Investors are optimistic on tomorrow’s finance budget. Rupee traders are on the sidelines. There is perception that global inflows into India will increase after the budget and for the rest of the year. I will be looking at weak signs in the Finance Budget tomorrow which can result in outflows from India and then take a call on the medium term direction of the rupee. Passing the budget in the Rajya Sabha will be a herculean task for the NDA government. There will be some sops to appease certain political parties and ensure that Rajya Sabha passes the budget.
The railway budget has been all about involvement of private players in different zones. The railway minister has also asked the cabinet to allow foreign direct investment in railways. The railway budget if implemented properly will result in better services for the people. It could induce more people to use the railways for travel instead of their using their vehicles for distances around two hundred kilometers. Implementation will be the key. (I myself personally prefer road travel for upto two hundred kilometers from Delhi).
However monsoon rainfall in North and North-West India is showing signs of drought like conditions. Monsoon rains will be the real test for the government. Globally there is no news.
Usd/inr July 2014: It needs to trade over 60.05 to target 60.43-60.67.Initial support is at 60.05 and there will be another wave of selling if usd/inr trades below 60.05 to 59.92-59.76.
Euro/inr July 2014: A consolidated break of 82.03 will result in 82.26-82.76. Initial support is at 81.76 and there will be sellers only below 81.76 today.
Gbp/Inr July 2014: Cable needs to break 103.10-103.30 zone today for further gains. Initial support is at 102.57 and there will be sellers only below 102.57.
Jpy/Inr July 2014: It can rise to 59.3475-59.76 as long as it trades over 58.96. There will be sellers only below 58.96.
The railway budget has been all about involvement of private players in different zones. The railway minister has also asked the cabinet to allow foreign direct investment in railways. The railway budget if implemented properly will result in better services for the people. It could induce more people to use the railways for travel instead of their using their vehicles for distances around two hundred kilometers. Implementation will be the key. (I myself personally prefer road travel for upto two hundred kilometers from Delhi).
However monsoon rainfall in North and North-West India is showing signs of drought like conditions. Monsoon rains will be the real test for the government. Globally there is no news.
Usd/inr July 2014: It needs to trade over 60.05 to target 60.43-60.67.Initial support is at 60.05 and there will be another wave of selling if usd/inr trades below 60.05 to 59.92-59.76.
Euro/inr July 2014: A consolidated break of 82.03 will result in 82.26-82.76. Initial support is at 81.76 and there will be sellers only below 81.76 today.
Gbp/Inr July 2014: Cable needs to break 103.10-103.30 zone today for further gains. Initial support is at 102.57 and there will be sellers only below 102.57.
Jpy/Inr July 2014: It can rise to 59.3475-59.76 as long as it trades over 58.96. There will be sellers only below 58.96.
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