Expert Zone
Straight from the Specialists
India Market Weekahead: RBI policy holds the key
(The views expressed in this column are the author’s own and do not represent those of Reuters)
Markets extended a rally for the third consecutive week led by strong FII inflows. FIIs have pumped in $1.2 billion so far this year as risk sentiment stabilised after several European debt auctions saw lower borrowing rates and overwhelming demand. Improvement in U.S. economic data, rupee appreciation and December quarter earnings exceeding lower expectations helped the market rally nearly 8 pct in three weeks.
The initial set of corporate results surprised the street as HDFC Bank, Axis Bank, Wipro, TCS, HCL Technologies and Hero MotoCorp posted better-than-expected numbers.
However, Reliance Industries (RIL) disappointed with a net profit de-growth of 13.6 pct year-on-year on the back of lower refining and petrochem margins. Its gross refining margins declined sharply to $6.8 per barrel from $9 per barrel. The buyback of $2 billion at a maximum price up to 870 rupees/share for up to 120 million shares or 3.6 pct equity via open market is seen as a cover-up for the subdued results. RIL stock has already gained 8 pct during the week after the announcement of the buy-back program. We may see a knee-jerk reaction to the results when trading opens on Monday but the buy-back may provide a cushion at the lower end.
Start topping up portfolio on correction
(The views expressed in this column are the author’s own and do not represent those of Reuters)
Indian equities have posted a good show so far this year with gains of around 5 pct. Receding euro zone debt worries and a stronger-than-expected growth in industrial production in November have strengthened investors’ sentiment. Food inflation continued to show a negative trend which also aided sentiment.
Volatile but undecided markets, awaiting cues
(The views expressed in this column are the author’s own and do not represent those of Reuters)
Trading for the New Year began on a positive note after the government’s decision to allow foreign nationals to invest directly in the country’s listed companies and after data showed a sharp improvement in manufacturing activity in December.
India Market Weekahead: Testing times but patience to be rewarded
(The views expressed in this column are the author’s own and do not represent those of Reuters)
Key indices witnessed a deep cut this week with the Nifty falling below the psychologically important support level of 4700 for the first time since November 2009. Experts have begun predicting a crash and rightly so, as all the levers of the economy have gone for a toss with pessimistic news flows. So the moot question is whether the market has discounted all the negatives? If yes, then why are Indian markets underperforming global counterparts week after week?
India Market Weekahead: Economic data to provide cues
(The views expressed in this column are the author’s own and do not represent those of Reuters)
After a sharp bounceback last week, Indian markets were not able to hold on to the gains and corrected by 3.7 pct during the week. The overall tone remained bearish on domestic concerns revolving around the government’s inability to push through key reforms and uncertainty over the Euro debt crisis and over the outcome of the European Union (EU) summit.
India Market Weekahead: EU summit, pace of local reforms to drive markets
(The views expressed in this column are the author’s own and do not represent those of Reuters)
After falling to a new two-year low the previous week, the markets reversed a downtrend and benchmark indices logged their best weekly gain since July 2009.
India Market Weekahead: Investor confidence, patience to be tested
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The week that went by was quite a turbulent one which witnessed the Nifty plummet to a 2-year closing low on concerns of slowing growth, weak corporate earnings and a faltering rupee. Fears of a global economic slowdown continued to weigh on Indian stocks.
With increasing dollar demand in India as foreign investors withdrew from the country, the Indian rupee witnessed a sharp slide this week. At 52.76, the rupee plunged to record lows as fears of an unstable euro zone and a gloomy global economy persisted.
India Market Weekahead: Re-test of earlier lows expected
(The views expressed in this column are the author’s own and do not represent those of Reuters)
Initial optimism over the resignation of Italian Prime Minister Berlusconi faded quickly and there was further intensification of euro zone fear during the week. The Indian markets underperformed immensely vis-à-vis its global peers with a deep cut of 5 pct during the week. The sharp pangs of distressing high inflation, weaker rupee, disappointing corporate results and FII selling pushed the markets back to its earlier range of 4700 – 5200.
India markets weekahead: Moody’s rating, inflation to set the tone
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The week that went by was quite a turbulent one as domestic and international factors dampened market sentiments, resulting in a 2.1 pct decline in Nifty in what was a truncated trading week. We were saved from a possible savage cut on Thursday as it was a market holiday.
India markets weekahead: Bumpy road ahead, but time to top up your portfolio
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The near 8 percent October rally threatened to fizzle out as the Greece drama drove trade for virtually the whole of last week, keeping markets volatile. The initial exhilaration surrounding the euro zone bailout plan faded after the Greek prime minister called for a referendum.
