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India Markets Weekahead: Continue pruning your portfolio

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(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.

Though continued weakness in crude oil has been fanning the move beyond 8,000, the fear of a U.S. Fed rate hike and the flood of fresh paper from the government stable kept the lid on the upside. Global markets were also not supportive with most ending in the red except some Asian markets and Japan, which gained due to a weaker yen. The Supreme Court decision on the illegal allocation of coal blocks was deferred, prolonging uncertainty for the sector.

Index of Industrial Production (IIP) data, released after market hours on Friday, turned out to be a dismal 0.5 percent, marking the third consecutive month of decline. Though a number of analysts believe this could be a blip and not a cause for alarm, figures remained positive primarily due to double-digit growth in electricity.

Markets Weekahead: ‚ÄéTime to book profits and not be greedy

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

The highlight of the past week was a stupendous 3 percent rally on Friday with the Nifty ending at a record high of 6858. Investors were in a sombre mood earlier in the week, when the market was threatening to break a crucial support level around 6650.

The sudden turn on Friday and the ferocity of the move took most participants by surprise. It was a combination of fresh buying as well as short covering which resulted in a near 200 point rally. It seemed everyone wanted to join the bandwagon due to the fear of missing a bigger rally.

India Market Weekahead – Inflation, FII inflows to be key

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

The bulls are back and their four-week winning streak saw the Nifty close at a 29-month high of 6107 on Friday, up about 2.75 percent for the week. Liquidity flows remain robust, fuelling the momentum despite political heat in New Delhi.

The Congress win in Karnataka boosted positive sentiment, followed by industrial output data that was marginally better than expectations. The overall earnings season has been favourable and along with the global rally provided the right environment for the markets to cross the psychological barrier of 6100 in the Nifty and 20000 on the Sensex. The only thing missing is euphoria on the street and broader participation by investors.

Why industrial growth should pick up?

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

Industrial growth had slowed down since September 2010 to nearly 3 pct with some improvement in March this year. There are reasons why performance had been uneven though there are also reasons why growth will pick up in future.

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