Posts Tagged ‘Dalal Street’

Mid-cap and Small-cap Shares Outperformed Blue Chips in 2009

mid-cap and small-cap shares outperformed blue chips

2009 was a year when stock market minnows beat the big boys of Dalal Street.

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This year, mid-cap and small-cap shares outperformed blue chips, setting the momentum for 2010.

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Stocks of companies with medium and small market capitalisations shot up more significantly than the scrips with larger valuations.

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This was all happening when stock marketΒ  was witnessing a recovery across the board in the year.

Market experts said the smaller capitalization stocks do not need huge amounts of investments to rally and so managed to outperform their peers in the benchmark index, Sensex in the year.

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According to an analysis of the performance of mid-cap and small cap indices on the Bombay Stock Exchange, the small-cap index has given a return of as much as 115 per cent, while the mid-cap index has gained nearly 100 per cent so far in 2009.

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In comparison to the performance of its smaller peers, the 30-share benchmark index, Sensex, gave a return of 75.3 per cent to investors.

“The rally in the mid-cap and small-cap have been stronger than that of the large cap index of Sensex.

Mid-cap and small-cap indices comprise stocks require relatively smaller investment as they are available at cheap rates in the market,”

SMC Capitals Ltd Equity Head Jagannadham Thunuguntla said.

The mid-cap and small cap indices track the performance of companies with market capitalisations that are a fifth or tenth of that of blue chip firms.

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Sensex to Seek Direction from RBI’s Monetary Policy Review

Sensex to Seek Direction from RBI's Monetary Policy Review

Sensex to Seek Direction from RBI's Monetary Policy Review

Dalal Street will closely track the Reserve Bank‘s monetary policy review this week to seek direction, as weak global and domestic cues may continue to dampen sentiments in opening trade on Monday, experts say.

Besides, the expiry of the futures and option contracts this week is expected to keep the market volatile.

With global markets deteriorating and shares of Reliance Industries acting as a drag, market may open weak on Monday.

Marketmen said as valuations are overstretched, investors are now booking profit even at the slightest bad news.

Also, liquidity crunch is keeping frontline stocks under pressure.

On Friday, RIL scrips declined by 4.5 per cent.

β€œRIL, which is already reeling under uncertainty over the ongoing court case, would face further pressure. The scrip would be a dampener on the already weak market sentiment,” SMC Global Vice President Rajesh Jain said.

The Bombay Stock Exchange barometer Sensex lost three per cent, its biggest weekly fall in 11 weeks, to 16,810.81 points.

The index is up over 74 per cent so far in 2009, aided by foreign fund flows of over $14 billion.

Dalal Street Investors Hoping for Diwali Cracker ;)

Dalal Street Investors Hoping for Diwali Cracker

Dalal Street Investors Hoping for Diwali Cracker

September, for Dalal Street investors, was an unusually good month, raising hopes of a better Diwali in October after two consecutive years of subdued celebrations.

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During the month, sensex gained in 14 of the 20 session and added 1,461 points, or 9.3%, to 17,127.

Brokers and dealers admitted that much of these gains came on the back of liquidity, the inflow of money from abroad.

BSE data showed that so far this month net buying by FIIs in the secondary market alone was at a whopping Rs 18,200 crore, nearly $4 billion.

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On last Wednesday of september alone, FIIs net bought stocks worth over Rs 1,000 crore.

Sebi data showed net FII buying in 2009 at $12.2 billion, the second highest yearly inflow ever for the Indian market.

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However, going forward there could be some correction, market participants feel.

October is a short month, and one would be wary of the latest move in the index, which has been very fast.

Based on cues from the US, one would not be surprised to see a correction of about 10%, to say 4,600 nifty by end of October, which is healthy in our view, experts said.

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On last Wednesday of september, Nifty ended at 5,084.

With the Bharti Airtel-MTN deal off and the US markets showing weakness in early trades, the market could witness some correction in coming days.

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Greed and Fear : Factors that Drive the Stock Market !

fear and greed are the two key factors that drive the stock market :)

Everyone knows that fear and greed are the two key factors that drive the stock market.

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If you talk to any seasoned investors in the market, they would tell you of the stories of how people got carried away by greed and lost all their money in the process.

Stories about people spooked by β€˜fear factor’ also do the rounds of Dalal Street at regular intervals.

According to a study by SMC Capitals, β€œthe elements of fear and greed are clearly apparent in the trends of allocation of assets by the investors in terms of cash and stocks.’’

The trend, says the study, can be seen at the levels of market cap and bank deposits in the economy.

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When there is fear among the investing community, the bank deposits go up.

And, when there is widespread optimism, the market cap levels go up.

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β€œIf you look at investor behavior in the last three years,
the pattern is very clear:

the first year was of over-optimism,

the second was of over-pessimism and

now it’s the recovery period.

This trend is clearly visible if you look at the market cap and bank deposits (or the real wealth),’’ says Jagannadham Thunuguntla, equity head of New Delhi-based SMC Capitals.

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In the study, SMC has compared the BSE market cap from the period starting January 2007, with the aggregate bank deposits in the bank deposits.

The relative measure of the entire market capitalisation of BSE as a percentage of aggregate bank deposits in the entire banking system demonstrates the mindset of the investor community.

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Read the Full Story on The Economic Times

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Festivals and Trading Holidays Set to Keep Dalal Street Less Lively This Week :)

Despite bullish sentiment on hopes of strong quarterly results from firms, the Dalal Street is likely to less lively this week

Despite bullish sentiment on hopes of strong quarterly results from firms, the Dalal Street is likely to less lively this week

Despite bullish sentiment on hopes of strong quarterly results from firms, the Dalal Street is likely to less lively this week, as festive mood and fewer trading sessions would see investors withhold their positions and postpone buying, analysts said.

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Brokers believe the market sentiment will remain positive, even as investors will get only three trading sessions before the second quarter results of companies starts coming in.

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“The market is expected to remain in consolidation phase on the back of less trading sessions and festive season,” SMC Global Vice-President Rajesh Jain said.

The market would trade only for three days this week, as Monday and Friday will be trading holidays on the occasion of ‘Dussera‘ and ‘Gandhi Jayanti‘, respectively.

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Over the week, the BSE Sensex slid 193.43 points, or nearly 1.14 per cent and closed at 16,693 points.

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The under current in the market is bullish, there are not much expectations by investors for this week, while stocks may also look for global cues,experts observed.

The result season will kick start with IT major Infosys scheduled to announce its second quarter results on October 9.

During the last week, foreign institutional investors have put in over Rs 6,528.1 crore in Indian markets.

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D-Street may inch towards consolidation: Analysts

Dalal Street

A wave of consolidation is likely to greet Dalal Street this week as concerns over rainfall shortage would pull down investor sentiments and keep the market under pressure, analysts said.

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“The market would remain range-bound and would look for a positive trigger amid the dampening effect on the possibility of a drought-like situation in the country,” Ashika Stock Brokers Research Head Paras Bothra said.

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Analysts also said there might be some positive bias in the movement of the market but absence of any major trigger might shift focus on the rain God.

“Delayed monsoon has made the market totally indecisive of the next move.

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The impact of drought would be felt in some time from now and that is holding back investor confidence to enter market,” SMC Capitals Equity head Jagannadham Thunguntla said.

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Besides, with the US economy showing signs of revival and Germany and France emerging out of the recession quicker than expected, analysts feel it could bring in a positive bias in the market.

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“As it is now a known fact that the major economies are pulling themselves out of the recession, I do not foresee any major collapse in the market in near term as it is all positive news around,” Bothra added.

The BSE Sensex gained 251 points, or 1.66 percent in the past week and closed at 15,411.63 points.