Money on the markets

A maturing market amid the mayhem

Goldman, Moody’s bring some cheer; can the govt build on it?

Photo

A battered government has some good news to cheer this week. First, rating agency Moody’s kept the country’s rating outlook at stable, providing a breather after two other global firms downgraded it to negative.

Goldman Sachs on Thursday upgraded Indian equities to ‘overweight’ from ‘market-weight’. The Wall Street investment bank has cited a recovery in growth and inflation moderation going ahead as reasons for its upgrade. It has set an end-2013 end target for the Nifty at 6,600 points, a 14 percent upside from current levels.

And there’s some more good news. Goldman said that economic growth is likely to accelerate to 6.5 percent in 2013 backed by favourable external sector demand outlook and a pick-up in domestic reforms.

All this is boosting sentiment on the street. The Sensex crossed 19,000 in trade on Thursday.

from Expert Zone:

Will Indian stocks end 2012 on a happier note?

Photo

(Rajiv Deep Bajaj is the Vice Chairman and Managing Director of Bajaj Capital Ltd. The views expressed in this column are his own and do not represent those of Reuters)

The rally in the Indian stock markets, fuelled by the so-called reform announcements, seems to have fizzled out. Frontline indexes have retraced more than 60 percent of the gains made since Sep. 13, 2012, the day the reform measures were made public.

No solution in sight for bipolar Indian stocks

Photo

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

As the end of 2012 approaches, investors will likely remember this as a bipolar year for Indian markets.

from India Insight:

Wary of stocks, Indians cling to safe havens

Photo

Sometimes people suspect that the grass is greener in the next field ... but they're not always right.

Consider this. India's gross domestic product has grown about 7 percent on an average per year for the past nine years. Its industrial growth has been steadily rising since then. Buoyed by economic growth, the country’s capital markets also offered itself as an attractive and inflation beating investment option.

from Expert Zone:

Hopes fade as investors await concrete action

Photo

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

It was an action-packed week for the markets but not for the reasons we had anticipated. Manmohan Singh’s government, which was expected to announce a string of policy action steps starting with a diesel price hike, failed to make any announcements which would have cheered markets.

from Expert Zone:

Get set for an action-packed week

Photo

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

Markets continued to display weakness during the week except for a spirited, though limited, rally on July 18 after the UPA convinced belligerent ally Mamata Banerjee to fall in line for the presidential elections. The Nifty lost 0.4 pct to close the week at 5205 on political worries after the NCP, another government ally, expressed dissatisfaction with its functioning.

from Expert Zone:

India Market Weekahead – Policy action, rupee to decide market direction

Photo

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

The week gone by displayed indecisiveness by participants as the markets garnered small gains after moving in a tight range. The Nifty managed to hold on to the 4900 level mark as investors cheered the government’s announcement to raise petrol prices in an attempt to revive the policy inaction tag.

from India Insight:

As the economy and markets struggle, India needs tough actions

Photo

Slowing growth, a falling rupee, sliding stock markets, a rising current account deficit, drying foreign inflows and policy paralysis at the centre. Things certainly don’t look rosy for India.

With the rupee down 22 percent in the last 10 months and a 6 percent drop in stock markets so far in May (as of Friday’s close), is it time for the government to seriously rethink its strategy ahead of the 2014 general elections?

from Expert Zone:

India Market Weekahead – Volatile market within a narrow range

Photo

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

A sharper-than-expected cut of 50 basis points in the repo rate boosted the benchmark indices early during the week. However, as expected, the Nifty could not gain higher than 5350 as apprehensions about the limited scope of further rate cuts suppressed sentiment.

from Expert Zone:

Brace for volatility, but utilise opportunity

Photo

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

After a 21 percent run so far this year due to unabated liquidity flow, markets paused for two weeks in a row with a cut of close to 5 percent. Data showing a slowdown in GDP growth in Q3 December spooked investors while macroeconomic worries arising from high oil prices also weighed on sentiments.

  •