Will the rally go on

Markets have ended positive on Monday in reaction to the Govt’s monetary and fiscal action.But markets were off days high indicating some weakness.

There is a impression in the market that the stimulus provided by Govt is not enough to boost the economy.A further cut in CRR and SLR is needed.Which might only be declared once the inflation is seen cooling down.Stimulus declared by India is very nominal considering the $580 billion package by Chinese govt and drastic cuts by European banks.

The excise duty cut is a positive sign for the auto sector,helping the companies to slash prices by 2 to 4%.Cooling down interest rates also adds to the hopes auto sector which is seeing a huge slowdown.

With no major news in line Indian markets can be seen in line with global markets.Going ahead markets would start aligning itself to the results which would start coming out in early Jan.

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