Caveat – Views are personal and only for knowledge sharing. No commercial interest involved in bringing this on wordpress platform. Only idea is to consolidate daily content on one platform and no liability on part of mig if these inputs are applied for making investment decisions without carrying out your own due diligence
- Cost of getting stuck in traffic jam on day 1 of full rains in Mumbai – 2 miles covered in 180 minutes and icing on cake the fuel line just turned from white to red – 5 litres in red line exhausted and the scare was – will I get the fuel station or the hector will have to be pushed by a tractor and the doze of migmorning had to be skipped
- Can’t go on abusing the infrastructure but reaslied one thing, don’t wait for redline in Mumbai to get refuelled start doing it at half tank because these 2 miles can take a day as well. The way city has been uprooted in last six odd months and in the name of refurbishing through Metro I’m sure this monsoon is going to remind 2005. I wish I’m wrong
- Starting a bit disillusioned today but then last two days events fail to give confidence. Often I use song lyrics in my write up and they are romantic or entertaining but today I’m going ahead with one that will go down as the least liked song of mine and in a way below standard but still I will use it because the two old men in America have failed to maintain the dignity of office they have held in last two terms
- चौबेजी छब्बे बनने चले दुबे बन के लौटे – this is not directed at anyone personally with the surname but actually a song – the first televised debate took place between Trump and Biden with the idea being that it will provide the boost to Biden’s campaign reinforcing that he’s capable of taking on for another term, in a way it has boomeranged
- Post the 90 minute face off Democrats seem to be split on how to take on Trump who himself is facing a series of challenges and towards half time in debate seemed to be faltering and it was barbs from one side to other with nothing constructive coming out. Questions have now started coming on merits of Biden going into the contest and who can potentially take over in August convention
- The personal consumption price index has cooled off in May to 2.6% vs 2.7% in a way adding some comfort to Fed’s assessment and keeping the hopes of a cut alive in 2024. I’m still hopeful that a cut in September is on the anvil, though ground situation still warrants keeping rates elevated, and then there will be a long pause till maybe March
- At the time of writing this report wall street is trading flat and somewhere on the back of this data, dollar index has started its downward spiral trading at 105.50. Though inflation data gives a hope the treasury yields are still trading at elevated levels with 10y at 4.35% and Gold seems to have found a support at USD 2300 wherefrom it has pulled back and currently trading at USD 2340
- Coming to India, G-sec yields were flat at 7.00% with volumes of INR 650.00 bn out of which 10y was around 40%. Market is continuing to spread its network far and wide on duration with reasonable volumes getting recorded in longer tenor papers
- In the weekly auction of GOI securities Government has borrowed INR 310 bn through issuance of 10y and 40y paper at a cut off of 7.02 & 7.10% respectively with a fairly healthy bid coverage ratio. All in all the gilt market is giving up the guilt of last few years and on the launchpad to take off
- The new high on nifty is 24174 that it recorded y’day but towards the end of day it gave up all it’s gains and ended with a loss of 35 pts, though still above 24k. Budget grapevine is keeping the nifty going up but somewhere the fatigue is about to set in. The only question, will nifty be able to give a trading range of 2000 pts either side in next one month? Looks difficult but expect the volatility to return in coming days
- Closing remarks – off the cuff – India takes on South Africa in T20 world cup final and the basic question is what will India take – the trophy or wrest the title of permanent chokers from the Proteas who accidentally became chokers in 1992 in England thanks to Duckworth Louis formula and then lived by the reputation. India over the last 10y has failed to win a final of an ICC event. Let’s see
Stay safe, stay healthy, God bless you all, have a great day !!
Regards
Vikas
To get regular updates on your mobile subscribe to my telegram channel
Ebook edition of my books Rewards of a Shortchanged Life and When Life shortchanged Me is given below. Kindle subscribers can read it for free. Follow the link
Vikas Miglani writes 