Daily Call - Aug 18 2008

More Indians would be watching the boxing arena in Beijing than what’s happening on the market ring, as the Bhiwani lads box their way to a medal or simply glory. Though the cues from the international markets are positive, our markets may not be able to benefit much as the local inflation numbers that came on Thursday, after the markets closed for the long weekend, are incapable of giving solace to the markets.


Should the markets provide an early bounce, it should be taken with both hands to lighten commitments, specially in the banking and other interest rate sensitive sectors like Real Estate, Construction and others. During the course of the week, we expect that the NSG meeting will fail to produce a nod for India and may need a second meeting in September, which may limit the upside potential of the current series.