Weekly Update of The Market (15th – 19th February)

Hello Friends, here, we bring you the weekly overview of the Indian as well as of the Global economy and latest global business and industry updates.

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Weekly Update of The Market (15th - 19th February)

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The much awaited gains in global markets which came in the week gone by, was a big relief for investors.

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Improving Australian Jobless rate (falling) to 5.3% from 5.5% & China‘s lending surged to 1.39 trillion yuan ($203 billion) in January, more than in the previous three months together lowered the concerns of global economic recovery and proved to be some of the triggers for the global markets gain.

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European Union statement that it is ready to support Greece somewhat eased pressure but China central bank another move to hike reserve requirement by 50 basis point to rein the credit growth spoiled the mood of the markets.

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Chinese banks disbursed 19% of the lending target in January alone.

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The existing reserve requirements stood at 16 percent for the biggest banks and 14 percent for smaller ones.

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🙂

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Back at home, CSO expectations of decline in farm output to be contained within 0.2 per cent & robust recovery in industrial performance rejoiced the markets that GDP growth may come even better for the current fiscal year.

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On the flip side, market is cautious from budget outcomes on expected move towards fiscal consolidation.

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High fiscal deficit together with high inflation pose some long term risk for the equity market.

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The much awaited reforms in the areas FDI, BFSI & fuel and fertilizer subsidiary & a roadmap for implementation of Goods & Services Tax & Direct Tax Code can spark the rally in the domestic market.

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In the coming week, we may see some activity in capital goods sector on the back of very good IIP numbers.

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Industrial production witnessed a growth of 16.8% on Year on Year basis while cumulative growth for the April to December period has now inched up to 8.6% over the corresponding period.

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Overall the trend of most asset classes including stock markets around the world is down due to rising dollar index.

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Going ahead in the budget, we expect volatility to increase and markets to see big moves up and down.

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🙂

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International cues are positive on the fundamental side but Europe problems and stimulus withdrawal along with rising inflation are having negative effect.

One should remain cautious going ahead.

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Nifty faces resistance between 4900-5000 levels and Sensex between 16400-17000 levels.

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A pick up in investor’s sentiments, softer dollar amid expectation of rescue plan for Greece have rejuvenated most of the commodities, especially metals and energy.

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We are expecting a thin trading in the beginning of the week, as US market is closed on Monday on the occasion of “President Day”.

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Absence of participation of Chinese market due to celebration of New Year holidays can limit the volatility of commodities further.

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If we talk about the trend, overall commodities may trade in a range now.

Any improvement in Japanese GDP data can give further boost in the prices.

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🙂

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Stay Tuned for More on weekly updates.

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Note : For More Latest Industry, Stock Market and Economy News and Updates, please click here

One response to this post.

  1. Thank you for all the great posts from last year! I look forward to reading your blog, because they are always full of information that I can put to use. Thank you again, and God bless you in 2010.

    Reply

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