Markets up after discounting slower growth forecast
Srujani Panda / 19 Oct 2011
The Indian markets started a day on a positive note and continued the upward momentum in the later sessions. By noon, the market is trading firm and we at DSIJ expect that it is going to be a positive day for the markets.
The US economic data and announcement of rescue funds form France and Germany has supported the market very firmly. Asian markets shown a mixed trend with Nikkei and Hang Seng trading in green and Shanghai Composite marginally down by 0.25%.
Meanwhile, European markets opened in the green despite Spain being downgraded by Moodys by 2 notches. Indian finance minister has indicated that growth of Indian Economy could be slower than expected amid high inflation, rising rates and global financial turbulence. Exports are expected to slow down due to the overall economic scenario.
All sectoral indices are trading in green. Realty and Bankex are still among the major gainers. Other indices except for FMCG have gained above 1% so far. FMCG which is up by 9 points or 0.24% is being pulled down by ITC, Nestle India and United breweries which are trading in red. BSE broad indices are also up by 0.84 to 1.44%.
Hero Motorcorp has extended morning gains to 5.13%. All Sensex stocks are trading in positive except for Hindustan Unilever. Coromandel International rose by 6.98% to Rs 328.85 after management announced issue of bonus redeemable debentures. Honeywell Automation dipped below 5.67% at Rs 2,412 after reporting 39% drop in its net profit to Rs 15.68 crore for the quarter ended September. Cronimet Alloys India surged by 16% to Rs 155 on reports that metals and energy company Glencore International is in talks to buy 24% stakes in the company. Dish TV India has announced its quarterly results, in which it has posted a net loss of Rs. 48.5 crore for the quarter ended September 30, 2011. The stock of the company which was trading flat has dropped by 1.35 percent as soon as the news came.
The market breadth, indicating the overall health of the market, is extremely positive. Out of total 2957 stocks 1990 stocks advanced while 855 stocks declined. A total 112 stocks remained unchanged.
Overall we at Dalal Street Investment Journal expect markets to end in green as it has already discounted slower growth forecast and Spain downgrade. European markets are also indicating the same and hence we expect a positive day today. We advice our readers to track shares of United Phosporous, which has shown surge in volumes and is due on its quarterly result by 21st October 2011.
The US economic data and announcement of rescue funds form France and Germany has supported the market very firmly. Asian markets shown a mixed trend with Nikkei and Hang Seng trading in green and Shanghai Composite marginally down by 0.25%.
| Benchmark Indices | ||
| Index | Rate | % Change |
| FTSE | 5,446.11 | 0.66 |
| DAX | 5,923.72 | 0.79 |
| CAC | 3,157.89 | 0.53 |
| Hang Seng | 18,309.22 | 1.29 |
| Nikkei | 8,772.54 | 0.35 |
| Shanghai | 2,377.51 | -0.25 |
| SENSEX | 16998.76 | 1.50 |
| NIFTY | 5114.85 | 1.54 |
Meanwhile, European markets opened in the green despite Spain being downgraded by Moodys by 2 notches. Indian finance minister has indicated that growth of Indian Economy could be slower than expected amid high inflation, rising rates and global financial turbulence. Exports are expected to slow down due to the overall economic scenario.
All sectoral indices are trading in green. Realty and Bankex are still among the major gainers. Other indices except for FMCG have gained above 1% so far. FMCG which is up by 9 points or 0.24% is being pulled down by ITC, Nestle India and United breweries which are trading in red. BSE broad indices are also up by 0.84 to 1.44%.
Hero Motorcorp has extended morning gains to 5.13%. All Sensex stocks are trading in positive except for Hindustan Unilever. Coromandel International rose by 6.98% to Rs 328.85 after management announced issue of bonus redeemable debentures. Honeywell Automation dipped below 5.67% at Rs 2,412 after reporting 39% drop in its net profit to Rs 15.68 crore for the quarter ended September. Cronimet Alloys India surged by 16% to Rs 155 on reports that metals and energy company Glencore International is in talks to buy 24% stakes in the company. Dish TV India has announced its quarterly results, in which it has posted a net loss of Rs. 48.5 crore for the quarter ended September 30, 2011. The stock of the company which was trading flat has dropped by 1.35 percent as soon as the news came.
The market breadth, indicating the overall health of the market, is extremely positive. Out of total 2957 stocks 1990 stocks advanced while 855 stocks declined. A total 112 stocks remained unchanged.
Overall we at Dalal Street Investment Journal expect markets to end in green as it has already discounted slower growth forecast and Spain downgrade. European markets are also indicating the same and hence we expect a positive day today. We advice our readers to track shares of United Phosporous, which has shown surge in volumes and is due on its quarterly result by 21st October 2011.
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