MUMBAI: The Indian stock market is seen choppy with a negative bias next week. With the end of the third quarter results season and Reserve Bank
Last two days of the current week, already cut short by a holiday Tuesday for Republic Day celebrations, saw the bulls try to get a grip on a losing market. Whether they will be able to hold their own against the bear onslaught is the question.
Bombay Stock Exchange’s 30-share Sensex ended the week ended Jan 29 at 16,357.96, losing 501.72 points or 2.98 per cent from the earlier week’s close of 16,859.68.
National Stock Exchange’s Nifty closed the week at 4882.05, down 153.95 points or 3.05 per cent from Jan 22 close of 5036.00.
The recent correction in stock prices was anticipated following the sharp run-up in stock prices on the back of expectations of good performance from India Inc. Overall, the third quarter results have surpassed or been in line with street estimates but with inflation becoming a worry, traders advise caution.
“We are very cautious at this juncture and suggest all short term players to lighten the position to avoid a sudden and sharp fall in the market. On the upside till Nifty does not move above 5000 levels we are not comfortable in suggesting in any long position to traders,” said an Anand Rathi report.
On Friday, in its Q3 monetary policy, the RBI raised the cash reserve ratio (CRR) by a higher-than-expected 75 basis points to 5.75 per cent against estimates of 50 bps hike. The central bank left its policy rates, repo and reverse repo--unchanged at 4.75 per cent and 3.25 per cent respectively. The CRR hike will be effected in two stages: by 50 bps for the Feb 13 fortnight and by 25 bps from Feb 27, sucking out Rs 36,000 crore of surplus liquidity from the banking system.
However, the sharp rise in food inflation led the RBI to revise upward its wholesale price index (WPI) inflation projection to 8.5 per cent end-March 2010 from 6.5 per cent. The apex bank also revised upward its GDP projection to 7.5 per cent for FY10 from 6.0 per cent, on the back of a strong rebound in industry and better prospects of Kharif crop.
“Increasingly confident of the economy's return to growth path (sustained domestic demand; early signs of revival in private sector demand for consumption and investment; growth in exports; signs of improvement in external demand factors), the RBI is moving further in reversing the crisis-driven expansionary stance. Capacities across many sectors could be stretched by this time next year. Hence, further upward pressure on product prices. There is upside risks to inflation from higher-than-expected commodity prices (including oil prices that have been range-bound). The RBI has also called for a gradual but simultaneous exit from the fiscal accommodative stance that was necessarily adopted during the crisis. This would be almost mandatory if the system interest rates need to be kept under check,” said Murali Krishnan, Head of Research, Ambit Capital, on the RBI’s policy moves.
Ambit expects WPI inflation to rise to double-digits in March, moving above the RBI’s projections once again. Thus, it expects 150 bps of repo and reverse repo rate hikes and a further 75 bps of CRR hikes between now and March 2011.
*****************************************
31 Jan 2010, 0233 hrs IST
Aggressive plans for a FY11E employee addition and significant uptick in lateral hiring signals a robust revenue growth outlook for the sector.
31 Jan 2010, 0232 hrs IST
Strong Q4 revenue guidance, implying 4% QoQ growth, points to a strong rebound in FY11E top-line.
31 Jan 2010, 0230 hrs IST
Polaris Software reported a good set of Q3 figures, with revenue rising 3.9% QoQ. It has won 30 new deals, the highest in a single quarter over the last two years.
31 Jan 2010, 0229 hrs IST
Infotech Enterprises reported good Q3results, with revenue growing 4.7% QoQ.
31 Jan 2010, 0228 hrs IST
The deal with Nokia will enable Tanla to increase revenues from this stream and successfully reduce dependence on premium SMS services.
31 Jan 2010, 0226 hrs IST
Major demand in the solutions business is seen from logistics sectors like transportation and material handling and manufacturing segments like automobiles, pharma and healthcare.
30 Jan 2010, 0343 hrs IST
Some fund managers could not take US president Obama’s remarks on the IT sector in their stride.
*****************************************
TECHNICAL ANALYSIS: Index Outlook: Uptrend under threatBulls remained on the back foot right from the outset last week as fear of increase in policy rates and weakness in the global equity markets kept stock prices in check. Unwinding of long positions prior to expiry of January derivative ...
CEMENT: Cement: Prospects not so grey
Volume despatches reported by the cement industry for the nine months of this fiscal were higher by 13 per cent against last year, a level of growth not seen in recent times. Yet, the December quarter numbers of industry bigwigs such as ...
STOCKS: Educomp Solutions — Buy
PUBLIC OFFER: NTPC — FPO: Invest
NTPC is one of the better bets among power stocks. Though it has grown at a sedate pace over the last five years, NTPC is likely to deliver better earnings growth over the ...
STOCKS: V-Guard Industries: Buy
Investors with a medium-to-long term horizon can buy the stock of V-Guard Industries (V-Guard) due to the high potential of the consumer durables business and the discounted valuation of the stock. At Rs 84, the stock trades at 12 times ...
TECHNICAL ANALYSIS: Stock Strategy: Consider shorting Tata Motors, Dish TV
Tata Motors (Rs 690): After reaching its 52-week high at Rs 845, the stock has been in a downtrend. It now finds resistance at Rs 730 and only a close above Rs 740 would arrest the weak trend. In that event, the stock has the potential to ...
MUTUAL FUNDS: ICICI Prudential Power Fund: Hold
Investors may retain units of ICICI Pru Power Fund (ICICI Power) considering its long-term track record in delivering ...
TECHNICAL ANALYSIS: Query Corner: Tata Communications at long-term support
Can you give your views on Praj Industries bought at Rs 110? ...
TECHNICAL ANALYSIS: Pivotals: Reliance Industries (Rs 1,046.5)
Reliance Industries declined to the low of Rs 1,018 last week. But the 200-day simple moving average present at Rs 1,020 cushioned the fall and the stock has been hovering just above this level over the last three sessions. A rebound early ...
BOOKS: Winning techniques of star venture capitalists
Do it, run it, teach it, or own it – that's what venture capitalists believe in, says Yinglan Tan in The Way of the VC: Having top venture capitalists on your board ( www.wiley.com). The relationship between the venture capitalist and ...
*****************************************
Emmbi Polyarns IPO Analysis
Jain Irrigation Systems
Hyderabad Industries
Markets to remain volatile, say analysts
Src: ET, Businessline and DP Blog etc
1 comment:
Good day, sun shines!
There have were times of hardship when I didn't know about opportunities of getting high yields on investments. I was a dump and downright pessimistic person.
I have never imagined that there weren't any need in large starting capital.
Nowadays, I feel good, I begin to get real money.
It gets down to select a correct partner who utilizes your money in a right way - that is incorporate it in real business, parts and divides the profit with me.
You may ask, if there are such firms? I'm obliged to tell the truth, YES, there are. Please get to know about one of them:
http://theinvestblog.com [url=http://theinvestblog.com]Online Investment Blog[/url]
Post a Comment