Source: Udayan Mukherjee Comments
... Globally too things are good. There is a fed meeting coming and most people expect rated would be cut and that could only be good for emerging markets. We fell off because of this technical trigger and we have just gone back to new highs once again. If this P-note issue had not happened, may the market would not have had technical correction either and (market) might have been at 20,000 by now. But that happened, may be its good that it has happened but now the market has just got back to where it fell off from, and its no surprise that market is this up this morning.
... So I am not with those people who believe we are in for an extremely lackluster markets over the next few weeks. I think in the foreseeable future the chances of the market darting up pretty fast is actually pretty high because you had a technical correction from which markets recovered and just got into a new high and I would be surprised if momentum is give-up so easily by the domestic traders at the start of the new series with an important global event where the chances of it panning out in your favour are fairly high.
.. Even 25 bps will do for us. Last time 50 was a bit of a surprise. If its 50 then you have got a big rally on your hands or bigger rally on our hands. But even if it is 25 market will not sulk. Because remember just one week back, the probability of 25 bps fed rate cut on the futures was as low as 40% and that has moved upto 100% in the last few days. So, I think even 25 bps is good for emerging markets, there is no problem with flows.
Sensex 19220.92
October 26, 2007
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