India Stocks Outlook: Up next wk as political worries seen ebbing
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K.Karthik Raja
Jul 4, 2008, 9:07:47 AM7/4/08
to Kences1
India Stocks Outlook: Up next wk as political worries seen ebbing
Friday, Jun 4
.
MUMBAI - Lack of cues from the U.S. stock market on Monday because
of a
holiday today, and clarity emerging on the domestic political scene
are
likely to lift the domestic share market next week, dealers said.
U.S. markets are closed today on account of Independence Day.
Hopes that crude oil prices may slip from their high of over $145
a
barrel because of the long weekend in the U.S. may also lend support,
dealers
said.
Today, Bombay Stock Exchange's 30-share Sensex ended at 13454.00,
up
359.89 points or 2.8% from Thursday.
National Stock Exchange's 50-Share Nifty closed at 4016.00, up
90.25 points
or 2.3%.
India VIX or volatility index declined 1.6%.
Dealers see resistance for Nifty around 4100-4150.
.
POLITICAL UNCERTAINTY ENDS?
The sentiment is positive, as Samajwadi Party has indicated it
would
support the Congress-led United Progressive Alliance government on the
India-U.S. nuclear deal, dealers said.
SP leader Amar Singh, however, told reporters today that his party
has
not made any commitment so far on support to the government.
SP's support is crucial for the government's survival, as a
withdrawal by
Left parties on differences over the nuclear deal now looks certain.
The Left parties today set Monday's deadline for a response from
the
UPA on their queries regarding the nuke deal.
CPI(M) General Secretary Prakash Karat also said Left parties have
decided to launch a nationwide campaign against the nuclear deal and
the
failure of the government to contain inflation.
"Market's reaction to Left withdrawing support would depend on an
official response from SP on whether they will support the government
or
not," said the head of institutional dealing at a domestic brokerage.
"In case SP commits support, the impact will be minimal. If there
is no
official statement and uncertainty prevails, the government will
collapse and
Sensex can fall a good 500-600 points. That would be a field day for
buying,"
he said.
Dealers see support for Nifty around 3850 level.
"If Nifty breaks 3800, then we could see a fresh round of
selling," said
an institutional dealer.
.
STOCKS
Dealers and analysts said stock valuations are attractive at the
current
levels, and recommend cherry-picking in large-cap shares.
"There is also scope for some more short covering, particularly in
ADAG
(Anil Dhirubhai Ambani Group) stocks," a dealer said.
Mutual funds have also turned buyers recently. Most dealers said
they are
unlikely to create short positions and preferred to be buyers at
current
levels.
"Downside is limited when market (Sensex) is nearing 11500-12000,
and as
a brokerage, we have been maintaining a view that these are attractive
levels
to buy stocks with a one-year view," said Amitabh Chakraborty,
president -
equity, Religare Securities.
Dealers said shares of banks, particularly public sector banks,
present a
good opportunity for value buying.
With Apr-Jun earnings announcements to trickle in next week, one
can expect
stock-specific movement.
Infosys Technologies will be the first Nifty major to report its
earnings
for the June quarter on Friday.
Inclusion of software development under the Industrial Parks
Scheme of
2008 is likely to provide relief to the IT sector, as it may qualify
for tax
sops beyond Mar 2010 when the earlier tax benefits are scheduled to
expire,
analysts said.
"We expect earnings of IT and pharmaceutical companies to be
better due
to the depreciation of the rupee," Chakraborty said.
Dealers recommend avoiding mid-cap stocks as they are a risky bet
in a
volatile market, which has high inflation and spiralling crude oil
prices to
contend with.
Inflation for the week to Jun 21 climbed to 11.63%, against 11.42%
a week
ago.
More monetary tightening measures from Reserve Bank of India are
on the
cards, as the finance ministry expects the inflation rate to remain at
13.00%
in the near-term, keeping gains in interest rate-sensitive stocks
capped,
dealers said. End
.
Friday, Jun 4
.
MUMBAI - Lack of cues from the U.S. stock market on Monday because
of a
holiday today, and clarity emerging on the domestic political scene
are
likely to lift the domestic share market next week, dealers said.
U.S. markets are closed today on account of Independence Day.
Hopes that crude oil prices may slip from their high of over $145
a
barrel because of the long weekend in the U.S. may also lend support,
dealers
said.
Today, Bombay Stock Exchange's 30-share Sensex ended at 13454.00,
up
359.89 points or 2.8% from Thursday.
National Stock Exchange's 50-Share Nifty closed at 4016.00, up
90.25 points
or 2.3%.
India VIX or volatility index declined 1.6%.
Dealers see resistance for Nifty around 4100-4150.
.
POLITICAL UNCERTAINTY ENDS?
The sentiment is positive, as Samajwadi Party has indicated it
would
support the Congress-led United Progressive Alliance government on the
India-U.S. nuclear deal, dealers said.
SP leader Amar Singh, however, told reporters today that his party
has
not made any commitment so far on support to the government.
SP's support is crucial for the government's survival, as a
withdrawal by
Left parties on differences over the nuclear deal now looks certain.
The Left parties today set Monday's deadline for a response from
the
UPA on their queries regarding the nuke deal.
CPI(M) General Secretary Prakash Karat also said Left parties have
decided to launch a nationwide campaign against the nuclear deal and
the
failure of the government to contain inflation.
"Market's reaction to Left withdrawing support would depend on an
official response from SP on whether they will support the government
or
not," said the head of institutional dealing at a domestic brokerage.
"In case SP commits support, the impact will be minimal. If there
is no
official statement and uncertainty prevails, the government will
collapse and
Sensex can fall a good 500-600 points. That would be a field day for
buying,"
he said.
Dealers see support for Nifty around 3850 level.
"If Nifty breaks 3800, then we could see a fresh round of
selling," said
an institutional dealer.
.
STOCKS
Dealers and analysts said stock valuations are attractive at the
current
levels, and recommend cherry-picking in large-cap shares.
"There is also scope for some more short covering, particularly in
ADAG
(Anil Dhirubhai Ambani Group) stocks," a dealer said.
Mutual funds have also turned buyers recently. Most dealers said
they are
unlikely to create short positions and preferred to be buyers at
current
levels.
"Downside is limited when market (Sensex) is nearing 11500-12000,
and as
a brokerage, we have been maintaining a view that these are attractive
levels
to buy stocks with a one-year view," said Amitabh Chakraborty,
president -
equity, Religare Securities.
Dealers said shares of banks, particularly public sector banks,
present a
good opportunity for value buying.
With Apr-Jun earnings announcements to trickle in next week, one
can expect
stock-specific movement.
Infosys Technologies will be the first Nifty major to report its
earnings
for the June quarter on Friday.
Inclusion of software development under the Industrial Parks
Scheme of
2008 is likely to provide relief to the IT sector, as it may qualify
for tax
sops beyond Mar 2010 when the earlier tax benefits are scheduled to
expire,
analysts said.
"We expect earnings of IT and pharmaceutical companies to be
better due
to the depreciation of the rupee," Chakraborty said.
Dealers recommend avoiding mid-cap stocks as they are a risky bet
in a
volatile market, which has high inflation and spiralling crude oil
prices to
contend with.
Inflation for the week to Jun 21 climbed to 11.63%, against 11.42%
a week
ago.
More monetary tightening measures from Reserve Bank of India are
on the
cards, as the finance ministry expects the inflation rate to remain at
13.00%
in the near-term, keeping gains in interest rate-sensitive stocks
capped,
dealers said. End
.
B. Karthick
Jul 5, 2008, 2:09:28 AM7/5/08
to Kences1
India Stocks Outlook: Up next wk as political worries seen ebbing
Saturday, Jul 5.
Lack of cues from the U.S. stock market on Monday because of a
scene are likely to lift the domestic share market next week.
U.S. markets are closed yesterday on account of Independence Day.
Hopes that crude oil prices may slip from their high of over $145
a
barrel because of the long weekend in the U.S. may also lend support.
a
Sensex ended at 13454.00, up 359.89 points or 2.8% from Thursday.
Nifty closed at 4016.00, up 90.25 points or 2.3%.
India VIX or volatility index declined 1.6%.
India VIX or volatility index declined 1.6%.
POLITICAL UNCERTAINTY ENDS?
The sentiment is positive, as Samajwadi Party has indicated it
would
support the Congress-led United Progressive Alliance government on the
India-U.S. nuclear deal.
The sentiment is positive, as Samajwadi Party has indicated it
would
support the Congress-led United Progressive Alliance government on the
SP leader Amar Singh, however, told reporters yesterday that his
party has not made any commitment so far on support to the government.
SP's support is crucial for the government's survival, as a
withdrawal by Left parties on differences over the nuclear deal now
looks certain.
The Left parties set Monday's deadline for a response from the
SP's support is crucial for the government's survival, as a
withdrawal by Left parties on differences over the nuclear deal now
looks certain.
UPA on their queries regarding the nuke deal.
CPI(M) General Secretary Prakash Karat also said Left parties have
decided to launch a nationwide campaign against the nuclear deal and
the failure of the government to contain inflation.
Market's reaction to Left withdrawing support would depend on an
official response from SP on whether they will support the government
or not.
CPI(M) General Secretary Prakash Karat also said Left parties have
decided to launch a nationwide campaign against the nuclear deal and
the failure of the government to contain inflation.
Market's reaction to Left withdrawing support would depend on an
official response from SP on whether they will support the government
In case SP commits support, the impact will be minimal. If there
is no official statement and uncertainty prevails, the government will
collapse and Sensex can fall a good 500-600 points. That would be a
field day for buying.
is no official statement and uncertainty prevails, the government will
collapse and Sensex can fall a good 500-600 points. That would be a
If Nifty breaks 3800, then we could see a fresh round of selling.
STOCKS
We feel stock valuations are attractive at the current levels, and
recommend cherry-picking in large-cap shares.
There is also scope for some more short covering, particularly in
ADAG (Anil Dhirubhai Ambani Group) stocks.
There is also scope for some more short covering, particularly in
Mutual funds have also turned buyers recently. They are unlikely
to create short positions and preferred to be buyers at current
levels.
We feel shares of banks, particularly public sector banks, present
levels.
a
good opportunity for value buying.
With Apr-Jun earnings announcements to trickle in next week, one
can expect stock-specific movement.
Infosys Technologies will be the first Nifty major to report its
earnings for the June quarter on Friday.
Inclusion of software development under the Industrial Parks
Scheme of 2008 is likely to provide relief to the IT sector, as it may
qualify for tax sops beyond Mar 2010 when the earlier tax benefits are
scheduled to expire.
good opportunity for value buying.
With Apr-Jun earnings announcements to trickle in next week, one
can expect stock-specific movement.
Infosys Technologies will be the first Nifty major to report its
earnings for the June quarter on Friday.
Inclusion of software development under the Industrial Parks
Scheme of 2008 is likely to provide relief to the IT sector, as it may
qualify for tax sops beyond Mar 2010 when the earlier tax benefits are
We expect earnings of IT and pharmaceutical companies to be better
due to the depreciation of the rupee.
We feel avoiding mid-cap stocks as they are a risky bet in a
volatile market, which has high inflation and spiralling crude oil
prices to
contend with.
Inflation for the week to Jun 21 climbed to 11.63%, against 11.42%
a week ago.
More monetary tightening measures from Reserve Bank of India are
on the cards, as the finance ministry expects the inflation rate to
remain at 13.00% in the near-term, keeping gains in interest rate-
sensitive stocks capped.
prices to
contend with.
Inflation for the week to Jun 21 climbed to 11.63%, against 11.42%
a week ago.
More monetary tightening measures from Reserve Bank of India are
on the cards, as the finance ministry expects the inflation rate to
remain at 13.00% in the near-term, keeping gains in interest rate-
End.
B.Karthick,
Research Analyst.
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