Hello reader, hope you’re doing well. Markets may edge lower in early Friday trades despite overnight gains in the US markets after the July inflation numbers there rose slightly less than expected. The inflation report bolsters expectations that the Fed is done hiking rates. On the domestic front, post the monetary policy outcome, the focus will be on today’s IIP numbers to be released after the market hours. If the June core sector data meet expectations, it would further showcase India’s growth is on the right track despite a sluggish global economic scenario.
RBI kept interest rates unchanged on expectations that inflation fuelled by high vegetable prices could reverse quickly, but asked lenders to set aside more cash as reserves to ensure surplus liquidity doesn’t stoke price further. RBI has also asked banks to increase efforts to maximise recovery from written-off accounts, with data suggesting that banks have written-off almost 15 lakh crores worth of bad loans in the last 9 years.
PSU banks are a good bet for further upside from current levels. Keep an eye out for the major leaders in this sector and make the most out of this opportunity.
As always, risk management is key, and a proper system in place prevents one from losing out too much, in case of outlier events. Have a good trading day, and may the force be with you!
Disclaimer: this post is for educational purposes only, we are not SEBI registered analysts. Trades mentioned here are not trade recommendations. Equity Investments are subject to 100% market risk, please consult your financial advisor before investing.