Market Macro Environment

Last week ended with the market gaining over 1% though it came under pressure on the last day of the week. Positive sentiment prevailed during the week as the commodities continued to remain under pressure with most of the industrial commodities down by double digit during the calendar. FIIs were net buyers of Rs. 31 bn worth of equity during the week. RBI cut interest rate third straight time to revive growth by cutting Repo rate by 25 bp. However, the governor was hawkish in his tone citing the possibility of a resurgence in inflation pressures and a high CAD it described as “by far the biggest risk to the economy” thereby capping the market gains. A report yesterday signaled Indian manufacturing expanded at a slower pace in April with HSBC PMI index falling to 51 from 52. Gains during the week were led by FMCG (7.5%) and Technology (4.4%).

As we go into next week market will be looking forward to BoE rate decision and initial Q1 GDP estimates for Indonesia and HK besides host of data from US and Eurozone. India too announces IIP for March and Export data for April. HDFC and NTPC are the major companies due to announce results next week. Out of 12 sensex companies that have announced results till date, only 2 have missed estimates. Outcome of Karnataka election which goes to poll on Sunday would also have a bearing on market sentiment. Currently BJP is at the helm. We expect markets to broadly remain range bound with profit booking emerging at higher levels.

Comments

Wizard of Dalal Street: Govind Parikh's investment mantra

Wizard of Dalal Street: Govind Parikh's investment mantra Govind Parikh of Govind Parikh Securities says selling right is more important than correct buying. He says it is necessary to keep a lot of cash. "We keep an average 10 percent cash in our portfolio," he says I like to buy things in a bad market. Additionally, don't look current cash flow, concentrate on future cash flows — that is what I look at," says Govind Parikh of Govind Parikh Securities. He advises investors to buy good quality stocks when the market crashes. While sharing his investment philosophy with ace investor Ramesh Damani, on the Wizards of Dalal Street, Parikh says management integrity is very important when deciding which stock to bet on. He tells investors not to buy stocks impulsively. According to him, selling right is more important than correct buying. He says it is necessary to keep a lot of cash. "We keep an average 10 percent cash in our portfolio," he says. He al...

LIC IPO Shorts The largest market capitalization in the making. The govt selling 5 percent stake...... The cuttoff price 2100 Listing price 3000 or more shall be included in the nifty Pro Large base of policies Large Market Share Cons Decling market share viz viz private companies higher cost insurance policies Bottom line can apply for LIC IPO for listing gains..... For More do have a look at the Link Below https://www.youtube.com/watch?v=VPGp5V1ecDM

NASDAQ's Crack Will Rattle Global Equities During the week, the confidence of the bulls got shattered when tech-focused US companies crashed rattling the entire financial markets. Nasdaq's crash does not look like a normal correction but seems like a bigger downward spiral unfolding after valuations sky-rocketed. Given that US elections are only 52 days away, it seems unlikely that US markets will make fresh highs again and there is every likelihood that selling pressure may continue even in broader markets. Crude oil too has given up most of its gains and prices are below USD 40 per barrel on expectations of lower demand going ahead which suggests that global recovery might take longer than earlier anticipated. In contrast surprisingly, gold's move is not hinting at any major crash in the financial markets, given that gold prices consolidated and remained steady even when Nasdaq plummeted. One of the important ways to analyze the psyche of an investor is by measuring mut...

Bulls & Bear Hfund of India

Search This Blog