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Markets likely to make some recovery after a sharp fall

28 Feb 2012 Evaluate

The Indian markets were butchered in last session on global concern and lacking any supportive cue from the domestic front. Today, some recovery can be expected after the sharp cut and the traders are likely to go for some value picking, though the mood is likely to remain cautious. European markets movement will decide the further course of action for the domestic markets.

There is likely to be some buzz in the telecom sector as one of the telecom body GSMA after the quashing 122 telecom licences by SC, has asked sectoral regulator TRAI to outline quickly the future course of action to bring in transparency and certainty to investments made in the sector.

Meanwhile, the export oriented stocks are likely to be under pressure with the report that government is preparing to withdraw the interest subsidy offered to select exporters as it tries to rein in its burgeoning fiscal deficit.

There will be some scrip specific movements too, to keep the markets ticking. State Bank of India has cut interest rates by one percentage point to 13.25% for loans under its 'student scheme' for amounts between Rs 4 lakh and Rs 7.5 lakh. ONGC is expected to produce an additional 28 million standard cubic meters per day natural gas production by 2017.

The US markets made a mixed closing on Monday supported by the better than expected housing data and a pullback in the energy sector. National Association of Realtors reported that pending home sales approached a two-year high in January, with a climb of 2% last month. However, there was some concern related to the eurozone The G20 said Europe must ramp up money to fight the debt crisis before leading economies will provide more funds to the International Monetary Fund.

The Asian markets are once again trading mixed, however some of the indices have recovered from their fall in last session. Japanese market was trading lower by about a percent as yen strengthened and Elpida Memory Inc. filed for the biggest bankruptcy in two years.

 

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