Expert Zone
Straight from the Specialists
Indian stocks: Paradise for value investors
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The BSE Sensex romance with the 16,000 level seems to have been rekindled, with the Sensex closing below it on August 26, after a gap of more than 18 months during which it touched a high of 21,109 (missing the all-time high of 21,207 by a whisker).
As is the case, when a key sentimental support level is broken, most experts on business TV channels (a strong contrarian indicator) started giving short calls on the market the moment 16,000 was broken. Why is the level so important? What does it mean for the near-term outlook for markets? What should the investors do now? These are some of the questions that must be roiling the mind of every equity investor in India.
For starters, the Sensex closing at 15,848 on Friday is the lowest weekly close after nearly two years. This means investors who had invested in index funds made only 1.66 pct p.a. on an average in the last two years (as on Aug 26). Those in diversified equity funds fared somewhat better getting 5.4 pct p.a. in large cap funds, 9.9 pct p.a. in mid-cap funds and 9.2 pct p.a. in flexi cap funds.
Next week crucial as markets at tipping point
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The Nifty finally gave in to selling pressure and fell below 4,800 in spite of a fragile attempt to hold on to those levels during the week.
With markets falling, it’s a good time to invest
(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)
The Sensex tested the 16,000 mark last week after 15 months.
I believe the following three quotes which made headlines on different days, tell us a lot when we put them together.
Political implications of Lokpal bill to weigh on markets
(The views expressed in this column are the author’s own and do not represent those of Reuters)
Indian stock markets continued to languish with benchmark indices down by 4 pct for the week and 13 pct for the month. Global stock markets crashed on fears of a recession in the U.S. combined with debt troubles in Europe.
India markets weekahead: High inflation, fear of rate hikes to make markets jittery
(The views expressed in this column are the author’s own and do not represent those of Reuters)
Markets continued to go on a losing spree with benchmark indices in India falling further by 2.6 pct. As if the axing of the U.S. rating was not enough, talks of a France credit rating downgrade lingered, chopping around 4 pct from global indices in a single day during the week.
India Markets Weekahead: Tough week seen after U.S. rating downgrade
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The week that started on a positive note after the U.S. agreed to raise the debt ceiling had to soon face the heat of global market turmoil. Fears of double-dip recession and worsening European sovereign debt woes dragged Indian equities lower to a 14-month low and a cut of 5 percent for the week.
India markets weekahead: U.S. debt ceiling deadline key
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The RBI surprised the street with a larger than expected 50 basis point rate hike in repo and reverse repo rates. The sideways and undecided trend was finally busted and the Nifty broke the crucial support of 5500 during the week as worries of rising interest cost hurt corporate profits.
Markets to hunt for direction
(The views expressed in this column are the author’s own and do not represent those of Reuters)
Markets last week saw profit booking after a spirited run-up. The cabinet reshuffle was a damp squib and the Mumbai triple blasts did not have any impact on the markets. Lower IIP and higher inflation continue to dampen sentiments. International cues like S&P’s likely downgrade of U.S. sovereign rating and EU stress tests on banks added to the pressure.
Rally tough to sustain, markets seen rangebound
(The views expressed in this column are the author’s own and do not represent those of Reuters)
Frenzied buying by FIIs and supportive global market cues saw the Nifty surpassing the psychological barrier of 5650-5700 but it encountered profit booking, losing some shine on Friday.
FII friends are back; hope it’s not just a rave party
The markets have extended previous week’s gains with Nifty surpassing an important level of 5500 and has accelerated further, mainly led by strong FII inflows and short covering.
Global indices rallied after the Greece parliament approved harsh austerity measures, which could pave the way for the debt-laden European nation secure emergency international financial aid and avoid a debt default.
