Good morning, Inr opened a tad stronger 75.32 amid a slight pullback in US Treasury yields ahead of US inflation data and Fed meeting tonite . Some tiredness in Energy pricess too possibly adding to stronger asia this morning. Our own data on industrial production and CPI , that came in Y’day evening has come in line rather improved vs expected while IMF has retained India’s GDP growth to same 9.5% for this FY..also a relief factor.

The pace of decline in rupee anyways warrants a pullback. As I always say, factors explaining the move are multiple and always post facto, Mkts dont function on them ONLY, traders always need some catalyst to churn the positions..After all who does not like to see crystallized gains esp as we approach year end !

Trader’s are always the unreliable lot like humming bees , one factor today on which they acted wont even be considered tomorrow for the same reaction. Whole year, Oil was no where on anyone’s mind neither positively nor negatively but became a factor to rattle mkts in last few days. Why ? coz a catalyst to churn positioning was really needed..

Do you seriously believe there wont be any Gas to heat the cold ? Its market’s way to make you believe what is needed to believe and every belief in market’s come with an expiry date..Am not saying we are past that for the current move but surely the significance of same factor’s that drove this upmove will gradually recede unless there is a global risk off. 3rd Nov Fed meeting is critcal for further cues..In my read, they will avoid taper in this meeting esp given the vulnerable global state with forecasts lowered by IMF on global growth but will keep options/guidances open