Staying within limits

"The only limits are, as always, those of vision." - James Broughton. Call it lack of vision or mission. India needs urgent, decisive and convincing policy action to reverse the slide. Strong FII flows and global risk appetite have pushed Sensex beyond 18,000 and Nifty past 5,400. But, IIP data continues to be bleak. That investments had stagnated was known, but even consumption is starting to ease. The bad news is monetary and fiscal space available to policymakers is limited. Also, both camps seem to be waiting for the other to blink first. The ball is in the Government’s court. It has been unable to take any meaningful measure that could inspire confidence among investors, consumers and India Inc. The wait for reforms has been too long and might even extend further amid the ongoing political feud over ‘coal-gate’.

Flat to negative start likely

The Indian markets may begin today’s trade on a flat to negative note led by mixed global cues. SGX Nifty is trading 2.50 points lower. Events for the day: Ex date for dividend of MMTC, Ruby Mills. Ex date for final dividend of Sun TV Network, NMDC..

Market seen halting recent gains on subdued Asian stocks

The market is likely to take a breather after the recent strong gains. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a fall of 5 points at the opening bell. Asian stocks were mostly lower on Thursday ahead of the US Federal Reserve's decision about injecting more stimulus into the world's largest economy. Key benchmark indices gained for the sixth straight trading session on Wednesday as world stocks rose after Germany's highest constitutional court allowed the country to ratify the euro area's permanent bailout fund. Optimism the Indian government will unveil a series of fiscal policy decisions later this week and hopes of further stimulus measures from the world's top central banks underpinned sentiment. The BSE Sensex was up 147.08 points or 0.82% to 18,000.03, its highest closing level since 23 February 2012.

Small and Midcap Picks

Small and Midcap Picks

India Strategy - Sep 2012

 India Strategy - Sep 2012

ONGC - All in One

 ONGC - All in One

India Strategy Reports - Sep 12 2012

 India Strategy Reports - Sep 12 2012 

Sensex climbs modestly…Metal shares sink

The Indian stock market indices had a smart session on Tuesday, showing some resilience in the backdrop of weak global equities. Overnight losses in the US and Asian markets dragged the sentiment down at open; however after hitting an intra-day low of 5332, the Nifty index was on a constant uptrend. Market sentiment got a fillip after the Germany's Constitutional Court said that it would not postpone its ruling on the legality of the eurozone's bailout fund, despite a last-minute legal challenge. The smart upswing was led by gains in Realty, IT, Power, Telecom, Banking and Consumer Durables. The Mid-Cap and the Small-Cap indices extended rally, with both gaining 0.3% and 0.6%, respectively.

Mkts end with modest gains ahead of IIP nos

The Indian equities remained highly volatile throughout the day and closed today's trading session in the green zone despite losses all across the globe. The Sensex closed 86 points higher while the Nifty ended 27 points higher in trade today. Major Headlines of the Day: Oil marketing cos’ up over 2% on fuel price hike hopes Tata Motors hits monthly high on JP Morgan report Panacea Biotech locks upper circuit Hero MotoCorp drops on production cut woes Sesa Goa, Sterlite slips over 5% as Goa govt shuts mining activities

Sensex scales 3 week high

Key benchmark indices gained for the fifth straight trading session as data showing that foreign funds remained net buyers of Indian stocks on Monday, 10 September 2012 boosted sentiment. The Sensex was up 86.17 points or 0.49%, up close to 175 points from the day's low and off about 15 points from the day's high. The barometer index, BSE Sensex scaled its highest closing level in 3 weeks. The 50-unit S&P CNX Nifty hit its highest closing level in nearly 3 weeks. The market breadth was positive. From a recent low of 17,313.34 on 5 September 2012, the Sensex has gained 539.61 points or 3.11% in five trading sessions. The Sensex has gained 423.39 points or 2.42% in this month so far (till 11 September 2012). The Sensex has jumped 2,398.03 points or 15.51% in calendar 2012 so far (till 11 September 2012). From a 52-week low of 15,135.86 on 20 December 2011, the Sensex has risen 2717.09 points or 17.95%. From a 52-week high of 18,523.78 on 22 February 2012, the Sensex has lost 670.83 points or 3.62%.

Daily News Roundup - Sep 10 2012

The disinvestment department has called in bids from merchant bankers and brokers to sell its stake in public sector companies like Nalco and NMDC, making it the government’s first move this fiscal year to cut its stake in state-run companies. (ET) The Delhi High Court dismissed Hoffmann-La Roche’s suit accusing Cipla of infringing the Swiss company’s patent for its lung cancer medicine Tarceva. (ET) The Supreme Court has ordered the Central Bureau of Investigation to investigate the alleged illegal exports of iron ore by companies such as Adani Enterprises, Salgaocar Mining Industries and Mallikarjun Shipping. (ET)

Positive tempo seen

"If you always do what you always did, you'll always get what you always got." – Anonymous. Nothing really changed over the weekend as the key Indian stock indices logged modest gains in low volume, lackluster trade on Saturday.However, they might just maintain the positive tempo seen in recent days at start today. The upbeat undercurrent is largely due to healthy global markets.The ECB’s monetary stimulus appears to have calmed unnerved investors for the time being. The latest IIP data (Sept. 12) and WPI inflation report (Sept. 14) will have some bearing on Indian markets as well amid lingering worries over the policy paralysis that has gripped the nation. The German constitutional court’s verdict on the legitimacy of the European Stability Mechanism (ESM) will be keenly watched. The initial euphoria over the ECB’s bond-buying plan could fade if the German court delivers an unfavourable verdict.

Strong gains for bullions

Weak job report and weak dollar impart the dazzle Bullion prices at Comex rose sharply on Friday, 07 September 2012 settling at their best in more than six months, after a negative jobs report at Wall Street was thought to hasten additional U.S. economic stimulus measures. The low dollar also aided in prices moving up. Gold for December delivery advanced $34.90, or 2.1%, to settle at $1,740.50 an ounce on the Comex division on Friday. That was gold's highest settlement since late February. On the week, gold rose 3.1%, its third consecutive week of gains December silver gained $1.02, or 3.1%, to $33.69 an ounce on Friday. That was silver's highest finish since March. Silver rose 7.2% in the five-day period. Further impulse for silver, metals widely used in industrial sectors, came from the announcement Friday that China had approved another batch of multi-million dollar infrastructure projects. Latest data from the Labor Department at Wall Street showed that U.S. nonfarm payrolls rose by 96,000 in August, 2012. This came in well below market estimates around 125,000 and compared to July's revised growth of 141,000 jobs. The unemployment rate fell to 8.1%, down from 8.3% in July, as more people checked out of the workforce. The dollar index, whch weighs the strength of the dollar against a basket of six other currencies, fell by almost 0.8% on Friday.

Crude pares earlier losses and moves up

Crude ends flat for the week Crude oil futures settled higher on Friday, 07 September 2012 at Nymex shaking off earlier weakness as disappointment over the U.S. nonfarm payroll numbers gave way to hope the negative report would usher in faster stimulus measures. The low dollar also aided in prices moving up. Light and sweet crude for October delivery rose 89 cents, or 0.9%, to end at $96.42 a barrel on Friday. On the week, however, oil was closer to flat, down less than 0.1%. Latest data from the Labor Department at Wall Street showed that U.S. nonfarm payrolls rose by 96,000 in August, 2012. This came in well below market estimates around 125,000 and compared to July's revised growth of 141,000 jobs. The unemployment rate fell to 8.1%, down from 8.3% in July, as more people checked out of the workforce. The dollar index, whch weighs the strength of the dollar against a basket of six other currencies, fell by almost 0.8% on Friday. The dollar fell in the wake of Draghi's monthly news conference Thursday. Among other energy products on Friday, October gasoline rose 3 cents, or 1%, to $3.02 a gallon, while October heating oil added 1 cent, or 0.2% to $3.15 a gallon. Gasoline gained 1.6% on the week, its sixth consecutive week of gains. Heating oil declined 1% this week, snapping a five-week winning streak. Natural gas also for October delivery declined 9 cents, or 3.4%, to $2.68 per million British thermal units. Prices declined 4.2% on the week, with the product down for six out of the past seven weeks.

Market likely to open higher

Trading for the week is likely to begin on firm note on positive Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a gain of 17.50 points at the opening bell. Asian markets were trading higher on Monday, 10 September 2012, with expectations rising that weak US jobs data would prompt the US Federal Reserve to announce fresh stimulus this week. Jindal Steel & Power turns ex-dividend today, 10 September 2012, for dividend of Rs 1.60 per share for the year ended 31 March 2012 (FY 2012). ONGC Videsh (OVL) has signed definitive agreements for the acquisition of Hess Corporation's 2.7213% participating interest in the Azeri, Chirag and the Deep Water Portion of Guneshli Fields in the Azerbaijan sector of the Caspian Sea (ACG) and 2.36% interest in the Baku-Tbilisi-Ceyhan Pipeline (BTC), for $1 billion. The acquisition is subject to relevant government and regulatory approvals and is expected to close by the first quarter of 2013, OVL said after trading hours on Saturday, 8 September 2012.