The 30-share BSE Sensex closed at 18,167.03, up 93.13 points or 0.52% and the 50-share NSE Nifty rose 35.65 points or 0.66% to settle at 5,452.10. For the week, both the equity benchmarks ended flat.
In the last one hour of trade, the Sensex wiped out around 100 points from its day's high due to profit booking at higher levels. Sell-off was seen in private power companies' shares along with Sterlite Industries, Reliance Communications, Tata Motors, M&M, Hindalco, BPCL and Ranbaxy Labs.
How to trade now?
OIL, Technology Looks good, Avoid RIL (Buy Cairn: If Vedanta picks up 51% stake in Cairn India via Sterlite then it will not be too materially positive for Sterlite. Analysts give reasons that the cash could have had better use from a company point of view so it may dampen sentiment on Sterlite a bit.)
There is a resistance in Large-Cap Sector
It is time to Shuffle your portfolio and book some profit as well
If the market slips to 5150-5200 there is a good opportunity to invest into Small or Mid Caps
One can see Range bound markets
On banking stocks
According to Analysts, banking stocks can out-perform for some more time now; However they warns that there may be concerns on those stocks in the near future but on aggregate banks would be out performers
----Open Online Trading Account with Wealth Securities, Vasai and earn with the help of advises provided by Wealth Securities... Call today...9321318382
Saturday, August 14, 2010
Thursday, August 12, 2010
Industrial growth slides to 13-month low
After months of rapid double digit growth, the Indian industry seems to be cooling off as industrial growth slipped into single digits in June. The fall in industrial production was because of a combination of statistics and a slight moderation in the pace of growth.
Leading industry lobbies, however, voiced no worries and said the drop in production to single digit was due to a high base effect.
'The fall in industrial production was on expected lines as it largely reflects a higher base in the same period last year,' said Chandrajit Banerjee, director general of Confederation of Indian Industry (CII).
India's industrial production grew at a much slower rate of 7.1 per cent in June, compared to 11.5 per cent in the previous month. Manufacturing output rose 7.3 per cent while mining and electricity grew at 9.5 per cent and 3.5 per cent respectively.
While a high base effect was expected to weigh on the index of industrial production this month, the data came in towards the lower end of expectations leaving policy makers disappointed.
Finance Minister Pranab Mukherjee said industrial growth of 7.1 per cent in June, was below his expectations and it could have been better.
"I would say no if its 8.5% GDP growth then industrial growth should be faster than that," said Planning Commission Deputy Chairman Montek Singh Ahluwalia.
The disappointment came in from the capital goods sector where output grew by just over 9 per cent sharply below the 34 per cent growth seen in May.
Growth in consumer durables growth also slowed marginally over last month but remained at a healthy 27.4 per cent.
However, economists feel that a slight moderation in industrial growth may continue over the next few months.
"Global demand coming off, domestic supply side constraints and adverse base effect are all pointing towards a moderation in IIP growth going forward as well. 6-8 per cent is the rough range where IIP growth rate will continue over the next 6 months or so,” said Sonal Varma, an economist with Nomura.
The slip in industrial growth may not do much to change the perspective of policymakers. With the reserve bank maintaining that inflation remains a key concern, more hikes in interest rates still seem inevitable.
Leading industry lobbies, however, voiced no worries and said the drop in production to single digit was due to a high base effect.
'The fall in industrial production was on expected lines as it largely reflects a higher base in the same period last year,' said Chandrajit Banerjee, director general of Confederation of Indian Industry (CII).
India's industrial production grew at a much slower rate of 7.1 per cent in June, compared to 11.5 per cent in the previous month. Manufacturing output rose 7.3 per cent while mining and electricity grew at 9.5 per cent and 3.5 per cent respectively.
While a high base effect was expected to weigh on the index of industrial production this month, the data came in towards the lower end of expectations leaving policy makers disappointed.
Finance Minister Pranab Mukherjee said industrial growth of 7.1 per cent in June, was below his expectations and it could have been better.
"I would say no if its 8.5% GDP growth then industrial growth should be faster than that," said Planning Commission Deputy Chairman Montek Singh Ahluwalia.
The disappointment came in from the capital goods sector where output grew by just over 9 per cent sharply below the 34 per cent growth seen in May.
Growth in consumer durables growth also slowed marginally over last month but remained at a healthy 27.4 per cent.
However, economists feel that a slight moderation in industrial growth may continue over the next few months.
"Global demand coming off, domestic supply side constraints and adverse base effect are all pointing towards a moderation in IIP growth going forward as well. 6-8 per cent is the rough range where IIP growth rate will continue over the next 6 months or so,” said Sonal Varma, an economist with Nomura.
The slip in industrial growth may not do much to change the perspective of policymakers. With the reserve bank maintaining that inflation remains a key concern, more hikes in interest rates still seem inevitable.
Wednesday, August 11, 2010
Markets crack: Is it first sign of downward break-down?
The benchmark Sensex shed 150 points on sell-off across the globe post FOMC announcement. Financial and metal companies' shares were leading the losers followed by technology, capital goods, power and realty shares. Heavyweights Reliance Industries, ITC and Bharti were among the other losers.
The 30-share BSE Sensex closed at 18,070.19, down 149.80 points or 0.82% and the 50-share NSE Nifty fell 40.10 points or 0.73% to settle at 5,420.60.
RBI’s discussion paper on new bank license
Calling it a positive move, Analysts says that the market participants were expecting the guidelines to be out for quite some time now, so it is positive for the sector. If the industrial houses are being allowed to go through the inorganic route from the regional rural banks then obviously it is very good for the health of the banking sector because that is the relatively weaker part within the banking system here in India
-
We provide Investment Ideas to our clients, for more information email us on wealthsecurities@gmail.com
The 30-share BSE Sensex closed at 18,070.19, down 149.80 points or 0.82% and the 50-share NSE Nifty fell 40.10 points or 0.73% to settle at 5,420.60.
RBI’s discussion paper on new bank license
Calling it a positive move, Analysts says that the market participants were expecting the guidelines to be out for quite some time now, so it is positive for the sector. If the industrial houses are being allowed to go through the inorganic route from the regional rural banks then obviously it is very good for the health of the banking sector because that is the relatively weaker part within the banking system here in India
-
We provide Investment Ideas to our clients, for more information email us on wealthsecurities@gmail.com
Buy United Phosphorus
Buy United Phosphorus @ 185
Target 240 Rs. in 2 months time period
-
Wealth Securities,
-Open Trading account with us, to experience excellent service-
Call- 9321318382
Target 240 Rs. in 2 months time period
-
Wealth Securities,
-Open Trading account with us, to experience excellent service-
Call- 9321318382
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