This bull market has legs, but time is ripe for some correction

The domestic equity market opened with a gap up and the Nifty50 broke the strong resistance at 9,200 on the back of constant FII buying, which has even continued in the new financial year.

The big event of the week was RBI money policy review on April 6, in which the monetary policy committee unanimously agreed to keep the repo rate unchanged, but hiked the reverse repo rate by 25 basis points from 5.75 per cent to 6 per cent.

This will give a big respite to banks, especially PSU banks, which are sitting on huge liquidity, which will now make them earn more by 25 basis points extra. This will also compensate for the losses incurred due to rising bond yields.

Newly appointed Uttar Pradesh Chief Minister fulfilled the election promise by waiving off of over Rs 36,000 crore farm loans. This flies contrary to prudent fiscal discipline as highlighted strongly by the RBI Governor. Considering the size of Indian banks, the loan waiver will not have deep any impact in the long run.

Events of the Week

Air strikes by American Forces on Syria caused a spike in oil prices. This was an unexpected change of stance by US President Donald Trump on Syria, where he had refrained from interfering earlier. However markets across the world reacted maturely and side-stepped the issue, at least temporarily. The merger of SBI and associated banks went through in record time, an unheard practice for the government machinery. This will lead to a round of consol ..

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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

IT giants beat the sTREET

and HCL Technologies, to do an encore in their December 2013 quarter earnings. All three companies also exuded confidence about the future demand environment. N Chandrasekaran, chief executive officer & managing director of TCS, said he believed next year would be a stronger one than 2013-14, as customers executed their business plans in a relatively stable environment. HCL Technologies Chief Financial Officer Anil Chanana said the deal pipeline looked significantly better. “We won 15 large deals in this quarter — about half of them in the IMS (infrastructure management services) space. We remain confident of the growth ahead as client budgets remain stable”. Infosys had also improved its revenue guidance for the financial year from 9-10 per cent to 11.5-12 per cent. For the December 2013 quarter, TCS’ revenues grew 32.5 per cent to Rs 21,294 crore and net profit stood at Rs 5,314 crore, up 49.6 per cent from that in the year-ago period. For Infosys and HCL T

Bulls & Bear Hfund of India

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