Cloud burst in the Indian stock market has left investors and the share market in India aghast. Coming on the heels of an encouraging economic numbers in January the industry and economic is poised for a modest performance in Q4 if not a sprint.

A meteoric rally of nearly 300 points in SENSEX in last fortnight heralds calisthenics in the offing on economic front ably supported by industrial production and buying. RBI already having slackened the noose around the credit market with 50 basis points reduction in CRR market has taken the cue quickly and reacted affirmatively.

Heightened activity by the FIIs has led to equally volatile appreciation in Indian Rupee which stands at a respectable INR 49 = 1 USD. Apart from enhancing the market confidence the appreciation has left the steel market in India in lurch.

Emergence of import booking seems closer than foretold barely a fortnight away. Global steel price has declined by nearly USD 40-50 per tonne in the New Year.

Cumulatively the above factors portend to weigh heavily on the domestic market with import bookings alluring. Even though the domestic long and flat market has remained primarily skinny the domestic mills have been increasing prices over the last couple of months in bid to en-cash INR insulation.

However with the cover slipping away in the aftermath of INR appreciation and declining global levels Indian shores would be haunted with imported material earlier than anticipated.

If the trend maintains import order bookings might commence by mid-February and the first cargo might sneak in by April mid.

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