Posts Tagged ‘European markets’

Weekly Update 15th – 19th March

Here’s the weekly update again 🙂

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



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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.

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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.

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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.

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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.

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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.

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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.

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

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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.

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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.

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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.

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

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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.

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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.

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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.

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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.

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

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Stay Tuned for More updates

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SEBI May Reduce the Trading Holidays at Bourses

SEBI May Reduce the Trading Holidays at Bourses

SEBI May Reduce the Trading Holidays at Bourses

Market regulator SEBI is looking into a proposal by several investors to allow fewer trading holidays on stock exchanges in line with the global practice.

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“SEBI is actively considering the proposal to reduce the trading holidays at bourses and is likely to take a decision on the matter soon,” an official close to the development said.


According to analysts, this move by Securities and Exchange Board of India (SEBI) will increase the trading volume in domestic bourses and would also attract foreign investors.


SMC Capitals Equity Head Jagannadham Thunuguntla said,

“From the global standards, India has more number of trading holidays. The reducing of holidays would increase the participation of investors, including the foreign ones, and would increase the trading volume,” he said.

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For 2009, the Bombay Stock Exchange has 19 listed trading holidays and these exclude the weekly Saturday and Sunday off.

In developed countries, the trading holiday at leading bourses are far less.

For 2009, there are only nine trading holidays on the New York Stock Exchange.

In European markets, there are just four holidays this year excluding Saturdays and Sundays.

Recently, Sebi opened gates for longer trading hours for stock exchanges, allowing the bourses to extend market hours by around two-and-a-half hours between 9 am and 5 pm.

The market regulator had further asked the bourses to reset their timings provided they have in place risk management system and infrastructure commensurate to the trading hours.

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Indian Small Car Exports to Europe Started Decreasing !

As scrap page schemes in several European markets are set to lapse,exports by Indian small-car producers have started declining.

As scrap page schemes in several European markets are set to lapse,exports by Indian small-car producers have started declining.

As scrap page schemes in several European markets are set to lapse by the year-end, exports by Indian small-car producers such as Maruti Suzuki and Hyundai Motor have started declining.

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However, on the back of incentives offered by Germany, France and the UK in order to help owners of older cars and vans buy new fuel-efficient vehicles these automakers saw exports increase 35-40 % in the last few months.

Moreover, Germany and Austria concluded their scrappage programmes and other countries are likely to end their schemes by December hence as exports to Europe start decreasing, Indian carmakers have started looking at non-European markets.

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Additionally, till September 30, Maruti Suzuki had exported over 58,500 units,
with A-Star accounting for 33,500 units,
Nissan Pixo at over 25,000 units and
other models contributing about 7,900 units
while its exports of 1.3 lakh units in 2009-10
against 70,023 units in the last fiscal year.

However, Maruti Suzuki’s exports is not likely to cross 1.16 lakh units this year as many European countries have withdrawn their scrappage schemes.

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On the other hand, Hyundai Motor India (HMIL) too benefitted from additional European export orders where more than 50% of their exports are targeted at European countries with Germany accounting for the maximum and aims to export about 2.7 lakh units in 2009-10 against 2.45 lakh units last year.

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Further, in order to qualify for the scrap page benefit, the emission levels in the new car should be below 160 g per km while Germany had created a € 5 billion fund for the old-car scrappage scheme, doling out € 2,500 incentive for a fuel-efficient new car.

France had set aside € 220 million, offering € 1,000 and a deferred tax benefit of up to € 5,000 for a new car.

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Read Full Story on Economic Times.

Stock Markets Reversed Early Losses, Sensex & Metal Stocks..Up :)

India’s benchmark stock index rose the most in a week, reversing earlier losses.

India’s benchmark stock index rose the most in a week, reversing earlier losses.

India’s benchmark stock index rose the most in a week, reversing earlier losses.

Sterlite Industries (India) Ltd. and Hindalco Industries Ltd. led commodity producers higher after metals prices jumped.

Sterlite, the nation’s largest copper producer jumped 3.1 percent after the price of the metal gained and the stock’s rating was lifted at Nomura Holdings Inc.

Hindalco Industries leapt 6.2 percent after aluminum soared.

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The market reversed early losses helped by metal stocks.

Also, gains in Asian and European markets boosted sentiment here.

The Bombay Stock Exchange’s Sensitive Index, or Sensex, added 92.13, or 0.6 percent, the most since Sept. 30, to 16,958.54.

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The gauge had earlier declined as much as 1.5 percent.

The S&P CNX Nifty Index on the National Stock Exchange rose 0.5 percent to 5,027.40.

The BSE 200 Index advanced 0.4 percent to 2,072.31.

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European and Asian stocks gained as higher commodities lifted metal producers, while financial shares advanced after Bank of America Merrill Lynch Global Research recommended European banks.

Europe’s Dow Jones Stoxx 600 Index gained 1.4 percent to 239.19 at 12:26 p.m. in London, while futures on the Standard & Poor’s 500 Index rose 0.8 percent.

The MSCI Asia Pacific Index advanced for the first time in four days today, adding 1.5 percent.

Overseas funds bought a net 13.7 billion rupees ($286.7 million) of Indian stocks on Oct. 1, the Securities and Exchange Board of India said.

The funds have bought 615 billion rupees of Indian stocks this year to date, compared with record net sales of 530 billion rupees for the whole of 2008.

However, Reliance Communications Ltd., India’s second-largest mobile phone operator, led declines by telecom companies on concern lower call charges will cut earnings.

“The price war can impact the revenues of telecom companies by 15 percent to 20 percent,” said Jagannadham Thunuguntla, the head of equities at SMC Capitals Ltd. in New Delhi.

Kotak Securities removed Bharti from its list of 10 most recommended stocks following yesterday’s downgrade.

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On Energy front, Oil & Natural Gas Corp., the biggest energy explorer, added 1.3 percent to 1,184.8 rupees after saying its in talks with Iran’s state-owned Petropars Ltd. to buy a stake in South Pars, the country’s largest natural gas field.

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Oil rises above $70 as markets stabilize!

Oil prices

Oil prices rose slightly above $70 a barrel, recovering only some of the losses suffered on Monday, when investors worried about the economic outlook of China while by late afternoon European time in electronic trading on the New York Mercantile Exchange, the standard crude for October delivery was up 18 cents at $70.14 a barrel.

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However, the contract slumped $2.78 on Monday to settle at $69.96 after a drop in stocks heightened investor concerns that the global economic revival may be weaker than anticipated.

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Whereas China’s standard stock index fell 6.7% Monday while the Dow Jones industrial average fell 0.5%.

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Moreover, most Asian stock indexes rose modestly on Tuesday, including China’s.

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Although European markets were down while it is said that stocks are a leading indicator of the economy, so if there is a slump in stocks, that”s one fewer driver to support high oil prices.

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Additionally, oil will likely trade between $65 and $70 during the next few weeks and a big pullback is expected because they are starting to see more signs of economic life.

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However, in other Nymex trading, gasoline for October delivery rose 1.57 cents to $1.83 a gallon and heating oil gained 1.42 to $1.82 a gallon while in London, Brent crude was up 22 cents at $69.87.

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