The Markets will remain positive for June 2009: A little worry though

It was two horrific news with a good one. What a combination you may ask?

The first and obvious story that captured the headlines were the racism attacks on Indians in Australia. That followed with the news that Oil prices will be de-regulated which means that things could go costlier in future.

However, it may just be good that it will happen. The reforms was what was expected of Congress and they are bang on it! It also may turn out to be good for the economy overall. Because that inflation can grow up from here and this will help the country to be back on the fast track out of recession in general.

The Good news from a cell phone user point of view was that Minister A. Raja said that he wished the Telephonic rates to come down to 10 paise for local calls and 25 paise for STD calls. What the government has dones is done a small harm with even smaller good.

This can spell doom for mobile telephonic companies profit margins, but then they will have to resort to VAS for earnings. This is a bit tricky one which may not necessarily boost healthy competition. Instead, I forsee mobile companies getting too agressive with VAS and customer will be bombared with calls and SMSes ignoring privacy and Do Not Disturb facility.

These news’ will have its effect on the Sensex and how! I stand by my prediction on Sensex crossing 16K by June end which I had posted earlier on my Blog. Trade safe, dont be aggressive in your investment decisions.