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Monday, September 20, 2010
Weekly: Stellar show by Sensex, Nifty
The bulls continued their rampage on Indian bourses on back of July IIP data, which beat all expectations. The flush of funds so far has led to Indian indices performing relatively better to their global peers. However, lack of participation by the broader market in the recent rally raises some doubts about the strength and sustainability of the advance. Finally, Nifty advanced by 4.3% during the week and Sensex added 4.2%.
Future looks good for Port companies
Starting 2010, the future may belong to the private sector in Indian ports, commented a senior Shipping Ministry bureaucrat five years ago. Things are going pretty much in the same direction as he predicted, contrary to many in the industry saying government-run major ports will continue to dominate the sector.
Gold at new record high
Spot gold touched a new record high and was headed for the biggest weekly gain since May, as global investors continued to seek refuge in the precious metals amid lingering concerns about global economic growth. Gold for immediate delivery rose as much as US$7.72, or 0.6%, to US$1,282.97 an ounce and traded at $1,279.55 at 11:44 a.m. in London on Friday. Gold prices are up 2.7% this week. Gold for December delivery gained as much as 0.8% to US$1,284.40 an ounce and was last at US$1,280.60 on the Comex in New York.
Yen slumps vs. dollar on government intervention
Japanese stocks spurted as the yen plunged against the US dollar on the first government intervention in the foreign currency market since March 2004 and pledged to do more if needed to preserve its export-led recovery. A stronger yen erodes the competitiveness of the exports that are the key driving force behind Japan's economy. The yen plunged to 85.78 per dollar from a 15-year high of 82.88. Exporters benefited from a weaker yen, sending the benchmark Nikkei 225 Stock Average up 6% during the week to 9,626.
Rupee hits new three-month high on stock rally
The Indian rupee extended gains against the US dollar to touch a new three-month high, buoyed by strong gains in the local stocks and a weak dollar in the overseas markets. The partially convertible Indian currency was last seen trading at 45.8450 per dollar, stronger than 46.14/15 at close on Thursday. It earlier touched 45.8250, its highest level since June 21. The rupee, which was headed for its biggest weekly advance since July, climbed to a three-month high after the RBI yesterday raised its benchmark interest rates for the fifth time this year.
Weekly Newsletter - Sep 19 2010
The bulls are out of their deep slumber it seems and raring to go. They have already gone quite a lot ahead in pushing the key indices up over the past few sessions. But, there are no indications as yet that point to a halt to the current bull-run. Only a really nasty global surprise can spoil the party here in India because the domestic prospects have not looked so bright in a long, long time. Federal Reserve's meeting next week is going to be a big event in this context. The US central bank is expected to hold rates near record low but it will be interesting to see whether it announces any debt purchase plan.
RBI hikes repo rate by 25 bps; reverse repo by 50 bps
The Reserve Bank of India (RBI) raised its key policy rates by up to 50 basis points (bps) at its mid-quarter monetary policy review as it seeks to contain inflation in a rapidly growing economy. The central bank hiked the repurchase rate (repo rate) by a quarter percentage point to 6% while the reverse repo rate was increased by 50 bps to 5%.
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