India Equity Analysis, Reports, Recommendations, Stock Tips and more!
Search Now
Recommendations
Saturday, January 07, 2012
First week of 2012 ends in green
It was a volatile week for the Indian markets, with the Sensex closing 2.55% higher and the Nifty up by 2.65%
Major news for the week
Factory activity hits six-month high
November exports rise 3.9%
India's services sector grows at fastest pace in 5 months
Union Budget to be presented after March 9
Food inflation at -3.36% vs 0.42%
Govt to notify 100% FDI in single brand retail soon
RBI likely to ease policy: Subbarao
Govt allows foreign individuals to play in stock markets
Third quarter earnings to set direction
The near term major trigger for the market is Q3 December 2011 results. The focus will be on guidance from the company managements on outlook for the remaining part of the year and for the next year. Analysts expect weak Q3 December 2011 results due to lower volume growth in a slowing economy, higher raw material costs and higher interest charges.
IT bellwether Infosys and housing finance major HDFC kickstart the Q3 December 2011 earnings season on Thursday, 12 January 2012, among major companies. IndusInd Bank will announce Q3 December 2011 result on Tuesday, 10 January 2012. Development Credit Bank and GRUH Finance will announce their Q3 December 2011 result on Thursday, 12 January 2012. Sintex Industries and Triveni Turbine will consider their Q3 December 2011 results on Friday, 13 January 2012.
Volatile week ends with gains
The government's decision to allow qualified foreign investors to invest directly in local equities helped the market register gains on the first trading week of the New Year. Data showing a sharp improvement in manufacturing activity in December 2011 and a steep decline in food inflation in late December 2011 underpinned sentiment.
Comments by Reserve Bank of India governor that the central bank is likely to begin easing monetary policy to address concerns about economic growth also boosted sentiment. However, concerns about upcoming Q3 December 2011 earnings kept gains in check. Trading was volatile throughout the week.
Markets close flat on special trading session
The Indian markets were volatile on the special trading session, moving between negative and positive zones. Trading volumes were low. The cues from the US stocks were positive after better-than-expected jobs data for December while Asian indices were shut for the day.
Markets were open today because the NSE was upgrading its Futures & Options trading system hardware and software system. Trading took place in capital market segment, F&O segment and Securities Lending & Borrowing Scheme between 11.15 am to 12.45 pm.
BSE Small-Cap, Mid-Cap indices nudge higher
Key benchmark indices registered small losses during the special 1-1/2-hour trading session held today, 7 January 2012. The barometer index, BSE Sensex, was down 18.93 points or 0.12%, off close to 50 points from the day's high and up close to 15 points from the day's low. The market breadth, indicating the overall health of the market was strong. BSE Small-Cap and Mid-Cap indices edged higher.
PSU stocks surged. Shares of organised retailers jumped for the second straight day after Industry Secretary, P.K. Chaudhary said on Friday, 6 January 2012, that the government is soon expected to issue the notification allowing 100% foreign direct investment in single brand retail. Capital goods stocks rose on bargain hunting after a steep decline last month. IT stocks rose on strong economic data in the US, the biggest outsourcing market for the Indian IT firms. Realty major DLF rose on bargain hunting after recent steep slide.
Market may remain volatile during special trading session
The market may remain volatile and volume will be thin during the special 1-1/2-hour trading session being held today, 7 January 2012. The special trading session is being held today, 7 January 2012, as the National Stock Exchange is upgrading the capacity of its futures and options trading system hardware and software. Trading will take place from 11:15 IST to 12:45 IST. Trades done on today, 7 January 2012, will be settled on Tuesday, 10 January 10, 2012, as a separate settlement, NSE said.
Key benchmark indices registered marginal gains after witnessing wild intraday gyrations in the latter part of the trading session on Friday, 6 January 2012. The BSE Sensex rose 10.65 points or 0.07% to settle at 15,867.73, its highest closing level since 4 January 2012.
Friday, January 06, 2012
Morning Updates - Jan 6 2012
ECONOMY:
* Finance Minister Pranab Mukherjee is scheduled to speak at a function organized by
Institute of Chartered Accountants ofIndia in Chennai. He is also speaking at the Indian
OverseasBank’s Platinum Jubilee function.
Daily News Roundup - Jan 6 2012
LIC Housing Finance, battered by corruption over a year ago, is leaning on its parent’s 1.5mn agents and chasing middle-class customers to revive growth and erase the blot. (ET)
Nestle India announced the launch of one of its global programmes, Nescafe Plan, to support coffee farmers and help it optimize its coffee supply chain. (ET)
Maruti Suzuki plans to launch at least four cars in 2012 across different segments to shrug off a forgettable 2011 and regain market share that dipped below 40% this fiscal. (ET)
Almost a year after acquiring South Korean SUV maker, Ssangyong Motor Company, Mahindra & Mahindra is planning to set up assembly plants in emerging markets of the world. (ET)
Unconvincing possibilities!
A likely impossibility is always preferable to an unconvincing possibility. - Aristotle.
Possibilities of sustaining higher levels remain unconvincing. Food inflation may be in the negative zone now, but that’s partly due to the base effect. Interest rate cycle appears to have peaked but a weak Rupee and stubbornly high crude are delaying the reversal in the RBI’s hawkish monetary policy. It is a question of when and not if as far rate cuts by the RBI is concerned.
The impending shift in the central bank's policy stance could act like a tonic for the markets in the short-term. But, that won’t be enough to revive economic growth. The Government must find a way out of the current mess and rollout important reforms. Even a declaration of intent should be suffice for now.
Markets may fall at start
Concerns over Europe’s debt crisis is deepening, overshadowing improving economic data in the US. The opening is expected to be in the red zone.
Headlines for the day
SBI classifies its Kingfisher Airlines exposure as NPA
RBI tweaks overseas borrowing norms to aid India Inc
Maruti to develop global products with parent Suzuki
M&M to debut Ssangyong products around Diwali
Tata Motors nixes D-segment plans
SREI to raise Rs 300 cr via tax-saving bonds in first tranche
Thursday, January 05, 2012
Sensex consolidates further …Nifty ends flat
After enjoying two terrific sessions at the start of the new year, the Indian equity markets have entered into a consolidation phase. It may be recalled that the BSE Sensex had surged by more than 400 points on Tuesday after advancing modestly on Monday. After coming close to 4800, the NSE Nifty erased all of the session's gains and slipped into the negative terrain in late afternoon trade. During the day, the Sensex also came within striking distance of 16,000. However, it was unable to sustain the momentum.
Markets close volatile session on a flat note
It was another volatile session for markets, which ended on a flat note. The Sensex fell 26 points and the Nifty stood unchanged
Headlines for the day
Food inflation at -3.36% vs 0.42%
Welspun shares in demand
Hexaware Technologies says stake sale of business is speculative
Kiri Industries soars on fund raising plan
Subscribe to:
Posts (Atom)