Tit - bits

Photo: Suvvuku Shankar

Yesterday, the domestic bourses  extended their bull onslaught for the fifth straight trading session, taking cues from the strong global markets and a sentiment booster speech from the "Jumla specialist", Narendra Modi. 

The BSE Sensex jumped 522.01 points or 1.57% to close at 33,825.53, while the Nifty50 index gained 152.95 points or 1.56% to end the day at 9,979.10. Both these indices have recorded gains of around 10.5% in five sessions. 

The BSE Mid-Cap and small cap indices registered gains of 1.20% and 1.83% respectively. On the BSE, 1738 shares rose while 721 shares fell. A total of 152 shares were left unchanged.

A broad based buying was seen, with lead coming from private. In a sense, the market moved up on Dutch spirit,  on the hope that world and Indian economic landscape would change for the better soon. 

Speech specialist, Narendra Modi while addressing the captains of India Inc on Tuesday, reiterated (like he always does... 😂😂) that India will get its economic growth back and is already on that path with government's various reforms. 

NaMo said: "We will take structural reforms that will change course of the country; we will together build self-reliant India. Getting back on track is highest priority for government, he added".

Hilarious, isn't? He has been saying this since the last 6 years, while "Growth monkey" has always been smart enough to show him the middle finger. His, "Bhasan Bajii", is all for public consumption, with little  merit or effect.

😂😂😂😂

Since, this version of BJP came to power in Delhi, India hardly had any growth graph to showcase to the world, expect during initial few months, piggybacking on P C Chidambaram's economics. 

But, then what outcome would you expect when you ask a truck drive to steer an aeroplane through air pockets? 

This is what happened, with Indian GDP growth decelerating to around 2%: when an unnecessary "Brute force", called demonetisation, touted to cure almost all economic and structurual evils, got birth in Tughlaq - ian style and spirit, in India. While knowledgeable leaders and renowned economic experts laughed and ridiculed, the move, the "Bhakta brigade" and their pet economists were seen thumping their chest in vainglory. 

This was not end to the stupidest stupidity. GST, was implement in a hurry,  inspite of warning from world renowned economists like Dr.Amit Mitra (FM of Bengal), without much checks and balances. The tax structure has become even more complex with, patches coming up every now and then to replace earlier faulty fiats. This further broke, the already stressed vertebra of India Inc.

Ironically, those industry captains and economists who were tom-toming the economic benefits of both demonetisation and GST are nowhere seen now. So,  be careful of these fly by night actors and their sympathizers. These marketmen  are Infact asymptomatic carriers and distributors of "NaMo Flue" virus....😂😂

Anyway, after, this initial euphoria generated due to news of phased ending of Lockdown gets over, we will again be back to basic, as an already rickety Indian economy has taken a severe beating due to Coronavirus epidemic and the current index levels are NOT justifiable or rational.

In another significant development, the Union Cabinet on 1 June 2020 approved minimum support price for 14 kharif crops. The revised prices will provide farmers nearly 50-83% more than the cost. 

All these price rise and free money world wide is likely to create Sticky Inflation, like it happened post Lehman Brothers crash in 2008. We are already having huge unemploymemt crisis brewing in the distant horizon and this nagging Coronavirus issue, will make things further worse as Lockdown gets phased ending. 

I don't see much light at the end of the tunnel, unless this current regime in Delhi is booted out lock, stock and barrel. 

Play, according to charts only, with a short to medium term perspective. Don't take too risky bets. Play safe. Buy only fundamentally strong companies. 

If you have a penchant for the F&O segment, then I would like to point out that: according to my analysis and understanding, it is much easier to trade in Nifty Futures as compared to individual counters. If you are doing daily trading or jobbing I would suggest swing trading, only in Nifty futures and index stocks.