Posts Tagged ‘Ambani Brothers’

Market to Go Volatile This Week, Due to Host of Factors

Market to Go Volatile This Week, Due to Host of Factors

The Market is likely to remain volatile this week as a host of triggers are set to guide investor sentiments. These factors are :

1. Expiry of the October series of derivatives contracts,

2. September quarter results of some key companies such as Reliance Industries and

3. the RBI money policy review.

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Global cues may also induce some choppiness in the market.

Noted Market analyst, Jagannadham Thunuguntla, head of equities at SMC Capital quoted that;

“The market is facing heavy pressure.  There a wide gap between fundamentals and stock valuations.  The second quarter results have come up less than what most investors had anticipated”.

He also added “though the average profits of companies, which have so far reported second quarter results, have grown 30-40 per cent on cost-cutting measures, growth in net sales has been sluggish“.

Also Thunuguntla said that “we have huge liquidity in the market thanks to the 100 per cent rally and this has helped the market sustain at this level till now. No doubt, fundamentals are catching up with valuations slowly”.

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Thunuguntla said the market was in a consolidation phase.

“It may remain volatile this week ahead of the expiry of near-month futures and options contracts and the RBI policy review.”

On the global front, the US will disclose its third quarter GDP figures on Thursday.

Meanwhile, the rate of inflation jumped to 1.21 per cent for the week ended October 10 against 0.92 per cent a week ago.

The BSE Sensex slipped 512.01 points, or 2.96 per cent, last week to close at 16,810.81.01.

The Nifty index on the NSE dipped 145.10 points, or 2.82 per cent, to end the week at 4,997.05.

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According to other observers, Nifty has a support at 4,900.
Market sentiment may get hurt if this level is breached.

Thunuguntla also said investors would keenly follow the quarterly results of Reliance Industries as well as global cues.

“Amid the fight between the Ambani brothers, investors will watch the RIL results keenly.  Global cues will also be followed after a few bad economic numbers from the US last week,” he said.

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Foreign institutional investors (FIIs) on Friday remained net sellers, offloading equities worth Rs 295.70 crore, according to figures available at the website of market regulator Sebi.

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Statements by Ambani Brothers Pushes Shares Up

Statements by Ambani brothers nudge shares up

Statements by Ambani brothers nudge shares up

The shares of companies in the respective stables of the two feuding Ambani brothers opened on a higher note Monday, a day after the olive branch from younger Anil, that was welcomed as a “positive indicator” by Mukesh.

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Reliance Natural Resources, the energy arm of Anil Ambani group that is fighting a legal battle on gas supplies with the Mukesh-led group, was ruling at Rs. 86.35 with a gain of 4.04 percent, an hour into trading, after touching a high of Rs. 87.15.

Reliance Industries, the flagship of the Mukesh-led group, was quoting 1.58 percent higher at Rs. 2,133 after touching Rs. 2,140.00, data with the Bombay Stock Exchange (BSE) showed.

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Analysts said though the movement forward was positive it was more in the form of a token rise, as many issues remained unresolved, including the crucial matter over supplies of gas from Reliance Industries to the Anil Ambani group.

“There are too many ifs and buts,” said Jagannadham Thunuguntla, equities head of leading brokerage and capital markets consultancy SMC Capital.

“Till the market gets a clear indication, these developments may not make too much of an impact.”

After a pilgrimage to two holy shrines Sunday, Anil sent a conciliatory message to elder brother Mukesh, saying there was ample scope to end their dispute amicably.

“There can be no better gift to my mother, Smt. Kokilaben Ambani, in her 75th year, and to the legacy of our beloved father, Shri Dhirubhai Ambani, the proud creator of the Reliance Group,” Anil said after the pilgrimage to Badrinath and Kedarnath.

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The move was welcomed by the other side, which said there can be no contentious issue that cannot be resolved by mutual dialogue.

But the statement by Reliance Industries also made it clear that the dispute over gas has to be settled by the Supreme Court.