Expert Zone
Straight from the Specialists
India Markets Weekahead: Crucial levels may hold, don’t rush in yet
(The views expressed in this column are the author’s own and do not represent those of Reuters)
After seven weeks of positive close, markets finally showed first signs of fatigue and the Nifty fell by 2 pct over the last week. High crude oil prices dented investor sentiments as Brent touched $125 a barrel, the highest since last April, on fears of worsening tensions between Iran and the West.
Buying continued by foreign institutional investors (FIIs) throughout the week and it was in fact intense selling by domestic institutional investors that dragged the markets down.
MCX, the first public issue this year, turned out to be one of the best received offers of recent times with the issue being over subscribed by more than 54 times. This offer was seen as a key test of investor appetite for primary market after weak markets forced many companies to shelve stock offerings last year. This should call for an attention from the government so that it can push through some share divestments it was looking for but at decent valuations unlike NHPCs, PTC Financial and Satluj.
Market reform in China: Should we believe it?
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The first step in solving a problem is admitting it. For years, the Chinese government and their defenders overseas insisted first that China was still reforming, then that state-led economic development was superior to market-led development. Evidence to the contrary came as news to many.
Is 2012 the tipping point for China steel?
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The 2011 outcomes in China’s steel and related industries have ratcheted up the risks faced in China’s and the world’s steel and steel-making raw materials industries in 2012. Q411 steel production in China was particularly weak, down 12 pct from the levels enjoyed in the first 3 quarters of 2011.
Cost of a rate cut delay in India
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The RBI took the first step to ease monetary policy by reducing CRR by 50 basis points on Jan. 24. However, it postponed an interest rate cut, in spite of the advice by the special committee, only to confirm its reputation of being cautious. But excessive caution can also cost the country a pretty penny.
Bangladesh reinventing itself
(The views expressed in this column are the author’s own and do not represent those of Reuters)
When Bangladesh’s neighbours woke up to the news of another aborted coup last month, the fragility of its democracy was vividly evident. In 1971, erstwhile East Pakistan had emerged as an independent, secular, democratic nation — Bangladesh. The transition had cost between 300,000 to 5 million Bangladeshi lives, by various estimates. Bangladeshi radicals had collaborated with the Pakistani army to enact a genocide that barely found adequate coverage in the West’s humanitarian reporting.
India Market Weekahead: Need for caution as correction may be steep
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The Nifty extended its rally for the seventh consecutive week to touch 5600, returning 3 pct for the week and making it one of the best market rallies in recent times. The bourse continued to show strength on signs that euro zone officials would approve a long-awaited bailout for Greece next week to avoid any disorderly default.
‘Sense of disbelief’ in markets to extend current rally
(The views expressed in this column are the author’s own and do not represent those of Reuters)
As they say, it is always darkest before the dawn. Equity markets seem to be the finest proponents of this axiom. They have a habit of surprising investors. What we have seen so far in 2012 sums it up pretty well.
India Market Weekahead: Too good to last much longer
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The market has continued its upward move for the sixth consecutive week, gaining over 15 pct in 2012 and 20 pct over its December bottom without any worthwhile correction. The excellent market rally during the past few weeks is helped by global liquidity and strong FII inflows. However, mild profit booking was seen as the Nifty approached the all important resistance zone of 5400-5450.
Health insurance for people with HIV
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The insurance regulator recently floated a proposal which mandates all health insurance providers to put an underwriting policy in place for covering people with HIV or those working closely with HIV+ persons, such as doctors and nurses.
Sensex on the bounce
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The year 2012 has begun well for the stock market. In just six weeks, the Sensex was up 13 percent which made up more than a half of the fall in the previous 52 weeks. Will this trend survive the rest of the year?
