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from Expert Zone:

India Markets Weekahead: Await a sharper correction to nibble in

(Any opinions expressed here are those of the author and not of Thomson Reuters)

The truncated week which opened after a five-day vacation was in a sombre mood except on Thursday, when markets bounced back due to a dovish Fed commentary. Friday again saw a correction, with the Nifty closing the week at 7860, down 1.07 percent.

People walk past the Bombay Stock Exchange (BSE) building in Mumbai May 13, 2014. REUTERS/Danish Siddiqui/FilesThe prospect of world economic slowdown perturbed international markets, and the Dow saw its worst week since May 2012, which in turn affected Indian markets. FIIs continued to pull out, increasingly worrying traders who are already baffled by the volatility.

The results season started off on a positive note with Infosys declaring better-than-expected profits and a bonus of 1:1. Although the stock rose 7 percent, it wasn’t enough to support sentiment in the rest of the market including the IT pack.

The automobile sales data for September continued to show an uptick while the HSBC PMI data for September was mixed, with services rising to 51.6 but manufacturing declining to 51.

from Expert Zone:

India Markets Weekahead: Continue pruning your portfolio

(Any opinions expressed here are those of the author and not necessarily those of Thomson Reuters)

Markets began the week on an optimistic note with the Nifty touching a new high of 8,178 but fatigue was noticeable in frontline stocks as action shifted to the mid- and small-caps.

from Expert Zone:

India Markets Weekahead: Time to prune positions in an extended honeymoon

(Any opinions expressed here are those of the author and not of Thomson Reuters)

The Nifty closed at a new closing high of 7,954 amid volatility in an eventful week that started with the Supreme Court ruling that the allocation of more than 200 coal blocks over the past two decades was illegal.

With nearly 3 trillion rupees at stake, this had a direct effect on the metals and power sector. It also affected banking, which has exposure to the two sectors.

from India Insight:

Markets this month: Tata Motors, M&M top Sensex gainers

By Ankush Arora and Sankalp Phartiyal

The BSE Sensex jumped 2.9 percent in August, the seventh consecutive monthly gain for the benchmark index in 2014. The broader Nifty closed 3 percent higher, its fourth straight month of gains.

A man looks at a screen across the road displaying the election results on the facade of the BSE building in MumbaiThe Indian stock market hit multiple record highs in August, helped by relentless foreign buying, easing of geopolitical tensions and continued optimism about the domestic economy’s revival.

from Expert Zone:

How high will the Sensex go?

(Any opinions expressed here are those of the author and not of Thomson Reuters)

A bronze bull sculpture is seen as an employee walks out of the Bombay Stock Exchange building in MumbaiSince April, the stock market has been in a frenzy after a long period of utter gloom. In quick succession, the Sensex jumped month after month to cross 26,000 on July 7. This was not mere euphoria created by the election of the Narendra Modi government, with a single-party majority in the Lok Sabha after a long time.

from India Insight:

Stock market glitches in India over the past few years

India's stock market, like its peers across the world, is no stranger to sudden trading halts due to technical glitches. On Thursday, India’s second-biggest exchange operator BSE halted trading across all its segments due to a network outage. Trading on the NSE bourse was not affected.

The three-hour outage was the longest in recent memory and follows three earlier outages in a year that has seen stocks scale fresh peaks on expectations of economic revival from a new government.

from Expert Zone:

India Markets Weekahead: Wait for post-budget opportunities

(Any opinions expressed here are those of the author and not of Thomson Reuters)

Markets were fairly volatile last week, reacting to tough measures taken by the Narendra Modi government to get India’s economy back on track amid worries over monsoon rains and the situation in Iraq.
cfcd208495d565ef66e7dff9f98764da.jpgLong-term investors hailed the hike in railway freight and passenger fares as a step in the right direction to bring down indirect subsidies. However, the government rolled back the hikes on suburban fares to a large extent due to political considerations.

Monsoon rains have started on a weak note but if the rains pick up in July and the El Nino effect is tempered, it would have a direct impact on inflation and interest rates.

from India Insight:

Markets this week: ITC, Infosys top Sensex losers

By Sankalp Phartiyal and Ankush Arora

Brokers trade on their computer terminals at a stock brokerage firm in Mumbai May 13, 2014. REUTERS/Danish Siddiqui/FilesThe benchmark BSE Sensex fell in three of five sessions this week, as higher crude prices hurt sentiment and the cabinet’s decision to delay a hike in gas prices disappointed investors. Caution also prevailed ahead of the June derivatives’ expiry on Thursday and fears of more violence in Iraq prompted investors to pare positions.

A Reuters poll on Thursday forecast the 30-share Sensex hitting 27,750 points by the end of December, following a brief correction after the budget.

from India Insight:

Markets this week: Mahindra and Mahindra, RIL top Sensex losers

By Ankush Arora and Sankalp Phartiyal

The BSE Sensex and Nifty, India’s main stock indexes, both fell 0.5 percent this week as worries over escalating Iraq tensions, a weak domestic monsoon and profit-taking weighed on sentiment.

On Friday, global oil prices inched towards a nine-month high on increased risks of supply disruption from Iraq. Investors fear spiraling crude prices and a weak monsoon could add to inflation woes and hurt India’s current account deficit.

from Expert Zone:

India Markets Weekahead: Pre-budget rally may be muted

A man looks at a screen across the road displaying the election results on the facade of the Bombay Stock Exchange (BSE) building in Mumbai May 16, 2014. REUTERS/Danish Siddiqui/Files(Any opinions expressed here are those of the author and not of Thomson Reuters)

The Nifty touched a new high of 7,700 before cracking on Friday to slip about 0.5 percent for the week. This was primarily triggered by the unrest in Iraq and the subsequent rise in crude prices.

The markets were also overbought aided by a relentless rally since May 9‎, with the CNX Nifty climbing about 16 percent, S&P BSE Midcap Index rising 26 percent and the S&P BSE Small cap index jumping 35 percent. The last one-month saw 115 multi-baggers with 92 percent of traded stocks gaining during the period. The probability of picking a loser was minimal. It seemed making money had never been so easy.

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