– The head lines across media and the flood of SMSes in last 24hrs have been speaking about the Rate cuts by RBI and the simuli it would provide to the stock markets. Does that mean the Companies would line up Monday onwards to take credit from the banks? Or does it mean home loans would get a boost immediately? Gimme a break! Nothing of this sort is going to happen. The sentiment is so bad out there that the effects of these cuts would take long time to show out.
– A article appeared in BL today (2/11/08) The theme says cutting rates now is like “taking a horse to the pond” U can take a horse to the pond but can the RBI make it drink the water? (I would try to put the article on the web if Iam able to find the soft copy. If you all remember MFF mentioned quite number of times during the period RBI was busy hiking rates to contain inflation, that RBI and FM are going to kill the industry in the name of Inflation and the rest is history, the inflation is still at 10+ levels and industry scenario need not be mentioned by me since it is well known by all of you!
– It is planned here on give new calls on the web, on email (through all MFF friendly yahoogroups) and by SMS on the Free SMS group. A separate methodology would be adopted so that it can be tracked by all hence be hocked on to the above and join the sms and email groups immediately. The stocks from the pdf files are removed.
– As said repeatedly we may see a short term bounce but that will also bring in more selling for the FII’s waiting to jump in to sell. The rallies may take us till 12000 but the highs should be capped atleast until the parliament elections. Five state elections would be held this month and next and the temperaments would be high on the political front.
– UPA may direct RBI for more desperate move in order to please the general public which is waiting to throw the Govt out. Keep visiting the website and be on the SMS group for buy calls tomorrow possibly. MFF paid members would any ways be receiving sms directly on their mobiles!