Posts Tagged ‘consumer durables’

Market May Continue to See Sideway Movements: Experts

Market To Move sideways : Expert

Market To Move sideways : Expert

After last week’s correction, witnessing a dip of 492 points, market experts said this week might continue to see sideway movements with slight downward bias.

They opined it was basically the momentum play which took the markets beyond 17,000 points and therefore downside movement was expected.

They maintained that currently the markets are over stretched and any rise in the short-term is unlikely.

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They ruled out that Reliance’s bonus shares or Infosys’s better than expected earnings will stoke the markets with positive sentiments this week.

In the previous week, CNX Nifty declined 138.2 points or 2.72 per cent on a weekly basis to close at 4,945.20 last Friday against last week’s close of 5,083.40.

Similarly, Bombay Stock Exchange Sensitive Index, or Sensex, slipped below 17,000 mark to close the week at 16,642.66, down 2.87 per cent.

Brokers pointed out that this week, Nifty may bottom out at 4,800 levels. It should not come below this as fundamentals of the country are intact.

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Last week, indices which ended in the green include consumer durables, fast moving consumer goods, health care, metals and power.

On the other hand, auto, bankex, capital goods, IT, oil & gas and realty index closed in the red.

Jagannadham Thunuguntla, equity head at SMC Capitals, said,

“Markets are facing resistance. It is difficult to expect sectors to outperform.  Though some stocks could do well.  But it seems, market is not in a mood to hear any good news.”

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This week, experts are betting big on telecom, infrastructure, consumer durables and banking space.

They held bearish stand on sectors like IT and auto.

Experts said that from this week onwards, corporate earning seasons will start which market will closely watch for.

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Govt all set to introduce a new IIP in about 4 months :)

indian industry

As the government is expected to introduce a new index of industrial production (IIP) in around 4 months, the benchmark for measuring industrial production in India is all set to change.

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However, the new index will use 2004-05 as the base year of calculation instead of 1993-94.

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The number of commodities will go up to around 850, from 543 whereas nearly 30% of the existing commodities will be swapped by new ones.

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It’ll certainly be a much more recent picture, no question about it.

As in recent times, the product composition has changed dramatically, so both the widening and the deepening of the economy will be reflected.

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Moreover, the weight assigned to different product groups as part of the final index will also change since they are presently incompatible with the changes in production patterns.

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Such as, mobile phones are not included in the index while LCDs are not included in television sales.

Moreover, the weightage given to autos is well below their importance in the economy.

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However, it is said that the weightages will change in order to fix these like the weight for basic goods will rise by 5% points while that for capital goods will rise by 5.7% points.

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Morever, the intermediate goods will see the biggest hit, losing 7.7% points and consumer durables will increase in weight while consumer non durables will be lighter by 5% points.

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Change in weights of different commodity groups:

Change in weights of different commodity groups

Similarly, electricity will rise by close to 2% points but manufacturing will take a hit of over 7.5% points.

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The new IIP index will definitely give us a better idea of the kind of changes industrial production has undergone in the past decade.

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However, collection of the base data in time would pose as a major challenge for the government as different departments are responsible for collecting the data.

In recent times, collecting data from the manufacturing sector, is already turning out to be a problem as companies aren’t responding fast enough.

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