Wednesday 31 October 2012
Tuesday 30 October 2012
OUTLOOK
The Finance Minister got into action again and announced he would nearly
halve the deficit in just over four years. Expectations are that such
an announcement could increase the chances a rate cut today.The rupee weakened past the 54-level against the dollar ahead of RBI
meet. The RBI has indicated that it’s ready to support growth and ease
interest rates if “macro-risks from inflation and twin deficits recede
further”. In its ‘Macroeconomic and Monetary Developments Second Quarter
Review 2012-13,’ the RBI said, “Growth-inflation balance warrants
careful policy calibration as growth slows but inflation risks persist."
A CRR cut is widely expected. Will the RBI oblige on a rate cut, we
will know in a few hours.
Monday 29 October 2012
OUTLOOK
Back home the weekend saw a cabinet reshuffle in India with the Prime
Minister inducting 22 ministers - 7 of cabinet rank and 15 ministers of
state with two holding independent charge. UPA will hope to see some
more action with few fresh faces. Reliance could be in focus following
the change in the petroleum ministry with Veerappa Moily taking charge.
Hyderabad-based companies could see gains following better
representation this time from Andhra Pradesh in the reshuffle.
We are looking at a cautious start for the Indian indices. The market last week struggled for direction and closed below the 20 DMA. Global cues are mixed with Asian shares edging higher. US indices ended subdued.
We are looking at a cautious start for the Indian indices. The market last week struggled for direction and closed below the 20 DMA. Global cues are mixed with Asian shares edging higher. US indices ended subdued.
Friday 26 October 2012
OUTLOOK
We see the indices opening flat to negative with some gains coming over
the day. Yet, investors will adopt a guarded approach ahead of events
like the RBI meet next week. A couple of major results will be announced
today. Asian indices are moving in and out of positive zone as earnings of
companies like Yamaha have disappointed. US stocks gained modestly.
Corporate earnings have not improved sentiment but economic data has
been encouraging. In the US, first-time claims for unemployment benefits
fell to 369,000 which was better than expected.
Thursday 25 October 2012
MARKET OUTLOOK
The start is set to be a little muted as indices catch up with the movements across the globe. The movement of a day up, a day down has been on for a while now and indices will look at breaking out of the 5640-5740 sooner than later. US indices ended slightly lower. The Federal Reserve's latest policy statement has no indications of any major change to interest rates or the central bank's plan to stimulate the economy through large bond-buying programs.Stocks like Cairn will continue to remain in focus as investors speculate on the quantum of dividend the company may declare.
Tuesday 23 October 2012
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