Pre Market Report - 18.05.2009
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B. Karthick
May 18, 2009, 12:15:05 AM5/18/09
to Kences1
Sensex to fly high on hopes of economic reforms
Stocks in India are expected to fly high on opening bell as money on
the sidelines is likely to flow in to the market on hopes that the
Singh led UPA government is likely to bolster the slowing economy with
financial reforms. Expect the Sensex to gain more than 400 points or 4
percent for the day.
Stocks in Asia opened mildly lower on negative cues from the US
markets, Australia's ASX 200 is down by 0.3 percent, South Korea's
Kospi is lower by 0.4 percent and Japan's Nikkei is down nearly 2.5
percent in the first hour of trade.
The convincing victory for UPA in the just-concluded general election
is likely to boost sentiment on Dalal Street.This will give a chance
for the Indian market to catch up with its peer China. The Bombay
Stock Exchange Sensitive Index climbed 26 percent this year against
the Shanghai index which has gained 45 percent for the year.
We might see heavy buying in the PSU stocks on speculation that the
newly formed Singh government is likely to implement the disinvestment
program in the next few months. There might be 40 to 50 percent move
in these stocks and we have given our picks in these sectors to our
subscribers.
Telecom and Insurance sectors are going to be the major beneficiaries
if the government move ahead with measures to increase FDI Cap from 26
to 49 percent. Banking and Infra structure stocks are likely to be
among the gainers in today's trade.Analysts in the market expect the
Sensex to touch 14,000 level, barring any major global melt down.
We advise investors not to buy in the first hour of the market as we
are likely to see a huge gap up pending of more than 700 points. One
could look at buying stocks in the afternoon session, as things are
likely to cool off after initial euphoria. It is a good idea trim your
holdings in speculative counters and build positions in PSU and
related entities going forward.Overall a great day for the stocks, but
we expect some cool off after an explosive opening in the morning.
B.Karthick
Research Analyst.
Stocks in India are expected to fly high on opening bell as money on
the sidelines is likely to flow in to the market on hopes that the
Singh led UPA government is likely to bolster the slowing economy with
financial reforms. Expect the Sensex to gain more than 400 points or 4
percent for the day.
Stocks in Asia opened mildly lower on negative cues from the US
markets, Australia's ASX 200 is down by 0.3 percent, South Korea's
Kospi is lower by 0.4 percent and Japan's Nikkei is down nearly 2.5
percent in the first hour of trade.
The convincing victory for UPA in the just-concluded general election
is likely to boost sentiment on Dalal Street.This will give a chance
for the Indian market to catch up with its peer China. The Bombay
Stock Exchange Sensitive Index climbed 26 percent this year against
the Shanghai index which has gained 45 percent for the year.
We might see heavy buying in the PSU stocks on speculation that the
newly formed Singh government is likely to implement the disinvestment
program in the next few months. There might be 40 to 50 percent move
in these stocks and we have given our picks in these sectors to our
subscribers.
Telecom and Insurance sectors are going to be the major beneficiaries
if the government move ahead with measures to increase FDI Cap from 26
to 49 percent. Banking and Infra structure stocks are likely to be
among the gainers in today's trade.Analysts in the market expect the
Sensex to touch 14,000 level, barring any major global melt down.
We advise investors not to buy in the first hour of the market as we
are likely to see a huge gap up pending of more than 700 points. One
could look at buying stocks in the afternoon session, as things are
likely to cool off after initial euphoria. It is a good idea trim your
holdings in speculative counters and build positions in PSU and
related entities going forward.Overall a great day for the stocks, but
we expect some cool off after an explosive opening in the morning.
B.Karthick
Research Analyst.
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