1. US Markets end positive: S&P500 grew by 3.16% during the previous week.
2. US unaffected by first rate hike in more than 3 years: As a first step to roll back stimuli, US fed raised the discount rate from 0.5% to 0.75%; this move will encourage financial institutions to rely more on money markets, rather than the central bank, for short-term loans.
3. Bullion strong despite IMF's announcement: IMF announced sale of 191 tonnes (about 8% of Annual Global Gold Sales) of Gold in the open market, this should have ideally brought some cheer to the Gold Bears. Looks like investors are losing confidence on Fiat currency.
4. Mixed signals: Is the shipping industry in for a nightmare or is the nightmare just over? Baltic Dry Index does the deadly cross; 50DMA cuts below 200DMA, but MACD crosses above signal line which is a positive indication BDI chart
5. Bullish signal of 50DMA crossing above 200DMA on dollar index (Dollex). Is this fallout of Greece crisis? Dollex chart
6. L&T enters the Mutual Fund business: L&T Finance Limited (LTF) has completed the acquisition of DBS Cholamandalam Asset Management Company Limited (DCAM). Has been renamed L&T Investment Management Limited, manages AUM of Rs. 2,634 crore.
7. ‘The world is flat’ said Thomas Friedman; Indian markets re-iterate this point: BSE Sensex & CNX Nifty closed flat gaining by 0.2% and 0.4% respectively. Broader market remained weak with Midcap and Small cap indices declining by more than 1% Nifty chart
8. LIC will help markets smile again, likely to pump in ~Rs. 100 bn by March: Govt. keen on offloading stake in PSU banks to LIC and GIC – LIC support became critical for REC issue as well. REC FPO has been subscribed by 0.59 times with retail response being quite poor @ 0.03 times.
9. Fertilizer policy creates a furor among the ruling alliance and also in markets. Fertilizer stocks are beaten down. Another example of “sell on news” tactic.
10. Budget may boost pharma sector: Govt's Vision 2015 statement indicates a CAGR of over 18% for the pharma sector, translating to doubling of revenues to $40 billion over the next 5 years. Government has recently announced the setting up of a venture fund that will infuse Rs.2000 cr. into the pharma sector
11. Domestic Steel to be hot & unrolled!! The steel industry expects the Centre to increase import duty on cold rolled and galvanized steel to 7.5% from 5% and withdraw the 5% duty on ferro alloys as most of these are not produced in India.
12. Telecom stocks, Bharti & MTNL in dumps – will they prove to be contrarian?
Bharti chart
MTNL chart
13. One of the major gaining sectors during the previous week was metals and Hindalco hogged limelight among metals. Hindalco chart
14. Corporates crave for excise duty cuts: According to survey conducted by Assocham, Corporate India wants stimulus package given in the form of excise duty cuts by the government to industry in the wake of the global financial crisis, to continue into the next fiscal
15. Yesterday, Today and Forever? 19 years after the then FM Manmohan Singh presented the budget, the persistent pain in the economy is ‘Fiscal Deficit’. With the stimuli afloat in the market, fiscal deficit is expected to be as wide as 6.8% for 2009-10 against 6% last year Economy charts
16. Ganesha may not speak about markets anymore: Sebi’s warning to investors against astrologers predicting fortunes in stock market has got support from most unexpected quarters — that is astrologers themselves, but what they are complaining against is lack of public data on companies and a free run for ‘technical analysts’ on TV channels
17. Some numbers for thought: A look at them prior to budget would be an interesting preposition. Pls click here
18. In this business if you're good, you're right six times out of ten. You're never going to be right nine times out of ten – Peter Lynch, Legendary Investor
19. The game of speculation is the most uniformly fascinating game in the world. But it is not a game for the stupid, the mentally lazy, the person of inferior emotional balance, or the get rich-quick adventurer.– Jesse Livermore
20. Today is the tomorrow we worried about yesterday - Anonymous
Disclaimer: Right Horizons has used information that is publicly available and developed in-house; and gathered from sources believed to be reliable. Right Horizons does not warrant accuracy and/or completeness of the same. This column is purely for educational purposes, nothing contained herein is a solicitation to trade or recommendation for any specific investment. Right Horizons shall not be responsible for any loss or damage of any nature, including and not limited to direct, indirect, punitive, special, exemplary, consequential, as also any loss or profit in any way arising out of any action undertaken by reading this column.
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