Pre Market Report, November 23, 2015 | Stocks and Commodities

November 23, 2015
Time: 8.30 am

Pre Market Report:

1. Asian markets are marginally higher in thin trade.
2. SGX Nifty is trading around 7880.
3. This is mainly due to positive global cues and less aggressive selling by FIIs in cash market.
4. Govt. plans to do away with all Tax exemptions and bring corporate Tax rate from 30% to 25%.
5. But the bad news is that they are doing away with exemptions first and corporate tax rate cut comes later.
6. This is negative news to all those companies enjoying tax benefits.
7. Next is the effect of 7th Pay Commission.
8. Since 2008, Private Sector Pay has not gone up, what salary package offered by IT companies for freshers in 2008, the same package is offered even now.
9. In the last 8 years, Private Sector Pay did not go up, but Inflation was up by 400% in many cases like Chicken, Egg, Pulses etc.
10. In this time period, Govt. salary has more than doubled and now they are likely to get another 23%.
11. Now people are thinking that due to this huge pay hike, fiscal deficit will go up, inflation will go up, RBI will not cut rates.
12. So Banking and Realty will come under pressure, according to them.
13. So even the long term trend looks not so good for India.
14. Most technical people feel that Nifty will visit 7500 at least in the middle of December when Fed hikes rates.
15. Now there is a 70% chance fro Fed rate hike.
16. The chances ate 68% for Nifty to expire between 7700 and 9000.
17. Auro Pharma will be in focus as it has received US FDA approval for Sildinafi Citrate generic tablets. Although this is for treatment of high blood pressure, people use it for some other purpose. (I do not know how easy to get tablets without prescription in US)
18. Nifty future is expected to trade between 7820 and 7920.