Smart Invest and Smart Trade - Oct 25 2010
Monday, October 25, 2010
Wipro, Bank of India, Indian Bank, SKS Microfinance, Biocon, Bharat Forge, Mahindra and Mahindra Financial, DB Corp, Sobha Developers, Reliance
Wipro, Bank of India, Indian Bank, SKS Microfinance, Biocon, Bharat Forge, Mahindra and Mahindra Financial, DB Corp, Sobha Developers, Reliance Industries, Sugar Sector
Nifty October 2010 futures were at 6,137.15, at a premium of 31.35 points over spot closing of 6,105.80. Nifty November 2010 futures were at 6,165, at a premium of 59.20 points over spot closing of 6,105.80.
Most indices gain after global finance ministers and central bankers note that a global economic recovery is under way at an uneven pace
Asian markets mostly went up today, cruising higher as the renewed wave of risk appetite pushed up the commodities and traders eyed the latest G20 statement. The much awaited talks of the G20 meet in South Korea ended yesterday and the Group of 20 finance ministers and central bankers noted that a global economic recovery is under way but uneven, and warned of the need to move toward more “market-determined” currency exchange rates. Growth has been strong in many emerging-market economies, but the pace of activity remains modest in many advanced economies, noted the G20 in a joint communiqué. Dollar slipped following this, as traders eyed for a definite turn towards the much anticipated quantitative easing in the next meet of US Fed.
Initial batch of strong Q2 September 2010 results and firm global markets helped Indian stocks score decent gains in a choppy trading session. Stocks were volatile as traders rolled over positions in the derivatives segment from the near-month October 2010 series to November 2010 series ahead of the expiry of the October 2010 contracts on Thursday, 28 October 2010. Shares of IT bellwether Infosys fell and index heavyweight Reliance Industries came off the day's high. Most Asian markets climbed on expectations that further monetary easing by the US Federal Reserve would boost liquidity in the region.
Hindustan Unilever Q2 net profit jumps 32% yoy; the stock closes 1.36% higher
Rural Electrification Corporation Q2 net profit surges 25% yoy; the stock ends 2.56% lower
Adani Power Q2 net profit at Rs125.84 crore; the stock closes 0.15% higher
We are expecting a sedate start today, in line with the global trend. US stocks barely advanced on Friday. European markets ended in red. Asian benchmarks are mixed. Going ahead, things might get a bit more volatile due to the F&O expiry.
In matters of style, swim with the current; in matters of principle, stand like a rock. - Thomas Jefferson.
World markets seem to be in a state of limbo right now. Corporate earnings are competing with concerns about economic recovery. For India too the story is no different; the September spark is clearly missing. The Sensex and the Nifty are in a sideways consolidation mode. Fresh fireworks ahead of Diwali look less likely for now.
Sterlite Energy revised the outlay for its proposed power project in Punjab upwards by over Rs30bn, taking the total investment commitment to around Rs130bn. (BS)
Reliance Industries says it plans to shut down one of the crude distillation units at its Jamnagar Refinery for maintenance and inspection. (BS)
Toshiba Mitsubishi-Electric Industrial Systems Corporation is in talks with L&T to build a power drive and motor manufacturing unit in the country. (ET)
The splendid response to the Coal India IPO boosted the morale of the bulls; as did a few strong corporate earnings. However, momentum failed to last as key indices saw accelerated selling on Friday. Sentiment was also nervous after two consecutive weeks of losses, which dragged down the indices from 33-month highs. Finally the Sensex and Nifty closed the week flat at 20166 and 6066 respectively.
LIC Housing Finance, Bajaj Auto, Educomp Solutions, Kotak Mahindra Bank, Power Grid, Sesa Goa, Sobha Developers, TCS, South Indian Bank, Info Edge
Most Dow components exceed earning estimates
US stocks registered modest gains for the week that ended on Friday, 22 October 2010. Earning reports poured in full swing this week and there were quite a few big names that reported earnings including twelve major Dow components. Most of the companies exceeded expectations. Other than that, the economic reports too pained a overall steady picture of the economy.
Stocks fail to ward off weekly losses
Crude oil prices ended higher on Friday, 22 October 2010 at Nymex. Prices rose despite the firm dollar. Continuation of a strike at an important oil port in Southern France impacted prices.
Prices witness weekly losses in a long time
Precious metal prices dropped for second straight day on Friday, 22 October 2010 at Comex. Prices erased earlier gains and fell as the dollar strengthened. With Friday's loss, gold registered first weekly loss in six weeks.