Weekly Market Strategy - Nov 18 2012 we

Weekly Market Strategy - Nov 18 2012 

Markets sink 2% in festive week on global massacre

Tumbling trend continued on the Dalal Street for second week due to panic selling among the investors on concerns of weak global and domestic cues Major Headlines of the Week: October exports slip 1.6% to $23.2 bln IIP for Sept 2012 came in at -0.4%, below market estimate Inflation for Oct at 7.45% vs 7.81% in Sept 2012 Petrol price cut by 95 paise per litre October CPI inflation at 9.75% vs 9.73%

US fiscal-cliff negotiations in focus

The upcoming winter session of the parliament in India and fiscal-cliff negotiations in the US will dictate trend on bourses in the near term. The winter session of the parliament begins on Thursday, 22 November 2012. Finance Minister P. Chidambaram on Friday, 16 November 2012, said that the winter session will have a heavy legislative agenda. Siemens announces its results of the year ended 30 September 2012 on Friday, 23 November 2012 US President Barack Obama and Congressional leaders begin fiscal-cliff negotiations on Friday, 16 November 2012. Investors are worried about the possibility of the so-called "fiscal cliff" in US, if the Congress fails to act. The fiscal cliff refers to the year-end deadline for the expiration of hundreds of billions of dollars worth of tax cuts and the triggering of $109 billion in across-the-board spending cuts. The US Congress created the hazardous deadline of 31 December 2012 in August 2011 when it agreed to a deficit deal as a way out of a deadlock over raising the US debt ceiling. In Europe, an extraordinary meeting of euro-zone finance ministers is scheduled to be held on Tuesday, 20 November 2012, after euro-zone finance ministers after holding a meeting on 12 November 2012 delayed releasing the next tranche of bailout money to Greece.

Market loses ground on US fiscal cliff worries

Key benchmark indices edged lower as European stocks dropped and as trading in US index futures indicated lower opening of US stocks later in the global day today, 16 November 2012. Worries about the US "fiscal cliff" and Europe's long-running debt problems weighed on sentiment. The barometer index, BSE Sensex, reached its lowest closing level in more than 9 weeks. The 50-unit S&P CNX Nifty reached its lowest closing level in more than 8 weeks. The Sensex was down 162 points or 0.88%, up about 40 points from the day's low and off close to 265 points from the day's high. The market breadth turned negative from positive in late trade. Indian stocks dropped for the sixth day in a row today, 16 November 2012. From a recent high of 18,902.41 on 7 November 2012, the Sensex has declined 593.04 points or 3.13% in the past six trading sessions. The Sensex has surged 2,854.45 points or 18.46% in calendar 2012 so far (till 16 November 2012). The Sensex has declined 196.01 points or 1.05% in this month so far (till 16 November 2012). From a 52-week high of 19,137.29 on 5 October 2012, the Sensex has declined 827.92 points or 4.32%. From a 52-week low of 15,135.86 on 20 December 2011, the Sensex has risen 3,173.51 points or 20.96%.

Coal India

Coal India 

Sun TV

Sun TV 

Daily News Roundup - Nov 16 2012

Mahindra & Mahindra Financial Services has raised Rs8.67bn through a qualified institutional placement (QIP) issue. (BS) DGH has given nod to Reliance Industries to drill a well as part of the US$1.529bn plan to develop four satellite gas fields around the now flagging main fields in the eastern offshore KG-D6 block. (ET) Swedish truck maker Volvo AB announced its plans to invest Rs38bn in India over the next few years. Of this, Rs18bn will be invested in its joint venture with Eicher Motors Ltd. (ET) Tata Motors global sales increased 6% in October to 1,00,660 units over the same period last year. Sales of luxury brands from Jaguar Land Rover were at 27,897 units in October, up 7% from the same month last year. (ET)

Sensex, Nifty falter after a break

The Indian stock markets crumbled after a festive break outside the market. Indices slipped lower on Thursday following sharp overnight losses in the US markets amid worries of the U.S. "fiscal cliff" of potential tax hikes and spending cuts. Sell-off was not only seen in the India but across all the equity markets in Asia and Europe. Barring the Realty, Consumer Durables and the Power sectors the other major sectoral indices ended in the red. The BSE IT index was the top loser the index declined 1.8% followed by BSE Metal index was down 1.7%, BSE FMCG index was down 1.3% and BSE Auto index was down 0.9%. Even the BSE Mid-Cap index declined 0.2%. However, the BSE Small-Cap index added 0.3%.

Flat open, some buying likely

Every moment of one's existence one is growing into more or retreating into less. - Norman Mailer There seems to be no sense of urgency in lapping up stocks as sentiment continues to be impacted by a host of global factors. World markets continue to depress and the start is set to be flat. Asian markets are inching higher and this could bring some respite from the selling witnessed in recent days. Negative reports on the US economy continue. The US indices came tumbling for the fourth straight day. President Obama will discuss the fiscal cliff with Republican and Democratic leaders of Congress. Data on Thursday showed new claims for unemployment benefits rose last week. Factory activity shrank in November on account of superstorm Sandy. Federal Reserve Chairman Ben Bernanke said the Fed is willing to do what it can to help the housing market adding that though housing is rebounding, it still faces challenges.

Flat to negative start likely

Indian markets signal flat to negative start led by mixed Asian cues. SGX Nifty is also trading 8.50 points lower. Events for the day: Ex date for interim dividend of APM Industries. Headlines for the day: Sintex to raise up to $150 mn through FCCBs. RIL gets nod to drill a well in D-19 field. Kingfisher seeks more time to submit revival plan to DGCA. Karnataka Bank cuts lending rate by 0.25%.

Market may open lower

Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could fall 7 points at the opening bell. Tata Consultancy Services (TCS) announced after market hours Thursday, 15 November 2012, it is collaborating with SAP AG on development of the SAP Retail Execution mobile app version 3.0. The collaboration is based primarily on TCS' extensive experience in consumer packaged goods (CPG) industry implementation projects and mobile application product development, TCS said. PSU OMCs and auto stocks will be in focus as the country's largest fuel retailer, Indian Oil Corporation (IOC) said on Thursday state-run fuel retailers will cut petrol prices by about 1.4% from Friday. The government decontrolled pricing of petrol in 2010. "The trends in the international oil market and rupee-dollar exchange rate are being closely monitored and the same shall be reflected in future price changes," IOC said in the statement.

PSU OMCs, auto stocks in focus after petrol price cut

Shares of public sector oil marketing company (PSU OMCs) and auto companies will be in focus as India's largest fuel retailing company - Indian Oil Corporation (IOC) on Thursday, 15 November 2012, announced a Rs 0.95 per litre cut in the petrol price. The government decontrolled pricing of petrol in 2010. Petrol in Delhi now costs Rs 67.24 a litre, down 95 paise from Rs 68.19 a litre. Prices vary from city to city due to differential local sales tax or VAT rates. Biocon announced that it has entered into an option agreement with Bristol-Myers Squibb Company for Biocon's IN-105, a prandial oral insulin product candidate. Under the terms of the agreement, Bristol-Myers Squibb will have the right to exercise an option to obtain an exclusive worldwide license to the program. Biocon will conduct clinical studies to further characterize IN-105's clinical profile accordingto a pre-agreed development program up to the completion of Phase 11.

Weekly Stock Picks - Nov 11 2012

Buy Aurobindo Pharma Buy IB Real Estate Buy Century Text Buy Havells Buy Sintex Industries

Weekly Newsletter - Nov 11 2012

The week began with attention solely focused on who would the Mr. President of the United States of America. Obama’s second coming brought the US indices lower and all other global markets appeared to have followed suit. Investors appeared to be worried about how Obama will deal with or avoid the ‘fiscal cliff.’ Interest rates were left unchanged by ECB and Mario Draghi sounded that economic activity in the eurozone would remain weak in the near term. Indian indices were resilient at the start of the week but turned in the red from mid-week as the global sentiment worsened. For the week the Sensex and Nifty index ended marginally lower by 0.18%. The IIP numbers will have its impact on few segments as the numbers are announced on Monday. The earnings season continues and investors will continue to pay closer attention to corporate numbers as they come. The Monthly WPI is expected on Wednesday. It may be recalled that the diesel price hike had led to WPI inflation hitting a 10-month high in September.

Barack is Back...After winning Presidential election its fiscal cliff worries

Obama wins US Presidential election for the second term as 44th President after winning a key victory in Ohio. The Second coming of President Barack Obama has brought more worries than joy. To begin with the fiscal cliff is top of the mind worry for the world and not just the United States of America. In his victory speech, Obama stressed that the Best Is Yet to Come add that the country lives up to its legacy as the global leader in technology and discovery and innovation, with all the good jobs and new businesses that follow.