By Dilip Bang of Nirmal Bang
In the previous fortnight, European Union leaders reached an agreement to infuse direct equity in Spanish banks and purchase bonds of other countries at a two-day summit in Brussels in June end.
However, the impact of the decision on Spanish and Italian bond yields is yet to be seen and problems in the Euro zone continue to remain a challenge. Also, the growth in the US is witnessing moderation.
During this period, a few companies released their Q1 earnings results, which were in line with market expectations. However, the earnings result of IT bellwether Infosys was rather disappointing.
Also, the declines in crude oil prices and lower gold imports have helped reduce trade deficit in the month of June, which will help the rupee to appreciate. The rupee seems to have peaked out and it is likely to appreciate in the coming months.
Low progress of monsoon continues to be a cause of worry and traders and investors are advised not to take any