Skip to main content

Market Info

Week Ahead: Long term trend under pressure (Business Standard 28th Jan 2008)
A massive downtrend was triggered by around $4 billion worth of FII sales and margin calls. There was a marginal recovery in the last two sessions but the long-term bull market may have reversed.
The Nifty hit a low of 4448 before pulling back to 5383 with a week-on-week loss of 5.81 per cent. The Sensex bottomed at 15332 before closing at 18361 for a weekly loss of 3.42 per cent. The Defty was down 5.81 per cent as the rupee reacted to massive outflows.
The Bank Nifty was the only index that gained, if marginally. Breadth was poor and the volumes on the recovery were much lower than on the sell-off. The Nifty Junior was down 6.95 per cent. The mid-caps suffered most and lost 9.25 per cent. More
Markets likely to remain choppy (The Economic Times 28th Jan 2008)Global news flow will play a key role in determining the direction of the equity market this week. Events, like the Reserve Bank of India (RBI) meet on Tuesday and the F&O expiry on Thursday, will also play a crucial role and as such most market players expect a volatile session going forward. Broking houses are advising their clients to stick to frontline stocks, even as large players appear reluctant to take fresh positions. While last week did witness some wild swing in the indices, analysts are not yet convinced that the worst is over. A further fall in the range of 500-1,000 points is what most experts are betting on. “To me, the worst is over. Considering Friday’s run up, I guess there could be a further correction of about 500 points,” said India Infoline vice-president (research) Amar Ambani. “Market would be a bit unstable in the near term. Investors should start investing in large-cap stocks now,” he added. More
Sensex may bounce back(The Hindu Business Line 28th Jan 2008)The gut-wrenching correction on Dalal Street in the last two weeks did not result in a single broker-level default. The risk management system stood rock solid despite severe problem in electronic transfer of funds. Maybe, large number broking houses had faced acute liquidity crunch, at least for three consecutive days. But, there was no systemic crisis.
The benchmark index and a few other indices have returned to recovery trail too. This week, market is likely to recover further. It may not be surprising if the Sensex bounces back by another 1,000 to 1,500 points.
So, it’s the global financial market and the excesses in the local market that had caused the savage correction. Soon everything would perhaps be hunky dory. Excesses are dead. Long live excesses! More

Comments

Popular posts from this blog

RBS picks up 0.60% stake in Gateway Distriparks

The Royal Bank of Scotland (RBS) has picked up 0.60% stake in logistic services provider -- Gateway Distriparks. The bank has bought 6.40 lakh shares in the company for a total consideration of Rs 8.32 crore. Gateway Distriparks, incorporated in 1994, is engaged in the business of warehousing, container freight stations, providing handling and clearance of sea borne export-import trade in containerized form.

Day End Report

The Sensex opened with a huge downward gap of 250 points at 13,856, and soon touched a low of 13,731. Another rise in repo rate and Cash Reserve Ratio by the RBI sparked off heavy sell-off in opening trades. However, fresh buying at lower levels helped the index recover all its losses by mid noon trades. A fresh round of buying in late trades saw the index surge to a high of 14,249 - up 518 points from the days low. The Sensex finally settled with a gain of 113 points at 14,220. The NSE Nifty ended with a gain of 60 points at 4,251. The market breadth was marginally positive- out of 2707 stocks traded, 1,370 advanced, 1,264 declined and 73 were unchanged today. Reliance Communications (RCom) zoomed 7.2% at Rs 509. Tata Steel surged 4.5% at Rs 743. DLF and Reliance Infra gained 4.2% each at Rs 458 and Rs 945, respectively. TCS and Bharti Airtel advanced 4% each at Rs 877 and Rs 780, respectively. Ranbaxy was up 3.8% at Rs 545. BHEL gained 3.7% at Rs 1,442. Reliance advanced 3.4% to Rs 2...

Auto industry records highest-ever sales in Jan

Riding on the back of economic growth, easy availability of finance and the continuing fiscal stimulus, the domestic auto industry has posted the highest ever monthly sales in January. The strong growth is both in terms of passenger car volumes and the total vehicle sales. According to Society of Automobile Manufacturers (SIAM) data, the passenger car segment has posted a 32 per cent growth in domestic sales at 145,905 units in January, over the same month last year. The last highest-ever monthly sales in the segment were in March 2009, when it sold 129,358 units. Meanwhile, overall sales across the industry grew 45 per cent at 1,114,157 units. The earlier record of highest ever monthly sales was in October 2006, when the industry had sold 1,017,198 units. Individually, the umbrella passenger vehicle segment posted a 37 per cent growth, while the commercial vehicle (CV) segment grew 131 per cent. Also, the two-wheeler and three-wheeler segments rose 43 and 47 per cent, respectively.