The current account deficit for the April-June quarter of current financial year has come inline with expectation at $16.9 billion or 4.9% of GDP. The reading for the second quarter (July-September) is expected to be better due to growth in exports in Q2 and significant drop in import of gold. The overall CAD for FY14 is expected to be less than 4.0% of GDP. India's Finance Minister has set the FY-14 target for CAD at 3.7% or $70 billion.
Considering the setup of options data on Nifty where in the maximum open interest of around 10 million shares are built at 5900 strike, it seems Nifty is likely to close between 5850 to 5950 in September expiry. Put call ratio of 1.07 at 5900 strike all suggest equilibrium of perception at this level. Accommodating the margin of safety one can write 5750 put option of Nifty at current premium of 7.00 thereby generating a return of around 1.5% in 2 days.
No wonder the world's most intelligent person, Albert Einstein, realized the power of compounding much before than anyone else. He once said that "Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn't, pays it". Your saved money earns money and your earned money also earns money thereby making your wealth grow at exponential rate.
India Inc preliminary advance tax payment data for second quarter of FY 2013 - 2014 suggest 7 to 8 percent growth compared to last year. While the pressure points are clearly visible in PSU banking and cement companies, Technology, private sector banks and consumer companies seems to be doing well.