Archive for March 15th, 2010

Weekly Update 15th – 19th March

Here’s the weekly update again 🙂

.

Its weekly overview of the Indian as well as of the Global economy.



.



Despite volatility throughout the week, Indian market posted fifth consecutive weekly gains, the biggest stretch of weekly gains since June 2009, but closed flat on Friday erasing early gains as traders booked profits in selected stocks due to lack of triggers from global markets and as in line January IIP failed to lift sentiments of the market participants.

.

On the contrary, though the broader index, Nifty closed in green but there was selling in mid cap and Small cap stocks as evident from the fact that BSE Midcap Index was down -0.51 per cent and BSE Small cap Index moved -0.79 per cent lower.

.

On the Global Markets front; except Shanghai Comp., all the Asian markets closed in green.  🙂  European markets too closed in the positive terrain led by banking stocks.

.

Both FTSE 100 and CAC 40 were up by 0.47 per cent and 0.42 per cent respectively. 🙂

Even mixed economic reports held the US stock market to only modest moves on Friday but gains for the week were strong.

.

Uneven figures on retail sales and consumer confidence gave investors little new insight into the economy. If we talk about Indian economy, some concerns pertaining to further tightening in monetary policy after a partial withdrawal of fiscal stimulus in the budget have emerged in the light of robust manufacturing activity as indicated by IIP numbers.

.

A sustained recovery in India’s industrial output which stood at 16.7% in January on a YoY basis as against 17.6% YoY growth recorded in the month of December and ballooning inflation is expected to force RBI to hike policy rates in its monetary policy review on 20’Th April.

.

The food price index rose 17.81% in the 12 months to 27 February 2010, while the fuel price index was up 11.38%.

.

FIIs net investment in Indian equity markets has crossed $75 billion mark. So far in calendar year 2010, FIIs have made net investments of $2.5 billion, of which $2.3 billion net flow made in last eight trading days since Union Budget 2010 held on February 26, reflecting the strong economic fundamentals of Indian economy, as well as confidence of the foreign investors in the growth and stability of the Indian market.

.

For the forth coming weeks, advance tax payment by the major corporate will give an indication of fourth quarter earnings & would help market to take further direction in the coming week.

.

Overall trend of world markets is up. The fall in the dollar index and rise in Euro from lower levels is giving support to stock markets.

.

Nifty has support between 5030-4950 and Sensex between 16700-16400 levels. The coming week will give more clarity after the FOMC meet.

.

As the rally after the budget had been swift and markets had a five week continuous rally, it seems that our markets are more in a consolidation mode before they take their next direction.

.

Right now, investors are mostly following the “Wait & Watch” strategy and refraining to build heavy position at the time when market is expecting mixed outcome of economic releases and dollar index is oscillating between ranges.

🙂

Market is waiting for clear direction. Recent downtrend in LME stocks is offset by still-slow pace of demand recovery, and we expect a range trading in base metals complex with downside bias.

.

News that China has started work on its second phase of state strategic oil reserves in the southern province of Guangdong, is limiting the downside in crude oil prices.

.

However, cautious trading is advised here as it appears overbought.

.

Stay Tuned for More updates

.

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