Indian banking resources may grow faster than NPA worries so the investor may still be buying.
The Reserve Bank seems a bit too long in coming out with guidelines for small banks. Or is it that everyone is still busy with the new schemes?
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