Expert Zone

Straight from the Specialists

India market weekahead: Consolidation seen, earnings in focus

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(The views expressed in this column are the author’s own and do not represent those of Reuters)

October has been touted as a difficult month for stocks, though for the Indian markets there didn’t seem to be anything stopping the repeat show of October 2011 until the flash crash on 5th.

Since then, the market has been hovering in the Nifty range of 5,650 to 5,740, closing the week about 1.23 percent lower at 5,676, breaking a five-week winning streak.

We lost some steam, but the tone is still optimistic. This could be the much-awaited correction after a near-600 point dream run.

When will India’s reforms show results?

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(The views expressed in this column are the author’s own and do not represent those of Reuters)

After a long silence the spell has finally been broken. The second phase of reforms in the country has begun with almost the same conviction as the first but under different conditions. The 1991 reforms were under compulsion but the present reforms are voluntary. This is because the last 20 years have been a test to prove to ourselves that reforms help and they have substantially helped to make the country an emerging market economy.

Temporary market correction an opportunity to buy

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(The views expressed in this column are the author’s own and do not represent those of Reuters)

Opposition party protests against the UPA coalition government’s economic reforms could not puncture market sentiment in the past four weeks. One domestic brokerage house dealer’s “fat finger” did it in just a few seconds.

Sharp fall in Nifty: Understanding flash crash, algo trading

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(The views expressed in this column are the author’s own and do not represent those of Reuters)

Global markets have witnessed flash crashes in the recent past, the most famous one being on May 6, 2010 when U.S. markets dropped 600 points in a matter of minutes, only to recover later. But the one which we witnessed Friday on the National Stock Exchange resulted in the market being shut for a while.

A gift for Mahatma Gandhi

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(Rajan Ghotgalkar is Managing Director of Principal Pnb Asset Management Company. The views expressed in this column are his own and do not represent those of either Principal Pnb or Reuters)

Having replaced the feudal princes by colonising India, the British Civil Service carried on with the master-subject relationship which, understandably, entitled them to huge discretionary powers.

Markets Weekahead: Watch out for Nifty levels of 5,900, mid-cap shares to shine

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(The views expressed in this column are the author’s own and do not represent those of Reuters)

The week was expected to be volatile with a possibility of a minor correction but turned out to be one of consolidation. The Nifty closed at 5,703, higher by 12 points, its fourth straight week of gains. Indian markets have been among the best performing ones with gains of 8.46 pct in September. FIIs continued to pour in with last week’s tally at $1.42 billion.

Weighing the Obama-Romney calculus

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(The views expressed in this column are the author’s own and do not represent those of Reuters)

Much is at stake in the United States presidential elections this year, perhaps more in terms of policy than in the past few election cycles. The presidency of Barack Obama has been fraught with battles in a deeply divided Congress, leading to paralyses on some major agenda such as government debt, and significant compromises on others such as healthcare reform.

A good start but we need more reforms

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(The views expressed in this column are the author’s own and do not represent those of Reuters)

It’s been a pleasant surprise over the last week or so as the Indian government appears to have transformed itself from allegedly corrupt politicians out to sell the country’s resources (read 2G and coal mines) into a group which means serious business.

How QE3 changes commodity prices

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(The views expressed in this column are the author’s own and do not represent those of Reuters)

On Sept. 13, the U.S. Fed announced the QE3 program whereby it purchases mortgage-backed securities at $40bn per month with no time limit. It also pushed out guidance on keeping a low funds rate to mid-2015 from late 2014.

That’s the spirit, Mr Prime Minister

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(Rajan Ghotgalkar is Managing Director of Principal Pnb Asset Management Company. The views expressed in this column are his own and do not represent those of either Principal Pnb or Reuters)

Manmohan Singh’s “if we have to go down, let’s go down fighting” comment is exactly the spirit which needs to be demonstrated by those in power. After all, desperate times call for desperate measures.

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