Markets may see profit booking: Anagram
Asia is suffering the after shocks of the sharp thud with which the US banks collapsed yesterday night and our markets too are expected to begin trading sharply lower. Though all the major banks have beaten street expectations in their quarterly results, there is growing feeling that situation on the ground has not really improved for the banks as the KBW Bank Index fell 15.4%.
Banks in India too will be punished and would not wait till the RBI policy release to see what is in the store. The mounting mounds of money in the reverse repo with the RBI is a clear indicator that despite being flush with funds, banks prefer to lock it up with the RBI than risk lending to business, which in their eyes is still risky. Technically speaking, the trendline, which has been holding up the Sensex will get broken today and pave the way for a deeper correction. Be in a profit booking mode.