Equities likely to make cautious start amid mixed global cues
Local equities are likely to make a cautious start on Tuesday on the back of mixed cues from global markets. Wall Street ended higher overnight in a choppy session, while Asian markets were trading mostly lower this morning. Movement of local bourses will depend upon the performance of the global markets as the day progresses. Initially, there might be a bit of hesitation among investors; however, if Asian markets can recover and Europe starts well, it should be a tremendous help to the local markets. There arenâ??t any major triggers that the markets can look forward to and therefore it would mainly look at world-wide equities for cues. Stock and sector specific action may be seen depending upon the news flows.
Domestic markets, on Friday, missed out on an opportunity to end its four-day losing streak despite receiving decent support from world-wide equities. After making a promising start and showing steadiness until noon, the markets lost ground in the second half of trade to finally end in the negative territory. The day saw the S&P CNX Nifty plunge below another psychological level of 4,750 and 30-share BSE Sensex below the 16,000 mark. Broader indices, too, found it difficult to hold on to the gains as traders followed
the rule implying 'buy on dips and sell on upmoves'. A major damage was done by telecommunication stocks after Bharti Airtel reported a lower-than-expected earnings and DoTâ??s decision to freeze all 2G spectrum allocation pending the enquiry by central agencies in alleged irregularities in distribution of 2G licenses in 2007. The oil & gas counter, led by heavy-weight Reliance Industries, too was equally responsible for hampering confidence in the market. Auto and banking shares tussled hard throughout the session, but found no success in helping markets retain early gains. Finally, the 30-share BSE Sensex dropped 156.44 points or 0.97% to end at 15,896.28, while the S&P CNX Nifty plunged 38.85 points or 0.82% to settle at 4711.70.
Markets likely to make flat to positive opening
Domestic markets are likely to make a flat to positive opening on Wednesday as most Asian equities were trading in the green, but persistent concerns over the route markets would adopt in near-term may keep gains under check. With local equities ending lower for six consecutive sessions, it would take some time to get the confidence back into the markets, especially among smaller investors. However, bottom-fishing in shares with strong fundamentals and reasonable valuations will continue to happen. Foreign investors turning out to be net buyers despite a major fall in markets yesterday gives an indication that they continue to invest in potential shares without much hesitation.
Local equities are likely to make a cautious start on Tuesday on the back of mixed cues from global markets. Wall Street ended higher overnight in a choppy session, while Asian markets were trading mostly lower this morning. Movement of local bourses will depend upon the performance of the global markets as the day progresses. Initially, there might be a bit of hesitation among investors; however, if Asian markets can recover and Europe starts well, it should be a tremendous help to the local markets. There arenâ??t any major triggers that the markets can look forward to and therefore it would mainly look at world-wide equities for cues. Stock and sector specific action may be seen depending upon the news flows.
Domestic markets, on Friday, missed out on an opportunity to end its four-day losing streak despite receiving decent support from world-wide equities. After making a promising start and showing steadiness until noon, the markets lost ground in the second half of trade to finally end in the negative territory. The day saw the S&P CNX Nifty plunge below another psychological level of 4,750 and 30-share BSE Sensex below the 16,000 mark. Broader indices, too, found it difficult to hold on to the gains as traders followed
the rule implying 'buy on dips and sell on upmoves'. A major damage was done by telecommunication stocks after Bharti Airtel reported a lower-than-expected earnings and DoTâ??s decision to freeze all 2G spectrum allocation pending the enquiry by central agencies in alleged irregularities in distribution of 2G licenses in 2007. The oil & gas counter, led by heavy-weight Reliance Industries, too was equally responsible for hampering confidence in the market. Auto and banking shares tussled hard throughout the session, but found no success in helping markets retain early gains. Finally, the 30-share BSE Sensex dropped 156.44 points or 0.97% to end at 15,896.28, while the S&P CNX Nifty plunged 38.85 points or 0.82% to settle at 4711.70.Markets likely to make flat to positive opening
Domestic markets are likely to make a flat to positive opening on Wednesday as most Asian equities were trading in the green, but persistent concerns over the route markets would adopt in near-term may keep gains under check. With local equities ending lower for six consecutive sessions, it would take some time to get the confidence back into the markets, especially among smaller investors. However, bottom-fishing in shares with strong fundamentals and reasonable valuations will continue to happen. Foreign investors turning out to be net buyers despite a major fall in markets yesterday gives an indication that they continue to invest in potential shares without much hesitation.
Maxwell Ind launches Eminence brands in India
Earlier, Maxwell Industries had inked a pact with the French company for manufacturing, distributing and selling the men's & women's innerwear, pijamas and socks under the brand name 'Eminence'.
Maxwell Industries, incorporated in 1991, is a leading manufacturer of high quality 100% cotton yarn for hosiery/weaving industries in India.
Indian stocks
Led by strong gains in realty and metal stocks, the Indian markets rose sharply in today's trades and in the meanwhile recouped a large part of yesterday's losses. On the BSE, there were more than two stocks that gained for every stock that closed in the negative.
The BSE-Sensex and the NSE-Nifty closed with gains of around 500 points (3.3%) and 150 points (3.4%) respectively. Stocks from the small cap spaces also followed suit, as the BSE-Midcap and BSE-Smallcap indices gained by 3.5% and 2.2% respectively. The rupee was trading at 47.07 to the US dollar at the time of writing.
The Indian markets closed today with the biggest gains in Asia. These were distantly followed by Hong Kong and Singapore where stocks ended with gains of around 1.8% and 1% respectively. European markets have also opened on a positive note.
Buying in gold continues as well, with the yellow metal nearing almost 1,100 per ounce in the international markets. This follows the Indian central bank RBI's recent buying of 200 tonnes of gold from the IMF. This underscores gold's increasing status as an official reserve and has fuelled speculation that other governments, including China's, may be ready to diversify their reserves.
The BSE-IT index was amongst the leading gainers today as it closed up by around 4%. Major gainers here included the likes of Infosys, TCS and Wipro. Gains in the latter two stocks were aided by reports that these companies are eying a large outsourcing deal with the leading American retailer, Target. The deal could possibly involve the acquisition of the Indian captive technology centre of Target with a bundled offshoring transaction worth US$ 300-400 m.
A deal like this could be revolutionary for the Indian IT sector that is eyeing retail as one of the next big opportunities for offshore outsourcing. As a matter of fact, few years ago, many foreign retailers started with their Indian captive operations as there were not many IT service providers who could understand their core operations better. This seems to be changing now, and for the better for the Indian IT sector!
No comments:
Post a Comment