Positive start – no convincing turnaround - IIFL

It's an F&O expiry week and the usual volatility associated is more or less expected. Speculation remains on whether the 'Septaper' will happen; in other words whether the Federal Reserve will pull back on asset purchases in September.

The outlook is a positive start to begin with. The rupee, which closed at 63.20 on Friday will remain in focus. Asian stocks are in the green after a fall in US home sales raised hopes that Federal Reserve may not reduce economic stimulus next month.

Data showed new home purchases in the US plunged in July by the most in three years. Back home in India, the GDP number, the broadest measure of economic activity, will be closely eyed and is expected later this week.

Finance Minister P Chidambaram during the weekend reassured FIIs and banks that once the rupee's slide was curbed and stability returns to the currency markets, interest rates would start falling, according to a report.

Source : Equity Bulls

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