July « 2012 « Intraday Picks | Which/What Shares to Buy/Sell

31Jul/120

VantageTrade Eagle Eye: Markets flat, bank stocks down as RBI keeps the rates unchanged

The BSE Sensex posted excellent performance yesterday, extending Friday's gains to 500 points in two sessions thanks to buying in most beaten down stocks. Up move in global markets ahead of ECB and FOMC meet helped the rally also. The 30-share BSE benchmark rallied 304.49 points or 1.81% to close at 17,143.68 with support from 27 stocks. The 50-share NSE Nifty closed tad below the 5200 level at 5199.80, a gain of 99.95 points or 1.96% over previous close.

Infrastructure stocks saw huge buying interest today; engineering and construction major Larsen & Toubro and power equipment manufacturer BHEL were up 3.6%-4%.

US stocks finished mostly flat after registering two days of gains as investors paused ahead of the central bank meetings. The Dow Jones industrial average dipped 2.65 points, or 0.02 percent, to 13,073.01 at the close. The Standard & Poor's 500 Index edged down just 0.67 of a point, or 0.05 percent, to 1,385.30. The Nasdaq Composite Index fell 12.25 points, or 0.41 percent, to end at 2,945.84.

Asian shares slowed down today as investors turned cautious ahead of monetary policy meetings by the European Central Bank and the U.S. Federal Reserve. The Fed starts a two-day interest rate policy meeting today. Japan's Nikkei 225 index was trading 0.2 per cent lower at 8,621.75 and Hong Kong 's Hang Seng index was trading higher at 19,623.12, up 0.2 per cent. South Korea's Kospi index was trading 0.4 per cent higher at 1,851.45. China's Shanghai index was trading 0.2 per cent lower at 2,105.12.

The BSE Sensex and NSE Nifty opened with marginal gains on Tuesday following positive Asian cues.The BSE benchmark rose 37 points to 17,180.92 and the NSE benchmark gained 7 points at 5,207.05.

Indian investors await the Reserve Bank of India’s quarterly policy review, scheduled for today. Majority of experts don't expect change in policy rates and cash reserve ratio as the inflation is still above the RBI's comfort level of 7%. However, very few experts feel the RBI may cut repo rate by 25 basis points.

12:00 The BSE Sensex and NSE Nifty remained flat as the Reserve Bank of India kept policy rates and cash reserve ratio unchanged in the first quarter monetary policy review. The central bank cut statutory liquidity ratio to 23% from 24% w.e.f. August 11.

The BSE benchmark declined 28 points to 17,115.83 and the NSE benchmark went down 8.55 points to 5,191.25.

Country's largest lenders State Bank of India and ICICI Bank were down 1.3% and 0.44%, respectively. Private sector lender HDFC Bank slipped 0.75%.

Other Economic and Political News:

PM sets up panel to review taxation of development centres, IT
Farm exports jump by 88% to Rs.82,000 crore in FY12
World Bank says rising food prices a concern, ready to help
Steel makers double pellets imports in May
Employees safety yet to be assured, lockout to continue: Maruti
CIL Board to meet tomorrow to discuss fuel supply pacts
iGATE targets Rs.5,000cr revenue from iTOPS biz by 2017

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30Jul/120

VantageTrade Eagle Eye: Nifty and Sensex continue gains, ICICI lead

Indian markets pared half of its gains in second half of the trading session. The Markets ended up around 1.25% today. Yesterday’s strong statement by ECB President Mario Draghi regarding sustenance of EU, provided impetus to the global equity markets. The markets touched day’s high point in noon trade but pared its gains as the poor asset quality performance by PSU banks in Q1FY13 dampened investor’s sentiments. Selling pressure was observed in all PSU Banks stocks today. ICICI bank has reported 36.26% Y-o-Y increase in its Q1FY13 NPAT.

The Nifty ended up 56.85 point on Friday, to close at 5099.85. The Sensex ended up 199.37 points, at 16,839.19.

US markets posted steep gains for a second day Friday, reclaiming a weekly advance as investors anticipated moves by the ECB as well as the U.S. Federal Reserve. The rally was aided partly due to the release of a report from the Commerce Department showing that the pace of U.S. economic growth slowed by less than anticipated in the second quarter as GDP came in at 1.5% (Estimate: 1.2%) as compared to 2.0% in the first quarter. While the report points to continued economic growth, analysts noted that the slowdown still leaves the door open for further stimulus from the Federal Reserve. The Dow Jones industrial average climbed 187.73 points, or 1.46 percent, to close at 13,075.66. The Standard & Poor's 500 Index advanced 25.95 points, or 1.91 percent, to finish at 1,385.97. The Nasdaq Composite Index gained 64.84 points, or 2.24 percent, to end at 2,958.09.

Asian shares extended their gains on Monday, on hopes that US Federal reserve and European Central Bank will work out new stimulus measures to support growth. Japan's Nikkei 225 index was trading 0.6 per cent higher at 8,622.75 and Hong Kong 's Hang Seng index was trading higher at 19,530.12, up 1.3 per cent. South Korea's Kospi index was trading 0.7 per cent higher at 1,845.45. China's Shanghai index was trading flat at 2,131.12.

The BSE Sensex and NSE Nifty gained nearly 1% in early trade today following positive global cues. The BSE benchmark rose 151 points to 16,990.23 and the NSE benchmark went up 45 points to 5,144.75.

ICICI Bank gained another 2% after better than expected numbers on Friday. Maruti fell 2% as traders worried about its Manesar plant. Even its first quarter numbers disappointed the street. Company said, "Adverse currency movement hit Q1 profit. Demand was lower for petrol cars in the quarter."

Deccan Chronicle Holdings was under pressure after reports that Industrial Finance Corporation of India in the winding-up petition said that the company has liabilities running into crores of rupees that may lead to the erosion of the entire net worth of the company and make it commercially unviable and insolvent.

Other Economic and Political News: