METAL: India plans to impose safeguard duties on some iron and steel pipes, tubes and profiles to protect domestic producers from imports from China and Italy. This is going to have positive effect on the companies in this space. Sterlite Industries Ltd (CMP: Rs.97) is already moving up, Sarada Energy and Mineral Ltd is already going great today, CMP: Rs.108.
Tulip Telecom Ltd (Rs.22.60) hits another buyer freeze in the opening trade. Those who have taken my call and have invested must be feeling great.
RBI has clearly indicated the use of OMOs to increase the liquidity in the system. The RBI's decision of not going for a CRR cut immediately ignoring to the clamours of some bankers probably, is wise, as this could have given sudden gush of liquidity in the system, increasing the threat of retail inflation spiking up (core inflation and WPI are more or less in check). Bottomline: Our "Ustad" perhaps delivered the right drug this time though his prescription for future looks a bit conservative and bitter. However, his term ends in this September, 2013 and hence his forward looking statement might not carry much meaning for the markets. The action by the RBI is widely believed to keep in check higher inflation expectations and the inflation could follow the same trajectory with a downward bias. The liquidity is expected to remain moderate in the system, with RBI hand coming often.....The growth would continue as the government is taking various measures to lift the sagging economy. The current policy action is expected to have neutral effect on the markets. The Nifty_Spot which is now ruling at 5960, is expected to move up from here and would make a dash towards the next target of 6040 (Spot).