With positive global cues, there will be a strong opening with up side gap and expected to remain positive for the day with some volatility during the mid- session.
Expect this rally to continue for next few trading sessions, Nifty to touch 3190 levels in the coming days provided it holds 2960 level.
Technically for the day nifty will have support at 2930/2905/2880 levels and resistance at 2980/3015/3030 levels.
BSE, NSE Stock Ticker, India
Showing posts with label investments. Show all posts
Showing posts with label investments. Show all posts
Monday, March 23, 2009
Sunday, March 22, 2009
Market OutLook 23-3-2009
The global cues are mixed with the Us market ended in red on Friday, were as the Asian markets today are trading on the positive side and our markets too will follow the Asian market will open on the higher side.
Expect some kind of volatility after the Mid –Session.
The stimulus package given by the some of the Asian countries is turning to be positive; China GDP is expected to be round 8% in he next year.
Our markets are range bound, Nifty is trading between 2570 –2830 levels for the last few trading sessions either side breakout will only can give the future direction of the market.
Technically today nifty can take support at 2786/2770/2750 and resistance at 2830/2860/2890.
If Nifty closes above 2830 level then the target for nifty is 2960 level.
Expect some kind of volatility after the Mid –Session.
The stimulus package given by the some of the Asian countries is turning to be positive; China GDP is expected to be round 8% in he next year.
Our markets are range bound, Nifty is trading between 2570 –2830 levels for the last few trading sessions either side breakout will only can give the future direction of the market.
Technically today nifty can take support at 2786/2770/2750 and resistance at 2830/2860/2890.
If Nifty closes above 2830 level then the target for nifty is 2960 level.
Thursday, March 19, 2009
Market OutLook 20-3-2009
With the negative global cues, our market will open flattish to bit negative and trade lower for the day, expect high volatility in few scrip’s due to increase in margin.
Until the market trades between 2750- 2830 levels, It’s very difficult to predict the market direction, but over all I am bearish in the coming days ahead the settlement and the general election, Look very difficult for this current rally to sustain at higer levels.
Today technically nifty can take support at 2770/2750/2730 levels and has resistance at 2815/2830/2850 levels.
On the lower side 2730 level will have a strong support and on the higher side strong resistance at 2830 levels.
Until the market trades between 2750- 2830 levels, It’s very difficult to predict the market direction, but over all I am bearish in the coming days ahead the settlement and the general election, Look very difficult for this current rally to sustain at higer levels.
Today technically nifty can take support at 2770/2750/2730 levels and has resistance at 2815/2830/2850 levels.
On the lower side 2730 level will have a strong support and on the higher side strong resistance at 2830 levels.
Wednesday, March 18, 2009
Market OutLook 19-3-2009
As the global cues are with mixed trends, The US markets were up and today the Asian markets are trading weak, Our markets are expected to open flat and trade on the higher side and shall give a clear direction once the European markets are opened.
As long as nifty dose not break and closes below the 2750 levels no need to worry, at the same time it is unable to sustain the 2830 levels.
The above two levels are the trend deciders for the market.
Today nifty can technically take support at 2750/2720 /2700 levels and resistance at 2805/2820/2840 levels.
As long as nifty dose not break and closes below the 2750 levels no need to worry, at the same time it is unable to sustain the 2830 levels.
The above two levels are the trend deciders for the market.
Today nifty can technically take support at 2750/2720 /2700 levels and resistance at 2805/2820/2840 levels.
Tuesday, March 17, 2009
Market to rally further
Wedesday,18 march 2009:
On the strong global cues our market will open on the higher side and can trade higher for the entire dayand some kind of selling can be seen in the second session, If holds the 2750 levels then no need to worry, I hope it will not break these level.
As nifty has closed above the 2750 levels which is a good sign for the rally to continue further..
Today nifty can technically get support at 2750/2730 levels and have resistance at 2800/2820 levels for the days, If hold the 2830 levels fresh rally can be seen till 2950 levels in the next two days.
On the strong global cues our market will open on the higher side and can trade higher for the entire dayand some kind of selling can be seen in the second session, If holds the 2750 levels then no need to worry, I hope it will not break these level.
As nifty has closed above the 2750 levels which is a good sign for the rally to continue further..
Today nifty can technically get support at 2750/2730 levels and have resistance at 2800/2820 levels for the days, If hold the 2830 levels fresh rally can be seen till 2950 levels in the next two days.
Monday, March 16, 2009
Market OutLook 17-3-2009
On global cues our market can see some kind of selling in the first session of trading. If Nifty holds 2750-2730 levels then no need to worry for the bulls on the upper side it will face resistance at 2800-2830 levels, above 2830 no short position please as Nifty can move to 2915 levels. Traders have to be cautious on the higher side.
Friday, March 13, 2009
Rally may not continue for long..
Our Markets are moving up for the last two days backed by the positive global cues and due to the short covering of the huge short position ahead of the F & O settlement.
I don’t expect this last rally to continue for more then next two –three trading session, If Nifty holds 2730 on Monday, then we can see another 100 points rally and will face strong resistance at 2820 levels.
As there is no much changes in the macro levels either global or domestic wise. The further weakening of rupee and FII outflow will be a major concern in the coming days.
As long as Nifty holds 2500 levels nothing to worry, If Nifty dose not respect this levels then it can come down to 2200-1850 levels and at these levels investors can start picking up quality stocks and hold it for the next three years to get a return of 200-300%.
I don’t expect this last rally to continue for more then next two –three trading session, If Nifty holds 2730 on Monday, then we can see another 100 points rally and will face strong resistance at 2820 levels.
As there is no much changes in the macro levels either global or domestic wise. The further weakening of rupee and FII outflow will be a major concern in the coming days.
As long as Nifty holds 2500 levels nothing to worry, If Nifty dose not respect this levels then it can come down to 2200-1850 levels and at these levels investors can start picking up quality stocks and hold it for the next three years to get a return of 200-300%.
Wednesday, March 11, 2009
Market OutLook 12-3-2009
Market to open with a big gap on the higher side. As global cues are pointing to positive bias for the last two days, our market is expected to do well today.
Selling is the best option at higher levels.
The real trend will be known once the IIP and Inflation data are released today.IIP data may not be favourable.
Technically Nifty may have resistance at 2650/2680/2710 levels and support at 2530/2510/2485 levels for the day.
If Nifty breaks below 2500 levels, further weakness is expected in the short term and Nifty can go down to2200 and then 1850 levels in the coming days. At 1850 bargain hunting can be done for long term.
Selling is the best option at higher levels.
The real trend will be known once the IIP and Inflation data are released today.IIP data may not be favourable.
Technically Nifty may have resistance at 2650/2680/2710 levels and support at 2530/2510/2485 levels for the day.
If Nifty breaks below 2500 levels, further weakness is expected in the short term and Nifty can go down to2200 and then 1850 levels in the coming days. At 1850 bargain hunting can be done for long term.
Thursday, February 26, 2009
Market Outlook 27-2-2009
Market to be in narrow range
Based on the global cues market is expected to open flat and will be on the narrow range for the day. Some kind of activity can be seen in the mid session of the day.
As new F & O series begins from today, Activity can be seen in the textile and sugar sectors, as the roll over has been good here.
Technically Nifty can take support at 2760 and 2730 levels and resistance at 2810 and 2831 levels for the day. Being unable to sustain the 2790 levels for the last two days, hence 2790 can be viewed as strong resistance ,If crosses and hold above this levels then buying can emerge in the market.
Traders are expected to be cautious at higher levels.
Based on the global cues market is expected to open flat and will be on the narrow range for the day. Some kind of activity can be seen in the mid session of the day.
As new F & O series begins from today, Activity can be seen in the textile and sugar sectors, as the roll over has been good here.
Technically Nifty can take support at 2760 and 2730 levels and resistance at 2810 and 2831 levels for the day. Being unable to sustain the 2790 levels for the last two days, hence 2790 can be viewed as strong resistance ,If crosses and hold above this levels then buying can emerge in the market.
Traders are expected to be cautious at higher levels.
Mutual Fund Investments
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Mutual Fund SIP works on the principle of regular investment like your recurring deposit where you put in a small periodic investment (monthly or quarterly) instead of one-time investment.
SIP allows you to pay 10 periodic investment of Rs 500 each instead of a one-time investment of Rs 5000 in a mutual fund.
Thus, you can invest in mutual fund without altering your other financial liabilities. It is essential to understand the concept of rupee cost averages and the power of compounding to better appreciate the working of SIPs.
SIP has brought mutual funds within the reach of an average person as it enables even those with tight budgets to invest Rs 500 or Rs 1000 on a regular basis in place of making a one-time investment.
While making small investments through SIP may not see appealing at first, it enables investors to get into the habit of saving. And over the years, it can really add up and give you handsome returns by investing in well performing diversified equity mutual fund scheme
A monthly SIP of Rs 2000 at the rate of 12% would grow to Rs 4.48 lacs in 10 years, Rs 9.51 lacs in 15 years and Rs 19.39 lacs in 20years. The rate of return could be even higher in a bull market.
Even for cash-rich, SIPs reduce the chance of investing at the wrong time and losing their sleep over a wrong investment decision. However, the true benefit of an SIP is derived by investing at lower levels and now the present market condition is favorable to start your SIP.
Investing through Mutual Fund SIP will be a prudent strategy to accumulate wealth over a period of time and help you to over come long term financial needs such as child's higher studies, holiday plan, purchasing house, child's marriage and your retirement plan.
Mutual Fund SIP works on the principle of regular investment like your recurring deposit where you put in a small periodic investment (monthly or quarterly) instead of one-time investment.
SIP allows you to pay 10 periodic investment of Rs 500 each instead of a one-time investment of Rs 5000 in a mutual fund.
Thus, you can invest in mutual fund without altering your other financial liabilities. It is essential to understand the concept of rupee cost averages and the power of compounding to better appreciate the working of SIPs.
SIP has brought mutual funds within the reach of an average person as it enables even those with tight budgets to invest Rs 500 or Rs 1000 on a regular basis in place of making a one-time investment.
While making small investments through SIP may not see appealing at first, it enables investors to get into the habit of saving. And over the years, it can really add up and give you handsome returns by investing in well performing diversified equity mutual fund scheme
A monthly SIP of Rs 2000 at the rate of 12% would grow to Rs 4.48 lacs in 10 years, Rs 9.51 lacs in 15 years and Rs 19.39 lacs in 20years. The rate of return could be even higher in a bull market.
Even for cash-rich, SIPs reduce the chance of investing at the wrong time and losing their sleep over a wrong investment decision. However, the true benefit of an SIP is derived by investing at lower levels and now the present market condition is favorable to start your SIP.
Investing through Mutual Fund SIP will be a prudent strategy to accumulate wealth over a period of time and help you to over come long term financial needs such as child's higher studies, holiday plan, purchasing house, child's marriage and your retirement plan.
Market at close 26-2-2009
Firm opening of the European markets and higher US index futures helped the domestic bourses extend recovery in mid-afternoon trade. Hopes of a further cut in policy rates by the Reserve Bank of India aided the recovery on the domestic bourses. Index heavyweight Reliance Industries and Infosys Technologies extended gains and ICICI Bank cut losses. But Ranbaxy Laboratories fell more than 17% after US regulators said one of its plants in India had falsified data and test results. The BSE 30-share Sensex was down 25.56 points, or 0.29%, off 90 points from the day's low.
The market was volatile. After a steady opening, the market weakened in morning trade on concerns of higher borrowing costs for Indian Inc. It came off the lower level shortly. However, a sharp slide in Chinese markets weighed on the domestic bourses for a while in early afternoon trade. The market soon shrugged of the sharp slide in Chinese stocks as lower inflation raised rate cut hopes. The recovery gathered steam on firm opening of the European markets
Volatility may remain towards the close of trading ahead of the expiry of of February 2009 derivatives contracts. As per reports, rollover of Nifty positions from February 2009 series to March 2009 series stood at 62% while marketwide rollover of positions was 57%, as on Wednesday, 25 February 2009.
There are expectations that the Reserve Bank of India (RBI) will cut interest rates further to support faltering growth. Inflation rate slowed to 3.36% in mid-February 2009, the lowest in nearly 15 months, which would give the central bank more elbow room to loosen monetary policy. As per reports, RBI governor D Subbarao will meet select heads of banks on Friday, 27 February 2009, to hold discussions on issues like credit flow and liquidity conditions.
But concerns about rising borrowing costs for Indian corporates weighed on the market as fears a downgrade of India's sovereign rating by global rating agencies loom large. Raging agency S&P on Tuesday, 24 February 2009, cut its outlook on India's long-term sovereign credit rating to negative from stable citing worsening government finances, which could raise Indian firms' overseas borrowing costs and weaken the rupee. Moody's Economy.com on Wednesday, 25 February 2009, said India's wider fiscal deficit will boost funding costs and weaken investor confidence.
The Union Cabinet today raised the cost of living allowance paid to government employees to 22% of basic salary, from an earlier 16%, Home Minister P Chidambaram said. The move would cost Rs 3514 crore ($700 million) to the government exchequer.
In another decision, the Cabinet allowed state government to run up higher fiscal deficits.
The global financial sector crisis and recession in key global economies have pushed economic growth in India down to a six-year low. The Central Statistical Organisation (CSO) has pegged India's projected GDP growth for the year ending March 2009 at 7.1%, the slowest in six years and below the previous year's 9% rise. S&P, however, feels that India's medium term growth prospects remain strong.
Trading in US index futures indicated that the Dow could rise 68 points at the opening bell on Thursday, 26 February 2009.
European shares rose in early trade on Thursday, snapping a four-day losing streak, as investors digested a flood of results and welcomed a UK government insurance scheme for banks' assets. The key benchmark indices in France, Germany and UK were up by between 1.57% to 2.06%.
Asian stocks edged lower on Thursday after an early rally fizzled and investors found few incentives to make long-term bets with economic and corporate profit prospects worsening. Shanghai Composite index was down 3.87%. Key indices in Japan, South Korea, Singapore and Hong Kong were down by between 0.04% to 1.15%.
US stocks made a strong intraday bounce back on Wednesday, 25 February 2009. The Dow Jones Industrial Average, which had been off nearly 200 points earlier in the session, ended the day down 80.05 points, or 1.09%, at 7270.89. US bank stocks rose after US officials unveiled details of the Treasury's plan to convert stakes to common stock, although the wider index remained anchored by a bleak housing report from The National Association of Realtors.
At 14:26 IST, the BSE 30-share Sensex was down 25.56 points, or 0.29%, to 8,876.32. At the day's high of 8,905.56 Sensex gained 3 points in early trade. At the day's low of 8,788.32 the Sensex lost 114.24 points in mid-morning trade.
The S&P CNX Nifty was down 1.45 points, or 0.05%, to 2,761.05.
The market breadth, indicating the overall health of the market, was weak on BSE with 913 shares advancing as compared with 1,371 that declined. A total of 81 shares remained unchanged.
From the 30 share Sensex pack 17 stocks rose while rest fell.
Oil exploration and production firms rose as they stand to benefit from lower service tax on exploration & production activities which currently stands at 12.36%. India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) rose 0.91% to Rs 1,277.50. The stock came off the day's low of Rs 1,252.40.
India's largest oil exploration firm by sales ONGC rose 0.57% as crude oil prices surged over 6% on the New York Mercantile Exchange on Wednesday, 25 February 2009.
Outsourcing focussed IT stocks gained as rupee tumbled against the dollar. India's second largest software services exporter Infosys Technologies rose 1.05% to Rs 1,228.60 off the day's low of Rs 1,200.55. Its ADR slipped 0.65% overnight. India's third largest software services exporter, Wipro fell 1.36% to Rs 214.80, off the day's low of Rs 213.30. Its ADR fell 1.15% overnight
India's largest software services exporter by sales TCS rose 1.59% to Rs 487.25, off the day's low of Rs 477.20 after it said on Thursday Singapore Airlines had extended an IT services contract for three years.
The Indian rupee tumbled against the dollar as higher oil prices spurred demand for dollars from importers, while mixed Asian shares offered little comfort. The partially convertible rupee was at 50.24, weaker than Wednesday's close of 49.96/97. A weak rupee boosts revenues of IT firms in rupee terms as IT companies earn a lion's share of revenue from exports.
There have been concerns of cut back in technology spend by global firms amid a recession in the US economy and due to the global financial sector crisis. IT firms derive a lion's share of revenue from exports to US.
Some of the FMCG stocks rose on defensive buying. ITC, Dabur India, Marico, United Spirits and Tata Tea rose by between 0.17% to 3.3%.
Auto stocks extended recent gains on cut in excise duty by the government on Tuesday, 24 February 2009. India's largest commercial vehicle maker by sales Tata Motors jumped 2.5% after company said bookings for its Rs 1-lakh car Naco will commence from the second week of April 2009. India's second largest commercial vehicle maker by sales Ashok Leyland rose 4.26%.
Other Auto stocks, Hero Honda Motors Maruti Suzuki India and Mahindra & Mahindra rose by between 1.42% to 1.79%.
Ashok Leyland on Wednesday, 25 February 2009 said it had decided to pass on the full benefit of the tax reduction to customers, and that the average prices of its vehicles will be lowered by Rs 16,000. Tata Motors also reportedly cut vehicle prices by about 2%.
However, price cut alone is unlikely to revive sluggish demand for trucks. Currently, the commercial vehicles (CV) industry is struggling to source retail finance as banks and other financial institutions have refrained from lending to the sector. According the latest report from the Society of Indian Automobile Manufacturers (Siam), sales in the CV industry fell by almost 20% at 3,11,283 units for the period April 2008-January 2009 over the period April 2007-January 2008. High interest rates and a slowdown in the economy have impacted demand for trucks.
India's largest drugmaker by sales Ranbaxy Laboratories fell 17.25% after an investigation by the US Food and Drug Administration (FDA) found that Ranbaxy had falsified data and test results of medicines manufactured at its Himachal Pradesh (HP) facility to obtain marketing approval in the United States. The stock was the major loser from the Sensex pack.
India's largest engineering and construction firm by sales Larsen & Toubro rose 0.69% on bagging new orders aggregating to Rs 1162 crore.
Banking stocks were volatile caught between fears of rising defaults in a weakening economy and hopes a further fall in interest rates may boost lending growth. India's largest private sector bank by net profit ICICI Bank fell 4.49% to Rs 325.15, off the day's low of Rs 318.60. Its American Depository Receipts (ADR) slipped 3.97% on Wednesday, 25 February 2009. Recently, Life Insurance Corporation of India hiked its stake in ICICI Bank by 2.04% to 9.38%.
India's second largest private sector bank by net profit HDFC Bank fell 0.6% to Rs 859, off the day's low of Rs 842.20. Its ADR fell 5.21% on Wednesday, 25 February 2009.
India's largest bank in terms of assets and branch network State Bank of India fell 0.75% to Rs 1,025.55, off the day's low of Rs 1,015.50. The Indian government on Tuesday 24 February 2009 introduced a bill in Parliament which will enable it to increase the capital base of State Bank of India's subsidiaries and issue preference and bonus shares of these entities.
PSU bank stocks, Indian Overseas Bank, Union Bank of India, Bank of Baroda, Bank of India fell by between 0.85% to 2.54%.
As per the latest data by the Reserve Bank of India, the banking sector lent over Rs 10000 crore in the fortnight ended 13 February 2009. Food credit rose Rs 547.82 crore, while non-food credit rose went up by Rs 9124.95 crore. This is the highest fortnightly growth in bank loans since November 2007.
Despite a steep cut in policy rates in India since October 2008, there has not been a commensurate reduction in lending rates by banks as fears of rising bad loans have made banks cautious in increasing advances.
India's largest realty player by market capitalization DLF slumped 0.81% to Rs 153.40 after the Income-Tax department reportedly ordered a special audit of the accounts of the real estate giant. Nevertheless, the stock came off the day's low of Rs 146.20.
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The market was volatile. After a steady opening, the market weakened in morning trade on concerns of higher borrowing costs for Indian Inc. It came off the lower level shortly. However, a sharp slide in Chinese markets weighed on the domestic bourses for a while in early afternoon trade. The market soon shrugged of the sharp slide in Chinese stocks as lower inflation raised rate cut hopes. The recovery gathered steam on firm opening of the European markets
Volatility may remain towards the close of trading ahead of the expiry of of February 2009 derivatives contracts. As per reports, rollover of Nifty positions from February 2009 series to March 2009 series stood at 62% while marketwide rollover of positions was 57%, as on Wednesday, 25 February 2009.
There are expectations that the Reserve Bank of India (RBI) will cut interest rates further to support faltering growth. Inflation rate slowed to 3.36% in mid-February 2009, the lowest in nearly 15 months, which would give the central bank more elbow room to loosen monetary policy. As per reports, RBI governor D Subbarao will meet select heads of banks on Friday, 27 February 2009, to hold discussions on issues like credit flow and liquidity conditions.
But concerns about rising borrowing costs for Indian corporates weighed on the market as fears a downgrade of India's sovereign rating by global rating agencies loom large. Raging agency S&P on Tuesday, 24 February 2009, cut its outlook on India's long-term sovereign credit rating to negative from stable citing worsening government finances, which could raise Indian firms' overseas borrowing costs and weaken the rupee. Moody's Economy.com on Wednesday, 25 February 2009, said India's wider fiscal deficit will boost funding costs and weaken investor confidence.
The Union Cabinet today raised the cost of living allowance paid to government employees to 22% of basic salary, from an earlier 16%, Home Minister P Chidambaram said. The move would cost Rs 3514 crore ($700 million) to the government exchequer.
In another decision, the Cabinet allowed state government to run up higher fiscal deficits.
The global financial sector crisis and recession in key global economies have pushed economic growth in India down to a six-year low. The Central Statistical Organisation (CSO) has pegged India's projected GDP growth for the year ending March 2009 at 7.1%, the slowest in six years and below the previous year's 9% rise. S&P, however, feels that India's medium term growth prospects remain strong.
Trading in US index futures indicated that the Dow could rise 68 points at the opening bell on Thursday, 26 February 2009.
European shares rose in early trade on Thursday, snapping a four-day losing streak, as investors digested a flood of results and welcomed a UK government insurance scheme for banks' assets. The key benchmark indices in France, Germany and UK were up by between 1.57% to 2.06%.
Asian stocks edged lower on Thursday after an early rally fizzled and investors found few incentives to make long-term bets with economic and corporate profit prospects worsening. Shanghai Composite index was down 3.87%. Key indices in Japan, South Korea, Singapore and Hong Kong were down by between 0.04% to 1.15%.
US stocks made a strong intraday bounce back on Wednesday, 25 February 2009. The Dow Jones Industrial Average, which had been off nearly 200 points earlier in the session, ended the day down 80.05 points, or 1.09%, at 7270.89. US bank stocks rose after US officials unveiled details of the Treasury's plan to convert stakes to common stock, although the wider index remained anchored by a bleak housing report from The National Association of Realtors.
At 14:26 IST, the BSE 30-share Sensex was down 25.56 points, or 0.29%, to 8,876.32. At the day's high of 8,905.56 Sensex gained 3 points in early trade. At the day's low of 8,788.32 the Sensex lost 114.24 points in mid-morning trade.
The S&P CNX Nifty was down 1.45 points, or 0.05%, to 2,761.05.
The market breadth, indicating the overall health of the market, was weak on BSE with 913 shares advancing as compared with 1,371 that declined. A total of 81 shares remained unchanged.
From the 30 share Sensex pack 17 stocks rose while rest fell.
Oil exploration and production firms rose as they stand to benefit from lower service tax on exploration & production activities which currently stands at 12.36%. India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) rose 0.91% to Rs 1,277.50. The stock came off the day's low of Rs 1,252.40.
India's largest oil exploration firm by sales ONGC rose 0.57% as crude oil prices surged over 6% on the New York Mercantile Exchange on Wednesday, 25 February 2009.
Outsourcing focussed IT stocks gained as rupee tumbled against the dollar. India's second largest software services exporter Infosys Technologies rose 1.05% to Rs 1,228.60 off the day's low of Rs 1,200.55. Its ADR slipped 0.65% overnight. India's third largest software services exporter, Wipro fell 1.36% to Rs 214.80, off the day's low of Rs 213.30. Its ADR fell 1.15% overnight
India's largest software services exporter by sales TCS rose 1.59% to Rs 487.25, off the day's low of Rs 477.20 after it said on Thursday Singapore Airlines had extended an IT services contract for three years.
The Indian rupee tumbled against the dollar as higher oil prices spurred demand for dollars from importers, while mixed Asian shares offered little comfort. The partially convertible rupee was at 50.24, weaker than Wednesday's close of 49.96/97. A weak rupee boosts revenues of IT firms in rupee terms as IT companies earn a lion's share of revenue from exports.
There have been concerns of cut back in technology spend by global firms amid a recession in the US economy and due to the global financial sector crisis. IT firms derive a lion's share of revenue from exports to US.
Some of the FMCG stocks rose on defensive buying. ITC, Dabur India, Marico, United Spirits and Tata Tea rose by between 0.17% to 3.3%.
Auto stocks extended recent gains on cut in excise duty by the government on Tuesday, 24 February 2009. India's largest commercial vehicle maker by sales Tata Motors jumped 2.5% after company said bookings for its Rs 1-lakh car Naco will commence from the second week of April 2009. India's second largest commercial vehicle maker by sales Ashok Leyland rose 4.26%.
Other Auto stocks, Hero Honda Motors Maruti Suzuki India and Mahindra & Mahindra rose by between 1.42% to 1.79%.
Ashok Leyland on Wednesday, 25 February 2009 said it had decided to pass on the full benefit of the tax reduction to customers, and that the average prices of its vehicles will be lowered by Rs 16,000. Tata Motors also reportedly cut vehicle prices by about 2%.
However, price cut alone is unlikely to revive sluggish demand for trucks. Currently, the commercial vehicles (CV) industry is struggling to source retail finance as banks and other financial institutions have refrained from lending to the sector. According the latest report from the Society of Indian Automobile Manufacturers (Siam), sales in the CV industry fell by almost 20% at 3,11,283 units for the period April 2008-January 2009 over the period April 2007-January 2008. High interest rates and a slowdown in the economy have impacted demand for trucks.
India's largest drugmaker by sales Ranbaxy Laboratories fell 17.25% after an investigation by the US Food and Drug Administration (FDA) found that Ranbaxy had falsified data and test results of medicines manufactured at its Himachal Pradesh (HP) facility to obtain marketing approval in the United States. The stock was the major loser from the Sensex pack.
India's largest engineering and construction firm by sales Larsen & Toubro rose 0.69% on bagging new orders aggregating to Rs 1162 crore.
Banking stocks were volatile caught between fears of rising defaults in a weakening economy and hopes a further fall in interest rates may boost lending growth. India's largest private sector bank by net profit ICICI Bank fell 4.49% to Rs 325.15, off the day's low of Rs 318.60. Its American Depository Receipts (ADR) slipped 3.97% on Wednesday, 25 February 2009. Recently, Life Insurance Corporation of India hiked its stake in ICICI Bank by 2.04% to 9.38%.
India's second largest private sector bank by net profit HDFC Bank fell 0.6% to Rs 859, off the day's low of Rs 842.20. Its ADR fell 5.21% on Wednesday, 25 February 2009.
India's largest bank in terms of assets and branch network State Bank of India fell 0.75% to Rs 1,025.55, off the day's low of Rs 1,015.50. The Indian government on Tuesday 24 February 2009 introduced a bill in Parliament which will enable it to increase the capital base of State Bank of India's subsidiaries and issue preference and bonus shares of these entities.
PSU bank stocks, Indian Overseas Bank, Union Bank of India, Bank of Baroda, Bank of India fell by between 0.85% to 2.54%.
As per the latest data by the Reserve Bank of India, the banking sector lent over Rs 10000 crore in the fortnight ended 13 February 2009. Food credit rose Rs 547.82 crore, while non-food credit rose went up by Rs 9124.95 crore. This is the highest fortnightly growth in bank loans since November 2007.
Despite a steep cut in policy rates in India since October 2008, there has not been a commensurate reduction in lending rates by banks as fears of rising bad loans have made banks cautious in increasing advances.
India's largest realty player by market capitalization DLF slumped 0.81% to Rs 153.40 after the Income-Tax department reportedly ordered a special audit of the accounts of the real estate giant. Nevertheless, the stock came off the day's low of Rs 146.20.
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Tuesday, February 24, 2009
Market OutLook 25-2-2009
Markets to be volatile
Market is expected open higher and ahead of F& O expiry volatile movements will be there. Stock specific activity will be seen and still short position is there in the system and hence market is expected to go up. Traders can sell at higher level with strict stop loss. Technically Nifty can take support at 2700 and 2680 levels and resistance at 2760 and 2790 levels. Maintain a cautious approach in the coming days Nifty can fall further, If trades below 2700 continuously for two days free fall is expected and Nifty touch 2500 levels.
Market is expected open higher and ahead of F& O expiry volatile movements will be there. Stock specific activity will be seen and still short position is there in the system and hence market is expected to go up. Traders can sell at higher level with strict stop loss. Technically Nifty can take support at 2700 and 2680 levels and resistance at 2760 and 2790 levels. Maintain a cautious approach in the coming days Nifty can fall further, If trades below 2700 continuously for two days free fall is expected and Nifty touch 2500 levels.
Friday, February 20, 2009
Market at close - 20-2-2009
Sell-off in Heavyweights
Fresh selling in index pivotals pulled key benchmark indices to day's low in mid-afternoon trade. The barometer index BSE Sensex which had fallen below the psychologically vital 9,000 level earlier in the day, fell below 8,800 level in mid-afternoon trade. The Sensex was down 248.23 points, or 2.75%, to 8,797.65. It came off the lower level after a sharp slide. The Sensex was off 34.57 points from the day's low.
The selling on the domestic bourses today, 20 February 2009, was broad based with all the sectoral indices on BSE in the red. Weak start of European bourses and weak US index futures weighted on the domestic bourses.
The market opened on a weak note on weak global markets. An intermittent recovery from lower level was witnessed during the day. The recovery from lower level in early afternoon trade was triggered by Finance Minister Pranab Mukherjee's comments that the government will provide additional resources to stimulate demand and provide more help to key sectors such as housing, infrastructure and real estate. However, the intraday recovery proved short-lived as the market came off the higher level later.
The government has so far announced two stimulus packages including tax cuts and the capital injections for banks to shield the domestic economy from the impact of the global financial sector crisis and recession in key global economies.
Meanwhile Commerce minister Kamal Nath is likely to announce an export booster package later this month which would address some of the crucial concerns of the exporters. The sops under consideration include simplification of rules for service tax refund, extension of time given to exporters to meet export obligation and an increase in rates of input duty reimbursement schemes like drawback and DEPB for some sectors.
But trading in US index futures which showed the Dow could fall 112 points at the opening bell on Friday, 20 February 2009 and sustained selling by foreign institutional investors (FIIs), whose outflow in calendar year 2009 has totaled Rs 5094.30 crore (till 18 February 2009), weighed on the sentiment on the bourses after the interim budget 2009-10 presented in parliament on Monday, 16 February 2009 proved to be a non-event disappointing marketmen.
According to provisional data on NSE, FIIs were net sellers worth Rs 363.48 crore while mutual funds bought shares worth Rs 108.44 crore on Thursday, 19 February 2009.
European shares fell sharply on Friday, 20 February 2009, with banks the worst performers, as investors continued to fret about the outlook for the global economy. Key benchmark indices in UK, Germany and France were down by between 1.86% and 2.92%.
Asian markets declined today, 20 February 2009, after Wall Street tumbled to six-year low on Thursday, 19 February 2009, as a gloomy US unemployment data reinforced fears the world's largest economy is in a severe slump. Key benchmark indices in Hong Kong, Japan, Singapore, South Korea and Taiwan were down by between 1.76% and 3.72%. However, China's Shanghai Composite rose 1.54%.
US markets tumbled on Thursday, 19 February 2009 on mounting concerns about the fate of major banks and signs that the recession is deepening, pushing the Dow to its lowest level in more than six years. The Dow Jones industrial average lost 89.68 points, or 1.19%, at 7,465.95. The Standard & Poor's 500 Index fell 9.48 points, or 1.2%, at 778.94. The Nasdaq Composite index shed 25.15 points, or 1.71%, at 1,442.82.
US government data showed a record number of continuing unemployment claims, at nearly 5 million, and a surprisingly sharp drop in manufacturing in the mid-Atlantic states.
At 14:25 IST, the BSE 30-share Sensex was down 248.23 points, or 2.75%, to 8,797.65. The Sensex opened 98.85 points lower at 8,943.78, also its day's high. At the day's low of 8,763.08, the Sensex lost 279.55 points in mid-afternoon trade.
The S&P CNX Nifty lost 68.60 points, or 2.46%, to 2,720.05
The market breadth, indicating the overall health of the market, was weak on BSE with 1653 shares declining as compared with 620 that advanced. A total of 95 shares remained unchanged.
BSE clocked a turnover of Rs 1899 crore by 14:25 IST as compared with Rs 1374 crore by 13:25 IST.
All the members from the 30-share Sensex pack were trading lower. TCS (down 5.11%), Wipro (down 3.83%), and Mahindra & Mahindra (down 3.41%), though down, outperformed the Sensex on defensive buying.
Banking stocks were hard hit as fears of rising defaults in a weakening economy and overnight fall in American Depository Receipts (ADRs), offset hopes of rate cuts from the Reserve Bank of India (RBI). India's largest private sector bank by net profit ICICI Bank plunged 7.59% to Rs 334.40 on a 1.36% fall in its ADR on Thursday, 19 February 2009. It was the top loser from the Sensex pack.
India's second largest private sector bank by net profit HDFC Bank lost 2.12% to Rs 866.10 as its ADR fell 0.26% on Thursday, 19 February 2009. After market hours on 19 February 2009, the bank on a private placement basis issued unsecured, non-convertible, redeemable subordinated bonds in the nature of debentures towards tier - II capital as with upper tier - II bonds for an amount aggregating Rs 200 crore and lower tier - II bonds for an amount aggregating Rs 150 crore.
India's largest bank in terms of assets and branch network State Bank of India shed 1.85% to Rs 1040.10.
India's largest dedicated housing finance company by total income Housing Development Finance Corporation fell 3.67% to Rs 1341.50 as the company expects 2009/10 loan growth at about 20%, slightly lower than the previous year's rise, as property demand falls.
Inflation rose at the lowest level in 13-months at 3.92% in the year through 7 February 2009, much lower than previous week's annual rise of 4.39%, data released by the government on Thursday, 19 February 2009, showed. Falling inflation provides room for the Reserve Bank of India (RBI) to cut interest rates further to shield the domestic economy from the global financial sector crisis and recession in key global economies.
Only on Wednesday, 18 February 2009, the Reserve Bank of India Governor D Subbarao said that there is room to cut interest rates further. The statement comes at a time when the market is expecting further action from the central bank.
Market men see a bigger role for RBI to shield the domestic economy from the global financial sector crisis and recession in key global economies in the coming months as election code will be in force by the end of the month which means that there cannon be any policy action from the government.
India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) shed 3.69% to Rs 1245.90 on fears a worsening global economy will hit demand for petrochemicals.
India's second largest cellular services provider by sales Reliance Communications (RCom) slumped 5.10% to Rs 154.65 on reports the government on Thursday, 19 February 2009 reportedly informed the Parliament that it will do a special audit on the books of RCom and its subsidiaries over allegations that the telecommunications company had diverted revenues earned from its mobile services to a subsidiary to bring down the total amount it had to pay to the government as licence fee and spectrum charge.
India's largest private sector power generation firm by sales Reliance Infrastructure slipped 3.70% to Rs 489.80. The finance ministry late evening on 18 February 2009 reportedly told Parliament that companies Reliance Infrastructure and Reliance Petroleum were being investigated for alleged violation of norms governing insider trading and overseas borrowings, respectively. Reliance Petroleum fell 2.01% to Rs 78.10
Satyam Computer Service advanced 1.62% to Rs 47.05 after it won approval from the Company Law Board (CLB) to bring on board a strategic investor needed to ensure the survival of the scam-tainted software outsourcer.
But India's largest engineering and construction firm by sales Larsen & Toubro fell 3.38% to Rs 619.10 after its chief A M Naik said it will decide on Satyam deal after evaluating the Company Law Board's order on the bidding process for the fraud-hit IT firm. L&T is the single largest shareholder in Satyam with a 12% stake.
India's largest power equipment maker by sales Bharat Heavy Electrical (Bhel) fell 2.11% to Rs 1353.10. The company has reportedly signed an agreement to float a joint venture with US-based technology provider General Electric (GE) to manufacture diesel locomotives for Indian Railways.
India's largest copper maker by sales Sterlite Industries India slipped 3.27% to Rs 248.10 as copper stockpiles climbed on the London Metal Exchange again and a grim global economic picture stoked demand concerns.
Educomp Solutions tumbled 13.73% to Rs 1739.10 after reports the market regulator Securities & Exchange Board of India (Sebi) is probing the dealings in the shares of education software firm on bourses.
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Fresh selling in index pivotals pulled key benchmark indices to day's low in mid-afternoon trade. The barometer index BSE Sensex which had fallen below the psychologically vital 9,000 level earlier in the day, fell below 8,800 level in mid-afternoon trade. The Sensex was down 248.23 points, or 2.75%, to 8,797.65. It came off the lower level after a sharp slide. The Sensex was off 34.57 points from the day's low.
The selling on the domestic bourses today, 20 February 2009, was broad based with all the sectoral indices on BSE in the red. Weak start of European bourses and weak US index futures weighted on the domestic bourses.
The market opened on a weak note on weak global markets. An intermittent recovery from lower level was witnessed during the day. The recovery from lower level in early afternoon trade was triggered by Finance Minister Pranab Mukherjee's comments that the government will provide additional resources to stimulate demand and provide more help to key sectors such as housing, infrastructure and real estate. However, the intraday recovery proved short-lived as the market came off the higher level later.
The government has so far announced two stimulus packages including tax cuts and the capital injections for banks to shield the domestic economy from the impact of the global financial sector crisis and recession in key global economies.
Meanwhile Commerce minister Kamal Nath is likely to announce an export booster package later this month which would address some of the crucial concerns of the exporters. The sops under consideration include simplification of rules for service tax refund, extension of time given to exporters to meet export obligation and an increase in rates of input duty reimbursement schemes like drawback and DEPB for some sectors.
But trading in US index futures which showed the Dow could fall 112 points at the opening bell on Friday, 20 February 2009 and sustained selling by foreign institutional investors (FIIs), whose outflow in calendar year 2009 has totaled Rs 5094.30 crore (till 18 February 2009), weighed on the sentiment on the bourses after the interim budget 2009-10 presented in parliament on Monday, 16 February 2009 proved to be a non-event disappointing marketmen.
According to provisional data on NSE, FIIs were net sellers worth Rs 363.48 crore while mutual funds bought shares worth Rs 108.44 crore on Thursday, 19 February 2009.
European shares fell sharply on Friday, 20 February 2009, with banks the worst performers, as investors continued to fret about the outlook for the global economy. Key benchmark indices in UK, Germany and France were down by between 1.86% and 2.92%.
Asian markets declined today, 20 February 2009, after Wall Street tumbled to six-year low on Thursday, 19 February 2009, as a gloomy US unemployment data reinforced fears the world's largest economy is in a severe slump. Key benchmark indices in Hong Kong, Japan, Singapore, South Korea and Taiwan were down by between 1.76% and 3.72%. However, China's Shanghai Composite rose 1.54%.
US markets tumbled on Thursday, 19 February 2009 on mounting concerns about the fate of major banks and signs that the recession is deepening, pushing the Dow to its lowest level in more than six years. The Dow Jones industrial average lost 89.68 points, or 1.19%, at 7,465.95. The Standard & Poor's 500 Index fell 9.48 points, or 1.2%, at 778.94. The Nasdaq Composite index shed 25.15 points, or 1.71%, at 1,442.82.
US government data showed a record number of continuing unemployment claims, at nearly 5 million, and a surprisingly sharp drop in manufacturing in the mid-Atlantic states.
At 14:25 IST, the BSE 30-share Sensex was down 248.23 points, or 2.75%, to 8,797.65. The Sensex opened 98.85 points lower at 8,943.78, also its day's high. At the day's low of 8,763.08, the Sensex lost 279.55 points in mid-afternoon trade.
The S&P CNX Nifty lost 68.60 points, or 2.46%, to 2,720.05
The market breadth, indicating the overall health of the market, was weak on BSE with 1653 shares declining as compared with 620 that advanced. A total of 95 shares remained unchanged.
BSE clocked a turnover of Rs 1899 crore by 14:25 IST as compared with Rs 1374 crore by 13:25 IST.
All the members from the 30-share Sensex pack were trading lower. TCS (down 5.11%), Wipro (down 3.83%), and Mahindra & Mahindra (down 3.41%), though down, outperformed the Sensex on defensive buying.
Banking stocks were hard hit as fears of rising defaults in a weakening economy and overnight fall in American Depository Receipts (ADRs), offset hopes of rate cuts from the Reserve Bank of India (RBI). India's largest private sector bank by net profit ICICI Bank plunged 7.59% to Rs 334.40 on a 1.36% fall in its ADR on Thursday, 19 February 2009. It was the top loser from the Sensex pack.
India's second largest private sector bank by net profit HDFC Bank lost 2.12% to Rs 866.10 as its ADR fell 0.26% on Thursday, 19 February 2009. After market hours on 19 February 2009, the bank on a private placement basis issued unsecured, non-convertible, redeemable subordinated bonds in the nature of debentures towards tier - II capital as with upper tier - II bonds for an amount aggregating Rs 200 crore and lower tier - II bonds for an amount aggregating Rs 150 crore.
India's largest bank in terms of assets and branch network State Bank of India shed 1.85% to Rs 1040.10.
India's largest dedicated housing finance company by total income Housing Development Finance Corporation fell 3.67% to Rs 1341.50 as the company expects 2009/10 loan growth at about 20%, slightly lower than the previous year's rise, as property demand falls.
Inflation rose at the lowest level in 13-months at 3.92% in the year through 7 February 2009, much lower than previous week's annual rise of 4.39%, data released by the government on Thursday, 19 February 2009, showed. Falling inflation provides room for the Reserve Bank of India (RBI) to cut interest rates further to shield the domestic economy from the global financial sector crisis and recession in key global economies.
Only on Wednesday, 18 February 2009, the Reserve Bank of India Governor D Subbarao said that there is room to cut interest rates further. The statement comes at a time when the market is expecting further action from the central bank.
Market men see a bigger role for RBI to shield the domestic economy from the global financial sector crisis and recession in key global economies in the coming months as election code will be in force by the end of the month which means that there cannon be any policy action from the government.
India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) shed 3.69% to Rs 1245.90 on fears a worsening global economy will hit demand for petrochemicals.
India's second largest cellular services provider by sales Reliance Communications (RCom) slumped 5.10% to Rs 154.65 on reports the government on Thursday, 19 February 2009 reportedly informed the Parliament that it will do a special audit on the books of RCom and its subsidiaries over allegations that the telecommunications company had diverted revenues earned from its mobile services to a subsidiary to bring down the total amount it had to pay to the government as licence fee and spectrum charge.
India's largest private sector power generation firm by sales Reliance Infrastructure slipped 3.70% to Rs 489.80. The finance ministry late evening on 18 February 2009 reportedly told Parliament that companies Reliance Infrastructure and Reliance Petroleum were being investigated for alleged violation of norms governing insider trading and overseas borrowings, respectively. Reliance Petroleum fell 2.01% to Rs 78.10
Satyam Computer Service advanced 1.62% to Rs 47.05 after it won approval from the Company Law Board (CLB) to bring on board a strategic investor needed to ensure the survival of the scam-tainted software outsourcer.
But India's largest engineering and construction firm by sales Larsen & Toubro fell 3.38% to Rs 619.10 after its chief A M Naik said it will decide on Satyam deal after evaluating the Company Law Board's order on the bidding process for the fraud-hit IT firm. L&T is the single largest shareholder in Satyam with a 12% stake.
India's largest power equipment maker by sales Bharat Heavy Electrical (Bhel) fell 2.11% to Rs 1353.10. The company has reportedly signed an agreement to float a joint venture with US-based technology provider General Electric (GE) to manufacture diesel locomotives for Indian Railways.
India's largest copper maker by sales Sterlite Industries India slipped 3.27% to Rs 248.10 as copper stockpiles climbed on the London Metal Exchange again and a grim global economic picture stoked demand concerns.
Educomp Solutions tumbled 13.73% to Rs 1739.10 after reports the market regulator Securities & Exchange Board of India (Sebi) is probing the dealings in the shares of education software firm on bourses.
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Thursday, February 19, 2009
Market Outlook 20-2-2009
With the negative global cues our market is expected to open weak. Huge volatility is expected due long holiday ahead and the market will open on next Tuesday only.
Market expected to end in red for the day. Technically Nifty can take support at 2770 and 2750 levels and resistance at 2810 and 2826 levels. Nifty below 2750 will fall sharply.
Market expected to end in red for the day. Technically Nifty can take support at 2770 and 2750 levels and resistance at 2810 and 2826 levels. Nifty below 2750 will fall sharply.
Wednesday, February 18, 2009
Gold Zooms
Gold zooms to Rs 15,650
February 18, 2009
In these trying times when the global economy is reeling under a recession and investors are losing billions in the stock markets, gold has proved its mettle as a healthy investment option.
The price of the yellow metal surged to set a new peak at Rs 15,650 per 10 gram in opening trade in New Delhi on February 19 on brisk buying triggered by a firming global trend.
The precious metal, which is on a record setting spree for the last few sessions, shot up by Rs 230 to Rs 15,650 per 10 gram in tandem with its continuous rise in Asia since July.
Source:Rediffnews
February 18, 2009
In these trying times when the global economy is reeling under a recession and investors are losing billions in the stock markets, gold has proved its mettle as a healthy investment option.
The price of the yellow metal surged to set a new peak at Rs 15,650 per 10 gram in opening trade in New Delhi on February 19 on brisk buying triggered by a firming global trend.
The precious metal, which is on a record setting spree for the last few sessions, shot up by Rs 230 to Rs 15,650 per 10 gram in tandem with its continuous rise in Asia since July.
Source:Rediffnews
Nifty gains in choppy session-18-2-2009
Key benchmark indices saw divergent trend in what was a highly volatile trading session. Index heavyweight Reliance Industries influenced Sensex's journey throughout the day. Weak global cues played the spoilsport pulling the market lower for third straight day. Recovery in some Asian indices, higher US index futures, and comments of the central bank governor which stoked expectations of further cut in interest rates boosted the domestic bourses in intra-day trade. The BSE 30-share Sensex provisionally fell 16.10 points, or 0.17%, above 89.82 points from the day's low but off 93.55 points from the day's high.
Volatility was high. The market tumbled in opening trade mirroring a fall in global stocks caused by worsening world economic situation and worries about the global banking system. Volatility was high with the market alternatively moving between positive and negative zone. But the market soon cut losses as investors chased bargains in the battered market that had dropped 6.2% in the previous two sessions on disappointment from Monday's (16 February 2009) interim general budget and on weak global stocks. It weakened again later on weakness in global stocks.
The market cut losses in early afternoon trade on higher US index futures. It moved into positive zone after the Reserve Bank of India (RBI) governor D Subbarao said the impact of the global recession on India was sharper than expected. His comments stoked speculation of more interest rates cuts to shield the domestic economy from the global financial sector crisis and recession in key global economies.
Market men see a bigger role for RBI in the coming months as election code will be in force by the end of the month which means that there cannon be any policy action from the government. Once the model code of conduct comes into force after the announcement of poll dates, any announcement by the government will be subject to Election Commission's scrutiny.
The EC is likely to announce the poll date for the parliamentary elections by the end of this month. The elections are likely to be held in April-May 2009
Meanwhile, the Centre today sought parliament's approval for Rs 10765 crore in extra spending for this fiscal year. In its interim budget the government said the fiscal deficit is seen at 6% of GDP at end 2008-09, far higher than the initial target of 2.5% set for the current year.
But the deteriorating fiscal position of the government has raised fears of downgrade of India's sovereign rating by international ratings agencies. Both Standard & Poor's and Fitch Ratings have already indicated that they are likely to lower the country's credit rating. India's fiscal deficit is one of the highest in the world and the two stimulus packages announced in recent months to shore up sagging growth have put pressure on finances, while tax collections have slowed sharply. Standard and Poor's currently rates India's local currency rating at BBB- (minus), the lowest investment-grade level, with a stable outlook. Fitch has a similar rating but with a negative outlook, while Moody's pegs it at one notch lower at speculative grade.
If India's sovereign rating is downgraded, it will significantly raise the cost of borrowing of Indian firms in global markets - something the government had banked on to ease the domestic credit crunch. The financial meltdown had already reduced these inflows; a rating downgrade will put an end to them altogether.
European shares turned negative as banks gave up early gains. Key benchmark indices in UK, Germany and France were down by between 0.80% and 1.14%.
Some Asian indices moved into green from red. Hang Seng rose 0.55%, Straits Times advanced 0.80% and Taiwan Weighted index gained 0.15%. But Key benchmark indices in Japan, South Korea, and China were down by between 1.24% and 4.72%. Earlier in the day, there was an across-the-board decline in Asian markets on deepening economic gloom and on fears about the global finance sector.
Trading in US index futures indicated the Dow could rise 12, cutting sharp gains, points at the opening bell on Wednesday, 18 February 2009
US markets tumbled on Tuesday, 17 February 2009 with the S&P 500 and the Dow industrials closing at near three-month lows, as regional manufacturing data signaled the recession is worsening while fresh worries about European banks underscored the global nature of the downturn.
The Dow Jones Industrial Average slumped 297.81 points, or 3.79% to 7,552.60. The Nasdaq Composite index fell 63.70 points, or 4.15%, to close at 1,470.66 and the S&P 500 fell 37.67 points, or 4.6%, to 789.17. A report showing that manufacturing production in New York state fell to a record low in February stirred worries about the deepening recession and added to fears that the new US economic stimulus package won't be a quick fix.
US President Barack Obama signed the $787 billion economic stimulus bill into law on Tuesday, but investors are fearful that the plan will not blunt the impact of the recession soon enough. The White House hopes the package will save or create 3.5 million jobs.
Obama is likely today, 18 February 2009, outline another big piece of his recovery effort later - a $50 billion plan to help stem foreclosures in Arizona, one of the states hardest hit by the mortgage defaults that are at the center of the nation's economic woes.
Meanwhile the US auto industry needs even more help from the government to survive than originally thought. General Motors on Tuesday said it could need up to $30 billion from the Treasury Department to keep operating. Included in that amount is $13.4 billion the company has already received. Previously, GM had said it could need as much as $18 billion. General Motors Corp. and Chrysler LLC said Tuesday they will need billions more in government loans than they predicted just two months ago.
Stocks fell across Europe on Tuesday, 17 February 2009 on deepening financial crisis in eastern Europe as fears escalate that troubles in former communist countries could wallop western Europe's already-stressed banking system. Moody's Investors Services on Tuesday warned that banks in Eastern Europe with large loan books faced downgrades and their parent banks' ratings could also weaken.
Closer home, Commerce minister Kamal Nath is likely to announce an export booster package later this month which would address some of the crucial concerns of the exporters. The sops under consideration include simplification of rules for service tax refund, extension of time given to exporters to meet export obligation and an increase in rates of input duty reimbursement schemes like drawback and DEPB for some sectors.
The BSE 30-share Sensex was down 16.10 points, or 0.17%, to 9,019.44, as per provisional closing. The Sensex opened points 95.62 lower at 8,939.38. At the day's low of 8,929.62, the Sensex lost 105.38 points in early trade. At the day's high of 9,112.99, the Sensex rose 77.99 points in mid-afternoon trade.
However the S&P CNX Nifty rose 5.45 points, or 0.20%, to 2,775.95 as per provisional closing
The market breadth, indicating the overall health of the market, was negative on BSE with 1377 shares declining as compared with 994 that advanced. A total of 117 shares remained unchanged.
BSE clocked a turnover of Rs 2791 crore as compared to Rs 2190 crore by 14:25 IST.
Among the 30-member Sensex pack, 16 declined while the rest gained.
Rate sensitive realty shares reversed early losses on hopes lower interest rates will spur housing demand mostly driven by finance.
India's largest real estate firm by market capitalisation DLF jumped 9.57% to Rs 162 on high volumes of 87.92 lakh shares, rebounding from day's low of Rs 142.10. It was the top gainer from the Sensex pack. As per reports a consortium of private equity funds, including UAE's leading financial institution Taib Bank, the Blackstone group and JP Morgan, are in advanced negotiations with promoters of the DLF to pick up a majority stake worth around $400-450 million in affiliate company DLF Assets.
India's largest small-car maker by sales Maruti Suzuki India advanced 4.39% to Rs 624.80 on reports it expects sales growth for the ongoing month to be around 5-7%. The company achieved total sales of 7,64,842 units for the 2007-2008 fiscal. It sold 71,779 vehicles in January 2009, its highest-ever monthly sales. India's top truck maker by sales Tata Motors rose 1.75% to Rs 133.80 after its ADR rose 1.8% on the NSE on Tuesday, 17 February 2009.
India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) gained 1.88% to Rs 1291.45, off day's high of Rs 1316. Earlier the stock rebounded sharply from day's low of Rs 1248. RIL may reportedly restart crude oil production from its predominantly gas-rich KG-D6 fields next month. The field in KG-D6 had commenced crude oil production in September 2008 and had produced over 790,000 barrels up to 9 December 2008, when output ceased due to equipment failure.
Cement companies gained on hopes of higher demand after the interim budget 2009-10 presented in parliament on Monday, 16 February 2009 allocated Rs 40,900 crore to the the Bharat Nirman scheme, a time-bound plan for building rural infrastructure.
ACC (up 4.12%), India Cement (up 3.05%), UltraTech Cement (up 2.89%), and Shree Cement (up 4.27%), and gained on from the cement pack.
India's second largest software exporter by sales, Infosys Technologies rose 0.33%. The company reportedly sees a 5% cut in IT budgets of its clients in Europe this year
However most banking and financial shares remained subdued on worries about the global banking system. India's largest dedicated housing finance company by total income Housing Development Finance Corporation (HDFC) slumped 4.36% to Rs 1370.
India's largest private sector bank by net profit ICICI Bank lost 3.99% to Rs 370.50 on a 13.63% slide in its ADR on Wednesday, 17 February 2009. India's largest bank in terms of assets and branch network State Bank of India slipped 2.72% to Rs 1069.80.
India's second largest private sector bank by net profit HDFC Bank rose 0.43% to Rs 884 despite its ADR sliding 7.72% on Tuesday, 17 February 2009.
Moody's Investors Services on Tuesday threatened to downgrade euro zone banks with significant exposure to the weakening economies in Eastern and Central Europe, and Standard & Poor's said it may review emerging Europe bank ratings.
India's second largest private sector power generation firm by market capitalisation Reliance Infrastructure fell 0.80% to Rs 514.85 after reports the junior Finance Minister Pawan Kumar Bansal said the company violated India's overseas borrowing and foreign-exchange rules. India's Union Directorate of Enforcement is now examining the violation for necessary action, Bansal said.
According to provisional data on NSE, FIIs were net sellers worth Rs 462.21 crore while mutual funds bought shares worth Rs 278.42 crore on Tuesday, 17 February 2009.
www.apollosindhoori.com
Volatility was high. The market tumbled in opening trade mirroring a fall in global stocks caused by worsening world economic situation and worries about the global banking system. Volatility was high with the market alternatively moving between positive and negative zone. But the market soon cut losses as investors chased bargains in the battered market that had dropped 6.2% in the previous two sessions on disappointment from Monday's (16 February 2009) interim general budget and on weak global stocks. It weakened again later on weakness in global stocks.
The market cut losses in early afternoon trade on higher US index futures. It moved into positive zone after the Reserve Bank of India (RBI) governor D Subbarao said the impact of the global recession on India was sharper than expected. His comments stoked speculation of more interest rates cuts to shield the domestic economy from the global financial sector crisis and recession in key global economies.
Market men see a bigger role for RBI in the coming months as election code will be in force by the end of the month which means that there cannon be any policy action from the government. Once the model code of conduct comes into force after the announcement of poll dates, any announcement by the government will be subject to Election Commission's scrutiny.
The EC is likely to announce the poll date for the parliamentary elections by the end of this month. The elections are likely to be held in April-May 2009
Meanwhile, the Centre today sought parliament's approval for Rs 10765 crore in extra spending for this fiscal year. In its interim budget the government said the fiscal deficit is seen at 6% of GDP at end 2008-09, far higher than the initial target of 2.5% set for the current year.
But the deteriorating fiscal position of the government has raised fears of downgrade of India's sovereign rating by international ratings agencies. Both Standard & Poor's and Fitch Ratings have already indicated that they are likely to lower the country's credit rating. India's fiscal deficit is one of the highest in the world and the two stimulus packages announced in recent months to shore up sagging growth have put pressure on finances, while tax collections have slowed sharply. Standard and Poor's currently rates India's local currency rating at BBB- (minus), the lowest investment-grade level, with a stable outlook. Fitch has a similar rating but with a negative outlook, while Moody's pegs it at one notch lower at speculative grade.
If India's sovereign rating is downgraded, it will significantly raise the cost of borrowing of Indian firms in global markets - something the government had banked on to ease the domestic credit crunch. The financial meltdown had already reduced these inflows; a rating downgrade will put an end to them altogether.
European shares turned negative as banks gave up early gains. Key benchmark indices in UK, Germany and France were down by between 0.80% and 1.14%.
Some Asian indices moved into green from red. Hang Seng rose 0.55%, Straits Times advanced 0.80% and Taiwan Weighted index gained 0.15%. But Key benchmark indices in Japan, South Korea, and China were down by between 1.24% and 4.72%. Earlier in the day, there was an across-the-board decline in Asian markets on deepening economic gloom and on fears about the global finance sector.
Trading in US index futures indicated the Dow could rise 12, cutting sharp gains, points at the opening bell on Wednesday, 18 February 2009
US markets tumbled on Tuesday, 17 February 2009 with the S&P 500 and the Dow industrials closing at near three-month lows, as regional manufacturing data signaled the recession is worsening while fresh worries about European banks underscored the global nature of the downturn.
The Dow Jones Industrial Average slumped 297.81 points, or 3.79% to 7,552.60. The Nasdaq Composite index fell 63.70 points, or 4.15%, to close at 1,470.66 and the S&P 500 fell 37.67 points, or 4.6%, to 789.17. A report showing that manufacturing production in New York state fell to a record low in February stirred worries about the deepening recession and added to fears that the new US economic stimulus package won't be a quick fix.
US President Barack Obama signed the $787 billion economic stimulus bill into law on Tuesday, but investors are fearful that the plan will not blunt the impact of the recession soon enough. The White House hopes the package will save or create 3.5 million jobs.
Obama is likely today, 18 February 2009, outline another big piece of his recovery effort later - a $50 billion plan to help stem foreclosures in Arizona, one of the states hardest hit by the mortgage defaults that are at the center of the nation's economic woes.
Meanwhile the US auto industry needs even more help from the government to survive than originally thought. General Motors on Tuesday said it could need up to $30 billion from the Treasury Department to keep operating. Included in that amount is $13.4 billion the company has already received. Previously, GM had said it could need as much as $18 billion. General Motors Corp. and Chrysler LLC said Tuesday they will need billions more in government loans than they predicted just two months ago.
Stocks fell across Europe on Tuesday, 17 February 2009 on deepening financial crisis in eastern Europe as fears escalate that troubles in former communist countries could wallop western Europe's already-stressed banking system. Moody's Investors Services on Tuesday warned that banks in Eastern Europe with large loan books faced downgrades and their parent banks' ratings could also weaken.
Closer home, Commerce minister Kamal Nath is likely to announce an export booster package later this month which would address some of the crucial concerns of the exporters. The sops under consideration include simplification of rules for service tax refund, extension of time given to exporters to meet export obligation and an increase in rates of input duty reimbursement schemes like drawback and DEPB for some sectors.
The BSE 30-share Sensex was down 16.10 points, or 0.17%, to 9,019.44, as per provisional closing. The Sensex opened points 95.62 lower at 8,939.38. At the day's low of 8,929.62, the Sensex lost 105.38 points in early trade. At the day's high of 9,112.99, the Sensex rose 77.99 points in mid-afternoon trade.
However the S&P CNX Nifty rose 5.45 points, or 0.20%, to 2,775.95 as per provisional closing
The market breadth, indicating the overall health of the market, was negative on BSE with 1377 shares declining as compared with 994 that advanced. A total of 117 shares remained unchanged.
BSE clocked a turnover of Rs 2791 crore as compared to Rs 2190 crore by 14:25 IST.
Among the 30-member Sensex pack, 16 declined while the rest gained.
Rate sensitive realty shares reversed early losses on hopes lower interest rates will spur housing demand mostly driven by finance.
India's largest real estate firm by market capitalisation DLF jumped 9.57% to Rs 162 on high volumes of 87.92 lakh shares, rebounding from day's low of Rs 142.10. It was the top gainer from the Sensex pack. As per reports a consortium of private equity funds, including UAE's leading financial institution Taib Bank, the Blackstone group and JP Morgan, are in advanced negotiations with promoters of the DLF to pick up a majority stake worth around $400-450 million in affiliate company DLF Assets.
India's largest small-car maker by sales Maruti Suzuki India advanced 4.39% to Rs 624.80 on reports it expects sales growth for the ongoing month to be around 5-7%. The company achieved total sales of 7,64,842 units for the 2007-2008 fiscal. It sold 71,779 vehicles in January 2009, its highest-ever monthly sales. India's top truck maker by sales Tata Motors rose 1.75% to Rs 133.80 after its ADR rose 1.8% on the NSE on Tuesday, 17 February 2009.
India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) gained 1.88% to Rs 1291.45, off day's high of Rs 1316. Earlier the stock rebounded sharply from day's low of Rs 1248. RIL may reportedly restart crude oil production from its predominantly gas-rich KG-D6 fields next month. The field in KG-D6 had commenced crude oil production in September 2008 and had produced over 790,000 barrels up to 9 December 2008, when output ceased due to equipment failure.
Cement companies gained on hopes of higher demand after the interim budget 2009-10 presented in parliament on Monday, 16 February 2009 allocated Rs 40,900 crore to the the Bharat Nirman scheme, a time-bound plan for building rural infrastructure.
ACC (up 4.12%), India Cement (up 3.05%), UltraTech Cement (up 2.89%), and Shree Cement (up 4.27%), and gained on from the cement pack.
India's second largest software exporter by sales, Infosys Technologies rose 0.33%. The company reportedly sees a 5% cut in IT budgets of its clients in Europe this year
However most banking and financial shares remained subdued on worries about the global banking system. India's largest dedicated housing finance company by total income Housing Development Finance Corporation (HDFC) slumped 4.36% to Rs 1370.
India's largest private sector bank by net profit ICICI Bank lost 3.99% to Rs 370.50 on a 13.63% slide in its ADR on Wednesday, 17 February 2009. India's largest bank in terms of assets and branch network State Bank of India slipped 2.72% to Rs 1069.80.
India's second largest private sector bank by net profit HDFC Bank rose 0.43% to Rs 884 despite its ADR sliding 7.72% on Tuesday, 17 February 2009.
Moody's Investors Services on Tuesday threatened to downgrade euro zone banks with significant exposure to the weakening economies in Eastern and Central Europe, and Standard & Poor's said it may review emerging Europe bank ratings.
India's second largest private sector power generation firm by market capitalisation Reliance Infrastructure fell 0.80% to Rs 514.85 after reports the junior Finance Minister Pawan Kumar Bansal said the company violated India's overseas borrowing and foreign-exchange rules. India's Union Directorate of Enforcement is now examining the violation for necessary action, Bansal said.
According to provisional data on NSE, FIIs were net sellers worth Rs 462.21 crore while mutual funds bought shares worth Rs 278.42 crore on Tuesday, 17 February 2009.
www.apollosindhoori.com
Tuesday, February 17, 2009
Market Outlook 18-2-2009
On global cues market is expected to open weak. Expect some kind of recovery for the day in the second session of trading. As the interim was turned to be non event the market is heading for big sell off in the coming days and this time can go below the previous October levels.Traders should avoid any long position and sell on very rise and be cautious in the present market conditions. The two days fall in reliance industries indicates further weakness in the counter. Nifty below 2700 is very weak in the coming days.
DISCLAIMER : Stock trading involves high risk and one can lose Substantial amount of money.The recommendations made herein Do not constitute an offer to sell or solicitation to buy any of the Securities mentioned. No representations can be made that recommendations contained herein will be profitable or they will Not result in losses. Readers using the information contained herein are solely responsible for their actions. The information is obtained from sources deemed to be reliable but is not guaranteed as to accuracy and completeness. The above recommendations are based on technical analysis only. NOTE WE HAVE NO HOLDINGS IN ANY OF STOCKS RECOMMENDED ABOVE.
DISCLAIMER : Stock trading involves high risk and one can lose Substantial amount of money.The recommendations made herein Do not constitute an offer to sell or solicitation to buy any of the Securities mentioned. No representations can be made that recommendations contained herein will be profitable or they will Not result in losses. Readers using the information contained herein are solely responsible for their actions. The information is obtained from sources deemed to be reliable but is not guaranteed as to accuracy and completeness. The above recommendations are based on technical analysis only. NOTE WE HAVE NO HOLDINGS IN ANY OF STOCKS RECOMMENDED ABOVE.
Sunday, February 15, 2009
Market Outlook 16-02-2009
Market to be voilatile on account of interim budget.expect sops for Infrastructure sector,Reality sector and export orient units.special sops for textile , gems & jewellery.Mid-Cap stocks looks good for short term.
Nifty above 2960-2970 levels looks very billish.
stocks to watch
Century textiles
BRFL
Rajesh exports
DLF
Nifty above 2960-2970 levels looks very billish.
stocks to watch
Century textiles
BRFL
Rajesh exports
DLF
Thursday, February 12, 2009
Market Outlook 13-02-2009
Markets are expected open strong based on global cues and can close higher for the day.Mid cap stocks looks good for short term investments.For nifty support is at 2880,2850 and resistance at 2925,2960 above 2970 don't remain short in the market.
Stocks to watch for the day
chambal fert
Fsl
Unitech
Stocks to watch for the day
chambal fert
Fsl
Unitech
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