- Second quarter earnings and US political uncertainty could dictate the trend..
- The next major trigger for the market is the second quarter corporate earning numbers which will start with Infosys on 11th of this week. A long straddle could be one of the trade ideas to play out this opportunity.
- On other hand investors are watching the political development in the US as the lawmakers fail to find consensus on the budget and health care spending bill. Warren Buffet commented that the US Politicians will go near the border of idiocy in this issue - but will not cross it. Experience speaks and let us hope what Warren Buffet says is true. This will bring in volatility for one or two weeks, then things will calm down. Again time for volatility play.
- In India, the government will unveil industrial production data for August 2013 on Friday, 11 October 2013. Industrial production rose 2.6% in July 2013 as against a contraction of 1.8% in June 2013. With the help of supreme court (who indirectly banned mining), Govt (slow decisions, corruption), RBI (high cost borrowings), no wonder the industry production and overall demand looks sluggish. Whilst India's fundamentals are still strong, hope the recent change in RBI and other initiatives will revive industrial sector going forward.
- On 14 October 2013, data on inflation based on the wholesale price index (WPI) and the consumer price index (CPI), both, for September 2013, are due. The rate of inflation based on the combined consumer price index (CPI) for urban and rural India decelerated to 9.52% in August 2013 from 9.64% in July 2013. The annual rate of inflation, based on the monthly wholesale price index (WPI), accelerated to 6.1% in August 2013 from 5.79% in July 2013.
