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Stock markets continue to thrive for more than a week

The stocks continued to gain even on the tenth consecutive day but were dragged down by banks and reliance industries where as on the other hand the pharma stocks made a come back after it fell by 2 % in this march .

The investors from the foreign coasts continue to buy Indian stocks after the $ 3.6 billion purchase in the month of march ., and they bought equities worth Rs 717 crores , while the domestic institutional investors or DIIs sold stocks of the same amount , provisional data from the BSE .

The reliance industries fell to 0.52 % to 951.95 and SBI slipped 1.97 % to 1895.35 . ICICI bank dropped 0.59 % to 951.00 . The pharma stocks gained as banks fell with wockhard rose to 8.85 % to Rs 600.85 where as Ranbaxy rose  5.12 % to Rs 424.80 % .

 Moreover the HSBC India composite output index which maps both services as well as manufacturing, production growth slowed and service sector activities fell at a faster rate in the month . The numbers showed weakness in the economy .

The S&P BSE  sensex ended at 42.42 points lower at 22509.07 while Nifty gained 270 points during the last ten trading sessions and on this Wednesday lost 16 points to close at 6736 which as expected is just a minor correction after the continued rally for the last ten trading sessions .

Even shares of the banks fell after RBI classified the option for spreading the mark to market ( MTM) losses over the past three quarters ended on March 31, 2014 and no further extension has been allowed . The oriental bank of commerce declined to 5% to Rs 225 , while Karnataka ,Vijaya , Bank of Baroda , UCO and Central bank lost between 2% to 3 % .Another sector to watch out is the PSU bonds in which the investors have appreciation of 4 % to 7 % in their capital with in a short short span of time .

 So as of the recent trends the rate of inflation keeps continue to fall , there are rate cut chances which may begin in 2015  . As soon as we achieve higher accelerated growth with falling inflation , interest rates may be cut . So at present it does not makes sense for investors to exit investments by booking profits at this point until and unless there is a compulsion . Of course in case of selling the investors will attract short term capital gain tax as per the individual income tax slab which will only help in eroding the desired returns .