February 29, 2012

Morning Be!!........Sensex rises over 200 points in early trade

The frontline equity benchmarks have surged in early morning trade, with the BSE Sensex closing in on 18,000 milestone and the NSE Nifty surpassing 5450, on the back of all-round buying frenzy. This is the second straight day of strong gains for the Indian markets after falling for four successive sessions from 22nd Feb. to 27th Feb. The upbeat mood is a wee bit puzzling as macroeconomic situation remains precarious and the global backdrop too is not all that confidence inspiring.

After falling sharply on Monday, Indian markets witnessed a smart recovery on Tuesday. Broader markets outperformed the benchmarks led by a sharp spike in infrastructure and PSU banks.

While the BSE Sensex finally closed 285.37pts or 1.64% higher at 17,731.12, the Nifty gained 97.65pts or 1.85% to close at 5,378.85. Broad market indices too ended higher as the BSE Midcap and BSE Small Cap indices gained 3.40% and 2.78% respectively.

Currencies
The Rupee helped by large gains in local stocks, robust capital inflows and easing demand for dollars from oil importers. Forex dealers said weak dollar overseas also aided the rupee sentiment.

Outlook
The Indian Markets could open on a firm note, following positive global cues and consolidate at higher levels throughout the session. Immediate resistances for the Nifty are at 5450-5500. Downside supports are at 5300-5268. Among the sectoral indices, Realty, Capital Goods & Banks continue to look good and could outperform

Sources-IIFL,HDFCSec

February 28, 2012

Morning Be!!......frontline Indian equity benchmarks have opened with a gap, regaining some of the lost momentum after four straight days of losses

Indian Markets
As anticipated, the frontline Indian equity benchmarks have opened with a gap, regaining some of the lost momentum after four straight days of losses. So, the BSE Sensex is back above 17,500 and the NSE Nifty has reclaimed 5,300. The buying appears to be secular at the moment, with most index constituents and most sectoral indices on the BSE trading with a positive bias. The market breadth too is favourable for the bulls so far.

Markets began the week on a negative note as it witnessed the biggest one-day fall on Monday since September 2011 led by huge shorts build up and unwinding of long positions. UP election results expected on March 6 and spike in crude oil prices to 10-month high may also have deteriorated investors' sentiment.

While the BSE Sensex finally closed 477.82pts or 2.67% lower at 17,445.75, the Nifty lost 148.1pts or 2.73% to close at 5,281.2. Broad market indices too ended lower as the BSE Midcap and BSE Small Cap indices shed 3.02% and 3.26% respectively.

Currencies
US Dollar appreciated by 0.6% vis-a-vis the Indian Rupee on Monday. The Rupee fell against the Dollar on the back of weak domestic equities that reached a three-and-a-half week low as concerns that rising oil prices may drag worldwide growth.

Outlook
After a sharp slide yesterday, we expect the Indian Markets to open in the green. However, it is likely to face resistance at higher levels later during the day. Immediate support for Nifty is at 5230, while resistance is at 5370 levels. Among the sectoral indices, Realty & Metals look weak, while FMCG & Healthcare look good and could outperform.

Source-HDFCSEC,IIFL

February 27, 2012

If you have been left out!

The past few days when the stellar rally reached peaking levels, am sure there was a large section of people who has been feeling left out to make a quick 20% on their money and make a killing. The ideal utopian scenario or for someone who could see tomorrow, it could have been easy – enter equities in December and move out in February 2012; thus making a cool 20% and walking away, to put money in FD’s. If it were that simple, then we would have been out of business before I could have finished typing this.

But for those who have always felt that their timing skills are pathetic and that they end up losing almost each time they invest in equities, I guess is that over the next few weeks, their chance to enter and make money would be high. The only problem – which is as old as man himself is with an emotion called ‘Greed’ – he/she wants to almost always catch the peak and trough and proclaim that he is Buffet’s granddad.

But for this emotion, I think for that bunch of people who missed the bus in December 2011, chances are that he could have a chance to invest around those levels could come true. So fortune favors the brave, and one must remember that the bus timing are limited and you just cannot push your luck by skipping busses for the choicest of seats, just hop on to enjoy the ride.

Today’s session was akin to a mini sell off and now is on the back of EU nations still trying very hard to do everything possible to find a solution to the imbroglio. There are consequences for oneself and other on actions when each one of us is standing closely on a ramp and similarly whatever happens to EU in terms of QE3 and monetary easing would definitely impact us asset markets. As has been in the past, the driving force of our markets has been and would be (till the near future) foreign funds flows. The effect of huge fiscal stimulus would definitely impact our / global asset markets.

So while today’s session looks like we are going back to stone age, actually this might the umpteenth time that we are getting a fresh bus to board, but if we “assume” that this will keep happening forever, then we are just making an ‘ass’ of ‘u’ and ‘me’

So time not to fret, take a deep breath, close your eyes and take the plunge.



Morning Be!!.....Sensex has lost ~100 points while the NSE Nifty has dropped below 5400 in the early morning trade

Indian Markets
The main Indian stock indices have kicked off the new trading day and new week on a weak note, extending losses from the last week when the two frontline indices snapped a seven-session winning streak. The BSE Sensex has lost ~100 points while the NSE Nifty has dropped below 5400 in the early morning trade. The Sensex has fallen below the 18,000 mark on Friday.

NSE Nifty was quoting 5,410, down 18 points over the previous close. It has earlier touched a day’s high of 5,449 and a day’s low of 5,406. It opened at 5,448.

The BSE Mid-Cap index was trading down 0.33%, while BSE Small-Cap index was trading flat.

FMCG and Oil and Gas indices are the gainers.

HC, Metal, PSU, Consumer Durables, IT, Power,Auto, Bankex, Realty indices are the losers.

TCS, HDFC Bank, Coal India, ONGC, Sterlite Inds, ITC, Sun Pharma, HUL were among the notable leaders in the Sensex and the Nifty.

Infosys, Wipro, Reliance Infra, RPower, RCOM, DLF, ICICI Bank, M&M, Tata Motors, BHEL,L&T,Hero MotoCorp,Tata Steel,ICICI Bank,Hindalco Inds,SBI were among the notable losers in the Sensex and the Nifty.

The market breadth is weak as the Mid-Cap shares are under-performing the Large-Cap indices. Realty and Capital Goods indices are the biggest laggards so far (down 2-2.5%) followed by Consumer Durables, Banking, Power, Auto and Metals (down 1-2%).

FMCG and Oil & Gas indices are the leaders so far while Pharma, IT, Teck and PSU indices are marginally lower.

Currency
The Rupee ended below 49-mark at 48.93/94 - its three-week high level against the Dollar on sustained dollar selling by exporters and some banks.

Key events to watch for today
India IIP (Y-o-Y)

Today’s Outlook
Today, we expect the Indian Markets to open marginally lower and remain volatile in a range throughout the session. Immediate support for Nifty is at 5400, while resistance is at 5535 levels. Among the sectoral indices, Capital Goods & Realty look weak, while Metals & IT look good and could outperform.
Sources- HDFCSEC, IIFL




February 24, 2012

Tax breaks for education loan & tuition fee!

Beyond the obvious benefits of good education, it also helps that the funds one deploys for education could actually help avail tax breaks. This not a much used avenue for saving taxes, primarily because of lack of awareness. Here is a brief on how one could use the education loan and tuition fee to reduce tax liability…

Education Loan – qualifies under section 80E
Apart from the home loan, this is another loan liability that provides tax breaks. However, do note that unlike the home loan where the entire EMI including both interest and principal would qualify for tax benefit, incase of the education loan, only the interest part would qualify as tax benefit. There is no maximum limit on the interest that one can claim.

The interest rate on educational loans would typically be slightly higher than that of the home loan and marginally lower than that of personal loan. The onus of repayment would lie on the student, and normally repayment will have to start within 6 months of placement or 1 year after completion of the course, whichever is earlier. One can claim the tax deduction for a period of 8 years’ from the year from which the loan repayment is initiated.

The scope of the deduction includes loan taken for the individual, spouse or children (assessee being legal guardian). From assessment year 2010-11, the Government has extended the benefit in Section 80E to all streams of studies including regular courses as well as vocational courses, pursued after passing the Senior Secondary Examination from a recognized Board. The course has to be a full

Morning Bell........NSE Nifty is back above the 5,500 mark after closing below it in the previous session.

Indian Market
The frontline Indian stock indices have posted decent gains in early morning trade, reversing two days of losses. The NSE Nifty is back above the 5,500 mark after closing below it in the previous session.

The market breadth is positive as the broader indices have resumed their upswing following a two-day pause. Most sectoral indices on the BSE are in the positive territory, led by Consumer Durables, Realty, Metals and Power indices. Teck, Capital Goods, Auto and PSU indices too are up smartly.

Citigroup is believed to have sold 145mn shares at ~Rs 670 per share.The block sale of HDFC shares is likely to fetch Citigroup ~US$2bn, according to reports. The stake sale in HDFC is part of the US bank's efforts to shore up its capital base to meet new global banking rules.

Global Market
Most Asian markets are trading higher, although not by a great deal, as investors cheered economic reports out of the US and Germany.

US stock indices managed moderate gains on Thursday, with the S&P 500 index ending near a 10-month high, as investors welcomed a couple of encouraging economic statistics.

European stock indices closed mixed as a downbeat growth outlook by the European Commission offset an upbeat reading on German business confidence.

coming back to India, the seven-week winning streak is under some threat after two relatively weak sessions. The main indices could close the week in red for the first time this year. It is not necessarily a bad thing. A pause is always healthy after such a rise. For those who missed the rally, such corrections could be a blessing in disguise.

The Indian market could consolidate in a sideways fashion in the near term. Most participants won’t want to take a chance in the run up to important domestic events next month. At the same time, uncertainties over the European debt crisis and geopolitical tensions persist.

Technical Outlook
A ‘doji’ like formation in Thursday's trading session indicates indecisiveness after a bearish engulfing pattern on Wednesday. Any upmove beyond 5570 has the potential to negate the bearish structure and reinforce bullish momentum. One should wait for a breakout above 5570 to initiate fresh long positions.

Currency
The Indian Rupee strengthened for a second day vis-a-vis the US Dollar as exchange data showed foreign investors stepped up purchases of the nation's bonds. Dollar inflows also supported the Indian currency, although traders said this was balanced by dollar demand from oil importers through much of the day.

Today’s Outlook
Today, the Indian Markets could open flat to marginally in the positive and remain volatile in a narrow range. We expect the market to witness resistance at higher levels and correct during the latter half of the session. On the downside, Nifty has a strong support at 5450, while the resistance is at 5535. Among the sectoral indices, Realty & Metals continue to look weak, while FMCG, Oil & Gas & Power could outperform.

Sources-IIFL, hdfcsec

February 23, 2012

Morning Bell.....Nifty opening below the 5500 level amid volatility


Indian Market

The Nifty was subdued in an early trade, opening below the 5500 level amid volatility. Consistent inflow of foreign money has been supporting the market whereas on other side, concerns like rising oil prices, disappointing economic data from major continents like US & Europe still weighed on the market.

The main Indian equity benchmarks have turned virtually flat after a positive opening, tracking weakness in most Asian markets. Markets in the US and Europe also ended in the red on Wednesday amid concern that the long-running debt crisis in the eurozone was having an adverse impact on the global economy.

Wednesday’s drop was only the second such fall this year. That goes to show the groove that the market is in, thanks largely to the liquidity deluge unleashed by global central banks. Wednesday’s provisional FII figure should provide some succor on the F&O expiry day.

Global Market
Doubts over the effectiveness of the second bailout for Greece is also acting as a dampener for the world equity markets following a strong start to the year. Fitch Ratings cut Greece's sovereign credit rating to C from CCC. The eurozone's composite PMI fell in February, raising the specter of recession. Europe and Greece may continue to be in the spotlight in the coming days as well.

Commodities
Crude is at a nine-month peak while gold is at three-month high. The dollar is at seven-month high vs. the yen. We could see a choppy session with intraday gyrations possibly peaking in the afternoon.

Today’s Outlook
Today, the Indian Markets could open on a flat note and remain volatile in a narrow range. It might make an attempt to inch higher during the day, but is likely to find resistance at higher levels. On the downside, Nifty has a strong support at 5450. The immediate resistance for Nifty is at 5560. Among the sectoral indices, Auto, Realty, Capital Goods & Banks are looking weak and could underperform, while FMCG & Oil & Gas could outperform.
Sources-IIFL, hdfcsec, ET, moneycontrol

February 22, 2012

Morning Bell.......The Nifty has surpassed 5600, while the Sensex is near 18,500. Both the indices have rallied 18% YTD on the back of heavy FII inflows. Last year they lost 25% each.

Indian Market
The key Indian equity benchmarks have gained modestly in early minutes of trade, tracking a recovery in some Asian peers. The market breadth is favorable for the bulls as the broader indices too are up smartly. Most sectoral indices on the BSE are in the positive terrain.

A meaningful correction may have eluded us so far this year but could hit us anytime given that the market has entered the so-called overbought zone. The question troubling many participants is: how long can this liquidity-driven ‘risk on’ rally last? The Nifty has surpassed 5600, while the Sensex is near 18,500. Both the indices have rallied 18% YTD on the back of heavy FII inflows. Last year they lost ~25% each.

The MCX IPO launches today and will be open for three days. The issue is likely to receive very good response from all categories of investors. Whether the MCX IPO will revive the comatose primary market remains to be seen.

Sterlite Industries and Sesa Goa could be in the spotlight amid reports of Vedanta Group Plc mulling a merger of the two companies. Kingfisher Airlines has received a lifeline from SBI and thus could recover. RIL has announced a JV with Russia’s Sibur for butyl rubber.

Gujarat Pipavav and KSB Pumps will declare their results today.

Global Market
European indices fell despite Greece getting another rescue package. US benchmarks finished flat. Back home, retail level inflation is still elevated. Crude prices too remain uncomfortable. Liquidity continues to be tight, stoking speculation of another CRR cut in March. A rate cut may take a while to materialize. The Union Budget is another domestic event to look forward to in the coming days apart from the outcome of UP elections.

Technical Outlook
The earlier resistance of 5550 has now turned into a strong support for the Nifty. The current rally has the potential to stretch till 5700 in the coming days. Hence, we recommend adding long positions on every dip with a stop loss placed at 5550 on a closing basis.

Today’s Outlook
Today, the Indian Markets are likely to open marginally lower following negative Asian cues and than could remain range bound during the day. While the underlying trend is up profit booking during the day cannot be ruled out. The immediate support level to watch is 5550 while the immediate resistance levels to watch are 5660 and 5890. Among the sectoral indices, Realty and Consumer Durables appear strong and Health Care and IT appear weak.
Sources- hdfcsec,IIFL

Greek bailout dance!

Post the earnings for Q3 FY12 which has been decent to say the least; the action has now decisively shifted to Greece and what would happen with default or a bailout. In all likelihood, it looks like the EU prefers a bailout to a default and the flow of funds has morphed into a fountain of life (which flows perennially) in the European Union. The funny thing is that all of the asset managers who matter (read who influence the world markets) just go with the flow; which means that just like the YEN carry trade the same thing now is likely and is happening with the Euro. This Euro carry trade, it is estimated would happen at least over the next 4-6 months.
So when these taps of liquidity flow, they tend to go to the shallowest of corners of the plain; which means places like Asia where the engines are still hot and running.

An interesting piece that I keep following on a periodic basis is in the link above and this summarizes what is happening with the situation across the risk markets today. I found this piece very interesting. In summary, suffice to say that though we are doing excellent at this moment, we are not out of the woods yet. Far from it.

Finally, today’s session, was about higher ground and even more optimism and now actually bordering on “pushing the envelop” which is why getting too much carried away at this moment is a thing one should be very wary about. Though it appears that we are very close to the onset of a nice and steady bull rally, the “stars” are yet to align in a perfect setting for the same.







February 21, 2012

Morning Bell...Greek bailout package renewed hopes among investors.

Headlines
The Sensex opened flat on Tuesday to make a swift upward move as news of a Greek bailout package renewed hopes among investors. The Sensex was trading 87 points up at 18,375.94 and the Nifty was gaining grounds with a 26 point up move to 5,590.25.

Indian Market
The key Indian stock indices advanced modestly in early morning trade amid media reports that euro area finance ministers had reached an agreement on a second bailout package for Greece. The euro gained versus the US dollar while crude oil futures also rose after the announcement. US stock futures were also trading higher and Asian benchmarks pared some of the intraday losses.
The BSE Sensex surpassed 18,400 while the NSE Nifty crossed 5,600 in opening minutes of trade on the back of strength in Capital Goods, Realty and Power stocks. Select stocks in Oil & Gas, Metals, FMCG, PSU, Banking and Pharma sectors are also trading higher. On the other hand, Consumer Durables, IT and Teck indices are in the red.
The market breadth is positive as the Small-Cap and Mid-Cap indices are marginally out-performing the frontline indices. The BSE Small-Cap index was up ~0.8% while the BSE Mid-Cap index rose ~0.6%.

Technical Outlook
The NSE Nifty broke out above 5430 last week and closed comfortably above the resistance of 5550. This upmove happened despite uncertainty over Greece and higher oil prices. The ‘spinning top formation ’on Friday showed indecisiveness among the traders but any positive opening today would be suffice to extend the rally towards 5700. There is a 'left out' feeling in the market and every one is waiting for a dip to initiate long positions.

Outlook
Today, the Indian Markets could open lower following negative Asian cues and remain volatile in a range. The markets are likely to take cues from Dow Futures & European markets during the latter half of the session for any further direction. If the much-awaited Greek debt deal goes through, then the optimism could take the markets further higher. Immediate upside target for the Nifty is at 5700. However, weakness could emerge if the supports of 5500-5475 are broken. Among the sectoral indices, Capital Goods, IT & Banks look good, while Auto & Healthcare could underperform.

Sources-IIFL,HDFC SEC

February 18, 2012

Weekly Market Snapshot....Nifty breaking out of its recent highs of 5428 and continuing its uptrend

Indian Market
After taking a breather last week, the week gone by saw the Nifty breaking out of its recent highs of 5428 and continuing its uptrend. The Nifty thereby ended with W-o-W gains of 3.4%. It was the seventh consecutive week of gains for the Nifty.
A new long term bull market was also confirmed in the process as the Nifty moved above its previous long term highs of 5400.Reflecting the positive price action seen this week, market breadth was positive in four out of the five trading sessions of the week.
With the liquidity flow continuing relentlessly, indices have no other way but to look up. The truncated week could see some wild swings though. The left out feeling is there in some quarters and a few are wary of the sudden rise and may prefer to sell into the strength. The week will give some opportunities to get in as the global macro factors could cause a temporary cooling anytime.

Global Markets
Among the global factors to watch out for there is Greece which is showing signs of pressure as the country faces a March 20 bond redemption totaling 14.5 billion euros ($19 billion). While the nation’s political leaders have signed up for fiscal retrenchment and detailed 325 million euros in new budget cuts for this year, euro-area governments have yet to approve a second bailout of 130 billion euros

Also, ECB's second tranche of the LTRO is due at the end of February and many see at least a similar take-up of funds as was seen in December. It may be recalled that more than 500 banks across Europe borrowed €489bn from the ECB at 1% in December


Key Events
PM takes steps to address coal supply issues for power projects
Inflation falls below 7% in January
Outlook of the week
With the underlying trend remaining up on all time frames (Short term, intermediate and long term), traders will need to watch if the Nifty can hold above the immediate supports of 5500-5475 in the coming week. A close below these supports could lead to some more weakness in the markets. On the upside, our immediate targets are at the next intermediate highs of 5702.
Sources-hdfcsec, IIFL

February 17, 2012

Diwali 2012, Christmas 2011 or ongoing Chinese new year?

When we were hiking in the Right Horizons offsite that was held in November 2011, I remember that every minute of the climb would appear pretty ok in terms of strain that one was undergoing, and the ground appeared fairly ok to climb – with not real apparent steepness, except at certain places. However, when the climb was over post the 30-45 minute trek and you reached the top; you turned to see some stunning views. More important, in the 30 minute trek, you had slowly but surely climbed some serious distance to the top was evident only from the peak and not from the intermediate points of the climb.

Since January 2012 to today, while it might have appeared that the market has indeed climbed and given good returns, just look back now and you know what has happened. YTD, the Nifty index has gained 20.33% and this has to be seen in the context of what has happened in the entire of 2011, since for the entire year we were down around 24% and in 45 days we are close to recover what we lost in an entire year. So you lose patience and do stupid things and the markets punish you on both sides. You take out money saying you always lose money in stock markets and then pulling a fast one on you by rising so fast that you would think that I could have waited.

Today’s session has been quite relentless in terms of rising nature of the market. Everyone is expecting a fall, and these are times where the market would surprise you on the upside too; jus the same way it did last year. When everyone expected the fall to stop at every lower level. He who has been just putting money and averaging at every level must be a happy and content man.

For now it looks like the Shewag blitzkerg, all the way. In a way it also looks like Diwali is coming in way to early for comfort, or you could also argue that it is still Christmas of 2011; better still the ongoing Chinese New Year. Happy New year.

Impact of Rate cut..


The RBI, after a long hiatus, finally cut rates for a change. Over the last 18 months, interest rates have been increased 13 times in a row. The new year came with some good news on the monetary front. The rate cut of 50 bps (from 6% to 5.5%) on CRR (Cash Reserve Ratio) was a welcome change - CRR is the percentage of bank deposit that lenders have to keep with the RBI and this reduction is expected to inject Rs. 32,000 crore liquidity into the economy.. The cut in CRR is seen as a first step towards softening inflation substantially. In addition to this, the lending rates on Home loans, auto loans and personal loans etc would also come down.

The rate cut logic
Even given that it would not be an unmixed blessing, the rate cut was predominantly mooted due to the stress that it laid on the economic growth. There have been repeated revisions in the GDP guidance and negative sentiments on growth prospects in the economy. The rates cuts have been triggered with the motive to rein in inflation, maintain the GDP growth at decent levels and improve sentiments in the economy.
Post the interest rate cut it is anticipated that there would be lowering in interest rates on loans – retail / corporate alike. It is also expected that the banks would use the additional liquidity to lend more money thereby creating a robust economic environment which will in turn help boost GDP growth.

Fixed Deposits / Bonds – riding the wave
Fixed income instruments became popular with every upward revision of interest rates, but now given that there is not that much of a dearth of liquidity in the economy; the prevailing high interest rates are likely to drop a notch lower. In no time, the interest rates on long term fixed deposits and bonds can moderate. For those who have been prudent to lock-in the prevailing interest rates, it is time to feel proud about yourself. For those who lost out on this opportunity, better late than never is what we have to say!

Outlook
The rate cut brought great relief to the economy, the investor sentiment and consumer confidence has been restored to some extent atleast. There are telling signs of inflation softening, and this should eventually rub off on the borrowing rates as well. For the fixed income investor, there is still time to lock in the higher interest rates, in the future over a 6-12 month period rates are likely to come off more sharply.

Source-:
Anil rego, CEO Right Horizons
Published in-
Financial Chronicle

Morning Bell......The BSE Sensex opened up 180 points on opening trade

Indian Market
The BSE Sensex opened up 180 points on opening trade, after indications eurozone officials would soon approve a long-awaited bailout for Greece boosted Asian markets. FIIs have invested nearly USD 4.5 billion in last 44 days. Buying was seen in realty, capital goods, power, consumer durables and banking stocks.

Global Markets
U.S. stocks closed ~1% higher on Thursday as positive domestic economic data comforted investors regarding Greeks second bailout. Investors confidence pushed the Dow to its highest level since May 2008. Nasdaq is back in dot com boom territory hitting a peak it hasn't seen since December 2000.
European markets were in a jittery mood Thursday due to uncertainty over whether Greece will get vital bailout cash to avoid defaulting next month, but more buoyant U.S. jobs data helped shore up sentiment. It finally ended on a flat to positive note. Britain's FTSE 100 fell 0.1%, DAX in Germany dropped 0.1% and France's CAC 40 added 0.1%.
The Indian ADRs ended on a mixed note. Tata Motors, Tata Communications and MTNL ended in red falling by 1.1%, 1.1% and 2.7% respectively. Infosys and Wipro were up by1.1% and 0.6% respectively. Dr Reddys, rose by 0.5% while ICICI Bank and HDFC Bank rose by 0.4% each.
Today, the Asian markets are trading in the green with Shanghai & Hang Seng trading up by 0.1% & 0.8% respectively. Nikkei & Strait Times are trading in the green by 1.8% & 0.5% respectively, while Kospi & Taiwan are trading up by 1.5% & 0.8% respectively. SGX Nifty is trading up by 40.5 points over Thursdays close.

Currencies
The rupee was little changed early on Friday as dollar demand from importers offset the comfort from improved global risk appetite

Outlook
Today, the Indian Markets could open in the green following positive global cues and than remain range bound during the day. The immediate supports to watch are at 5475 and 5435 levels while the immediate resistances are at 5575 and 5600 levels. Among the sectoral indices, Realty, power & Capital Goods could witness some profit taking after a run up yesterday.

Sources-Moneycontrol, HDFCsec

February 16, 2012

Morning Bell.....Nifty tests 5500,5100 is likely to be a strong support for the Nifty

Indian Markets
The Sensex was down 89.26 points or 0.49% at 18113.15, and the Nifty was down 28.20 points or 0.51% at 5503.75.
About 1321 shares have advanced, 1078 shares declined, and 1000 shares are unchanged.
The Indian market opened on a negative note tracking weak global cues. The Nifty is now trading at the highest level in more than six months. China reiterated that the country will continue to invest in European government debt to help resolve Europe's debt problems. Key benchmark indices in Hong Kong, Tokyo and South Korea also rallied to six-month highs.

The Sensex was down 36.33 points or 0.20% at 18166.08, and the Nifty was down 16.15 points or 0.29% at 5515.80. About 748 shares advanced, 441 shares declined, and 2210 shares remain unchanged.

In the largecap space, BHEL, Jindal Steel, Tata Power, NTPC and Larsen were up 1-5%. Coal India, Sun Pharma, Sterlite Industries, DLF and Reliance were down 1

Global Markets
U.S. stocks closed lower on Wednesday as the euro hit a 1-week low on uncertainty over Greece's debt problems. Dow Jones tumbled 97 points, or 0.7%, to end at 12,781. S&P 500 fell 7 points, or 0.5%, to 1,343. Nasdaq dropped 16 points, or 0.5%, to 2,916.
Today, the Asian markets are trading lower with Shanghai & Hang Seng trading lower by 0.1% & 0.7% respectively. Nikkei & Strait Times are trading in the red by 0.3% & 0.7% respectively, while Kospi & Taiwan are trading lower by 1.1% & 0.4% respectively. SGX Nifty is trading lower by 17.5 points over Wednesday?s close.

Currencies
The Indian Rupee ended stronger on Wednesday vs the US Dollar buoyed by large gains in local shares, but off its day's highs on persistent dollar demand by oil firms.

Outlook
Today, the Indian Markets could open lower following negative global cues and trade in a range with negative bias throughout the session. Considering a sharp run up over the last few trading sessions we expect some correction to take place in near term. Strong support for Nifty is at 5435, while immediate resistance is at 5575. Among the sectoral indices, Realty, Banks & Capital Goods could witness some profit taking after a sharp run up yesterday.

Sources- HDFC SEC, moneycontrol

February 15, 2012

Morning Bell.....Sensex crosses 18k mark,inflation has cooled off in January

Indian Market
As anticipated, the key Indian equity benchmarks have opened with a gap on the back of a firm trend across other Asian markets. Sentiment in Asia has been lifted by media reports that Greek political leaders will give a written undertaking on new budget cuts to international lenders on Wednesday to clinch new aid and avoid default next month. Repots also quoted Chinese central bank governor as saying that China will continue to invest in eurozone government debt.

As far as India is concerned, the good news is that inflation has cooled off in January, giving elbow room to the RBI to ease its hawkish monetary policy further and support growth. FII inflows have remained positive in February despite bad news from the overseas markets. Most of the liquidity gush has been supported by ultra-loose monetary policies in the developed nations.

The Indian market, the NSE Nifty has been sustaining above the support of 5350 for the past few sessions despite bad news from the overseas markets. A gap up opening in today’s trading session could confirm resumption of a fresh uptrend with immediate resistance seen at ~5580.


Global Market
The leaders of Greece’s two biggest political parties will provide written commitments to budget cuts, a government official in Athens was quoted as saying.

Asian stocks extended gains after China’s central bank governor Zhou Xiaochuan was quoted as saying that the country was ready to be more involved in resolving the long-running European debt crisis.

US stocks pared losses in the last half hour of trading on Tuesday amid signs that Greek leaders could soon seal the deal on fresh international rescue funds. US stocks had slumped earlier in the wake of disappointing retail sales data.

But, overall world equity markets are showing some signs of fatigue this month after a surprisingly strong January. Corporate results have been mixed in the backdrop of a slowing economy.

Concerns about the eurozone remain at the forefront after Moody’s downgraded six European nations and warned the UK on its ‘AAA’ grade. Greece continues to stumble in its attempts to secure more international aid before next month’s scheduled repayment.

Currencies
The Indian Rupee ended lower on Tuesday vis-a-vis the US Dollar as strong dollar demand from local oil companies offset a rise in the share market and some recovery in the euro. The rupee ended at 49.36/37 to the dollar, compared with Monday's close of 49.19/20.

Today’s Outlook
Today, the Indian Markets could open in the green and continue to trade in with a positive bias for the day. The immediate supports to watch are at 5350 and 5300 levels while the immediate resistance levels are at 5450 and 5500. Therefore, one must remain a bit cautious and wait for more signs of strength in the markets.
Sources- IIFL, hdfcsec

February 14, 2012

Morning Bell.......Indian Indices trading flat,For the day, all eyes will be on the inflation data for January

Indian Market
For the second day in a row, the main Indian equity benchmarks have started day's trading on a flat note as market players take stock of the situation following January's stellar rally. The undercurrent is cautiously optimistic amid lingering concerns about weak domestic economic backdrop and worsening eurozone credit crisis. Even technically, the frontline indices look a bit tired and could see some pullback in the near term from the current levels.
For the day, all eyes will be on the inflation data for January, which is most likely to show moderation from December. The January wholesale price index (WPI) based inflation is expected at 6.7% as against 7.47% in December. Core inflation is also likely to slip to below 7%. However, the impending drop in headline inflation is partly due to a high base effect. Inflation could turn back up, especially if the Government allows oil companies to hike fuel prices in the wake of the recent spurt in crude oil prices.
So, the RBI will keep a strong vigil on inflation given the elevated crude oil prices and the Centre's ballooning fiscal deficit. It may slash the CRR again in March but a cut in the repo rate may not materialise till the central bank's annual policy meeting in April.

Meanwhile, the RBI has decided to change the Bank Rate with immediate effect by realigning it with the Marginal Standing Facility (MSF) rate, which in turn is linked to the policy repo rate. Accordingly, the Bank Rate shall be 9.5% with effect from the close of business on Monday.
Shares of banking titan SBI are up after reporting better-than-expected growth in net profit for the fiscal third quarter. Although concerns prevail over deteriorating asset quality in a slowing economy, the bank's chairman has said that the worst is over as far as NPAs are concerned.

Major Results Today: ABG Shipyard, Akzo India, Alok Industries, Amtek Auto, BL Kashyap, BPL, Deccan Chronicle, Dhanlaxmi Bank, Dredging Corp, Educomp, Essar Oil, Gati, Gitanjali Gems, Graphite India, Great Offshore, GVK Power, HDIL, Hubtown, IVRCL, Jaiprakash Associates, Kingfisher Airlines, Kohinoor Foods, Koutons, Max India, Monnet Ispat, Nestle India, Nitesh Estate, PSL, Ramky Infra, REI Agro, Reliance Infra, SCI, Supreme Infra, Tata Motors, Tecpro Systems, Unitech, UTV, Viceroy Hotels and Voltas.

Global Market
Most Asian markets are trading with a negative bias following the mass downgrade of euro area nations by Moody's. Their counterparts in the US and Europe gained overnight after Greece moved a step closer to securing second round of bailout money from international lenders.
The back-and-forth between risk aversion and risk tolerance may continue market players take stock of the situation. Stick to a measured, stock specific approach to avoid short-term volatility. But, beware of dodgy small-caps and mid-caps.

Today’s Outlook
A higher close on Monday following last week's spinning top pattern reinforces bullish stance on our markets. The Nifty has been flirting with the resistance of 5430 for the past 3-4 trading sessions. Buying momentum could return if the Nifty manages to move past this barrier. It might cross 5500 in the near term but is bound to face hurdles on the way.
Source- IIFL,

Why this Stagnancy di…

Over the past few days the speed bump on the index movement has been hit, or so it seems. There seems to be a tug-or-war like situation on the movers of the index, with counters such as RIL, automotive players such as Bajaj Auto, Tata Motors and Hero Moto Corp., etc. Steel counters such as SAIL and Tata Steel; and other beta counters but small time influencers such as Rcom, Sterlite are proving to benefit the index. The draggers include a few IT names INFY, Wipro and financial counter such as SBI which declared soft results were the target of the bears.

Until such time that we are still a bit tentative on the counters that were listed above, and we are yet to push the valuations on the ones where there is bullishness, expect today like logjam where the markets would see swings that were seen.

Today the thankful aspect was that despite ending of the earnings season, the market seems to have stayed put; and that is actually a consolation on the background of what has happened in 2011. Also, it looks like until, at least the global markets are positive this stagnancy would continue. Now the action really would shift meaningfully onto events. UP Elections, govt. stability, RBI policy and host of events taking center stage over the next few weeks.


February 10, 2012

Morning Bell.....key Indian equity benchmarks have gained modestly in early minutes of trade after a really slow start

Indian Markets
The key Indian equity benchmarks have gained modestly in early minutes of trade after a really slow start. The NSE Nifty remains above the psychological level of 5400 while the BSE Sensex is trading above 17,800. the BSE Sensex was 17,875, up 44 points over the previous close. It had earlier touched a day’s high of 17,881 and aday’s low of 17,798. It opened at 17,817.

Tata Power is trading firm ahead of its Q3 FY12 earnings while DLF is under some pressure before its results. Tata Steel has gained after its Q3 results but Hindalco is in the red. RCOM is up before its Q3 earnings. ACC has advanced after posting strong quarterly profits. L&T, Bajaj Auto, Grasim, SAIL, Sesa Goa and BPCL are among the top leaders so far.

December IIP print is seen between 2.5% and 3.5%. This is slower than November’s reading of 5.9%. However, the markets may not get swayed much as the IIP data generally has been quite erratic.

Global Markets
The undertone has been buttressed by news that Greek leaders have reached an agreement on new budget cuts that are needed to get more international money and avoid a debt default. However, the eurozone finance ministers are yet to clear the new bailout funds pending an approval of the austerity measures by the Greek parliament.

Meanwhile, the US Labor Department’s count of Americans filing initial claims for jobless benefits dropped by 15,000 last week to 358,000. The four-week moving average fell to 366,250, its lowest since April 2008.

China’s exports fell for the first time in more than two years in January as trade was disrupted by the weeklong Chinese New Year holiday. The overseas demand was also hit by Europe’s prolonged debt crisis.China's exports declined 0.5% from a year earlier, the customs bureau said today. Imports dropped by a more-than-forecast 15.3%, leaving a trade surplus of US$27.3bn.

Globally, equities have got off to a strong start in 2012. So, don’t be surprised if market players turn a little hesitant in pushing stocks much higher.

Major Results Today:
Apollo Hospitals, Aurobindo Pharma, BPCL, Britannia, DLF, Eros International, Gammon Infra, GE Shipping, Hathway Cable, Hotel Leela, IDFC, JSW Steel, Lovable Lingerie, MMTC, MTNL, Neyveli Lignite, Pantaloon Retail, Pipavav Defence, Reliance Capital, RCOM, Shriram Transport, Sun TV, Tata Chemicals and Tata Power.

Outlook
Today, the Indian Markets could open lower following negative Asian cues, but could make an attempt to inch up later during the day. A move above 5,420 on the Nifty could result in further upside. Meanwhile, 5330 level remains a strong support. Among the sectoral indices, Banks, Auto & Consumer Durables continue to look good, while FMCG & Healthcare could relatively underperform.

Sources-IIFL,Hdfcsec

February 09, 2012

Life doesn’t stop, so shouldn’t you. Keep walking…

Sorry this is not a covert (surrogate) advertisement to promote Jonny Walker label products. I thought this title is apt for how things stand at the cross roads on the investment spectrum for Indian investors. Today, the market was wayward and looked like it will fall at the slightest hint of news. Greek default, another round of breakdown in debt talks and all the slowdown issues bugging the Euro land, would rub its way onto us.
So I thought it would be good to take sometime and tell you all, what would happen if Greece defaults over the next few days. What would be the impact of it on all of us. Just to keep the answer of this simple and not beat around the bush as much. Rather than answering this question directly, let me ask you guys, if you remember the Asian financial crises in 1997-1998, when Indonesia defaulted on external debt payments, what happened?
Actually, nothing worthwhile for us. In fact for the country itself, more than 10 year post that default it has been amongst the fastest growing emerging markets economy. So technically if Greece defaults the world is not going to stop functioning. A lot of people, read developed countries, who hold Greek debt would have to shave off a few million dollars of their worth, most notably banks and financial institutions; but beyond that it would be life as usual for people in Greece and else where in EU land. They will NOT stop breathing and eating. They will pick up where they lost out from, hopefully learn and move one.
For us, how in the world does it matter. We neither hold a lot of EU debt, nor trade in a big way, nor import European food to eat, so life will just go on with elections, food & floods and domestic problems enough to take care till 2030, at least.
When we look back, it would be the same way as we do today at the Asian Financial crises. We will have to tell ourselves to move ahead, tighten our shoe laces and start walking.

Or rather as the ad said – Keep Walking…

Morning Bell.....Indices are down,concerns about Greece's ability to avert the eurozone's maiden debt default.

Indian Market
The frontline Indian equity benchmarks have opened with a negative bias as they continue to consolidate in a sideways fashion in the wake of January's strong upmove. The undertone is a little cautious amid concerns about Greece's ability to avert the eurozone's maiden debt default. Also, China's inflation data released today came in higher than expected, partly due to seasonal effects. FII inflows have tapered off slightly but remain positive. Data on direct tax collection and bank credit is not encouraging though.

Shares of top Metal companies such as Tata Steel, Sterlite Industries and Hindalco are down. Shares of Hindalco have tumbled as the latest quarterly earnings report from Novelis has fallen short of consensus estimates.

Shares of IT majors Infosys and TCS are also trading lower after NASSCOM predicted a slower growth in IT exports for FY13. Also, Cognizant Technology has announced strong results for the latest quarter and has projected a 23% growth in topline.

The market breadth is positive as the Small-Cap and Mid-Cap indices have outperformed the Large-Cap peers so far. The performance of the sectoral indices on the BSE is mixed. While CD and Realty indices are the top leaders so far, IT, Metals and Teck indices are among the notable laggards.

An inside bar on Wednesday's trading session indicates indecisiveness at higher levels, with Nifty getting stuck in a range of 5300-5420. However, such sideways move in the past three trading sessions should be considered as consolidation after a big upmove. One should wait for a breakout above 5420 for initiating fresh long positions.

Global Market
The market is again turning as unpredictable as the weather even as it consolidates after a spectacular rally. The trend is likely to continue today as well as the Greek debt drama drags on and data shows faster-than-expected inflation in China. Bank of Korea has left borrowing costs steady. Japan’s core machinery orders dropped 7.1% in December.

Talking of economic stats, growth in the direct tax receipts remains slow while credit offtake too continues to moderate. Car sales for FY12 may be either flat or even tad lower. On the plus side, FII inflows are still positive while the domestic funds are more cautious.

The opening is likely to be wee bit cooler as global investors fret over Greece’s inability to seal a deal on second bailout. Asian markets are mostly down post the Chinese inflation data. US markets managed modest gains while their European counterparts finished mixed.

Lots of results are on tap today. Watch out for the outcome of the ECB and Bank of England policy meetings. But, all eyes will be on Greece as it seeks to secure more international aid to avoid a default.

Major Results Today:
ACC. Adani Enterprise, Alfa Laval, Ambuja Cements, Anant Raj, Apollo Tyres, Cummins India, Fortis Healthcare, Gammon India, GTL, GTL Infra, GNFC, GSPL, Hikal, Hindalco, HPCL, Indiabulls Securities, Jindal Saw, Jindal Stainless, JK Tyre, Kernex Micro, KRBL, Moser Baer, MRF, NDTV, Network18 Media, Page Industries, Rajesh Exports, Sundram Fasteners, Talwalkar's, Tata Steel, TV Today and TV18 Broadcast.

Outlook
Today, the Indian Markets could open marginally lower and then trade in a narrow range. During the latter half of the session, it could take cues from Dow Futures & European markets for any further direction. Immediate support for Nifty is at 5300, while resistance is at 5396 levels. Among the sectoral indices, Realty, Metals & Oil & Gas look good while Healthcare & FMCG look weak & could underperform.
Source-IIFL, hdfcsec

February 08, 2012

Morning Be!!.........Indian Indices up in the early trade

Indian Market
The BSE Sensex was 17,678, up 56 points over the previous close. It had earlier touched a day’s high of 17,689 and a day’s low of 17,631. It opened at 17,631.
NSE Nifty was quoting 5,353, up 18 points over the previous close.It has earlier touched a day’s high of 5,354 and a day’s low of 5,335. It opened at 5,343.
The culprit for Tuesday's insipid session was the advance GDP estimate for FY12. It shows less than 7% growth for the first time in three years. Hopefully, the final reading will be a little higher.
The Indian economy has lost steam and the Government needs to act now to give it a fillip. The upcoming Budget will be crucial in this context. But, before that the market will have to grapple with state elections. A favourable result for the UPA will be seen as a positive. On the flip side, the undertone might be hit in case of an adverse outcome for the Congress.

Global Markets
Asian markets are mostly up while the US and Europe stocks pared losses overnight. Reports point to some progress in talks to save Greece from a default.
Leaders of the three political parties that back Prime Minister Papademos's interim unity government are set to meet the premier in an effort to finalize details of the program.However, the meeting was postponed until Wednesday, according to media reports.
Separate news reports indicated that Greek government officials were drafting a final agreement on budget cuts to be presented to political leaders. The agreement on fresh austerity measures is seen as necessary to avoid a disorderly default.
Also, Federal Reserve chief Ben S. Bernanke has reiterated his readiness for more stimulus if the need arises. But, one must remain on guard after a sharp and swift rally.

Currencies
The US Dollar rose against the Indian Rupee by 0.3% to Rs.49.2 on Tuesday as oil importers' demand for the greenback and a negative local share market offset comfort from dollar inflows. Outlook on the local currency is turning increasingly uncertain due to continuing concerns over Greece's debt problems, and the political logjam that continues to hem in local reforms as well as the persistently high inflation.

Commodities
Oil gained a second day in New York after an industry report showed crude stockpiles shrank in the U.S., the world’s biggest consumer of the commodity.

Outlook
Today, we expect the Indian Markets to open in the green following positive global cues and trade in a range with positive bias. Immediate resistance for Nifty is at 5389, while support is at 5300. Among the sectoral indices, Banks and Oil Gas look good. After correcting yesterday, Capital Goods & Realty could also bounce back today. However, FMCG index could underperform.
Source-hdfcsec, IIFL

February 07, 2012

Calendar Feb 2012

Morning Be!!......Indices up,but the sentiment remains edgy amid concerns about Greece's ability to secure a second bailout package

Indian Market
The frontline Indian stock indices are trading with moderate gains in early minutes of trade but the sentiment remains edgy amid concerns about Greece's ability to secure a second bailout package from the international lenders to avert a default. the market also seems to be taking some breather after five straight weeks of gains. Technically, the market does appear to be a little bit overbought. So, traders should be cautious at this juncture and wait for the confirmation of an end to the bear market.
The BSE Sensex was 17,743., up 36 points over the previous close. It had earlier touched a day’s high of 17,828 and aday’s low of 17,720. It opened at 17,813.
NSE Nifty was quoting 5,369, up 8 points over the previous close.It has earlier touched a day’s high of 5,413 and a day’s low of 5,362
The shares of Reliance Industries have edged higher after Goldman Sachs upgraded the index bellwether to a 'Buy' from 'Neutral', citing a potential gain in margins on increased refining and recovering oil demand. Goldman raised its target prices for the oil and gas major to Rs. 970 from Rs. 960 previously.
Shares of Hindustan Unilever Ltd. (HUL) are down a day after the FMCG giant posted better-than-expected Q3 net profit on rising prices and volume growth. However, HUL did warn about headwinds from an uncertain global environment.
HUL said it could have to deal with challenges arising from inflation and currency volatility. However, it vowed to maintain relentless focus on cost management and execution to contain these threats.

Major Results Today:
BILT, Cadila Healthcare, GMR Infra, Hindustan Oil Exploration, ICRA, IL&FS Transportation, JK Lakshmi Cement, M&M, Omaxe, Opto Circuits, Phillips Carbon, Radico Khaitan, Triveni Engineering, UB and VIP Industries.

Global Market
Most Asian markets are down today amid growing tensions over the fate of Greece as the debt-ridden eurozone nation's leaders failed to adhere to the Monday's timeline for accepting the terms of the second round of bailout.
The market is divided over whether the wrangling over Greece's debt restructuring talks would eventually be resolved or trigger contagion across other vulnerable eurozone countries.
US stocks finished flat as Greek political parties failed to agree on terms for a new bailout package. European stocks declined as talks between Greece and various other stakeholders drag on amid rising threat of a default. Willy-nilly, Greece has become a test case for the eurozone as it struggles to rein in a long-running debt crisis.

Other events to watch out for today include: interest rate decision in Australia, industrial production in Germany and Federal Reserve Chairman Ben Bernanke’s testimony.

Currency Update
The Indian Rupee ended a four-day winning streak on Monday, reversing early gains that saw it rise to a more than four-and-a-half month high, as US Dollar demand from local oil refiners and big companies offset a rise in local shares. A report by rating agency Standard & Poor's outlining the numerous hurdles faced by India in maintaining its stable rating outlook and the lingering Greek debt crisis weighed on the unit.

Key Events
The advance GDP estimate for FY12 will be out today. The numbers are unlikely to be upbeat and most of the reasons are well known. The Indian economy is likely to grow by ~7% in FY12 vs. 8.4% in FY11. However, stock market tends to discount events well ahead of time and therefore the GDP data may not hurt sentiment.

Outlook
Today, we expect the Indian Markets to open marginally in the green and than continue to remain range bound during the day. Immediate resistances for Nifty are at 5389 & 5398 levels, while supports are at 5300 & 5275 levels. Among the sectoral indices Realty, Capital Goods and Metal could witness correction during the day.
Sources- India infoline,hdfcsec

Temptation to throw the towel

After a massacre that was seen in 2011 in the equities and the performance in 2012 so far, everyone appears to be saying that probably this could be the best time to get out. On surface it appears a good argument, what with the markets providing YTD returns in the range of 16% and that too without any intermediate correction or stopover. This could be particularly relevant for investors who would be invested over the past 18 or so months and seen their investment value erode.

However, just as investment value in the stock markets erode without providing any time to think or ponder, so does bull markets happen when everyone is busy trying to figure out when the next fall would come by. The markets are ever mercurial and understanding that is half the battle won. On a broad thought process level, being plain contrarian would works wonders and as I always mentioned in the past quoting Warren Buffet – “be greedy when others are fearful and fearful when others are greedy”. This mantra is as basic as gravity, alas ever easy to understand but mighty difficult to practice.

Today the market started tentative and swayed between coming close to zero line and then swinging back to positive zone several times during the day. Overall the direction remains positive; however, at some point altitude sickness is bound to set in. There are certainly a section of people who have made too much too fast over the past few days and those set would certainly sell and go away. How much of an impact that would have is yet to be seen. Secondly, there are big boys reporting in the financial space over the next few days which could throw water over the ovens. Finally, the hot air balloon goes up only if the engine runs (read the FII’s pumping in money) and we certainly do not know when that engine will turn cold.

Otherwise, there is no stopping for the juggernaut pulling away stellar returns fro the year. I am just imagining that sky scraper that would be built on the solid foundation that we have built over the past 2-3 years in the corporate space. Meaning, how high can the index go when the structural bull market begins.

Sensex Kalifa – anyone.



February 06, 2012

Morning Bell...The key Indian stock indices have advanced in early minutes of trade

Indian Market
The key Indian stock indices have advanced in early minutes of trade, with the BSE Sensex and the NSE Nifty rising by ~1% each. The Nifty has strengthened its foothold above 5,300 while the Sensex has surpassed 17,700. The undertone is upbeat due to relentless inflow of overseas capital into Indian financial assets. The relief over a court ruling in the 2G scam is also partly behind the positive start today as is the upbeat US jobs report for January.
The BSE Sensex was 17,778, up 173 points over the previous close. It had earlier touched a day’s high of 17,829 and aday’s low of 17,741. It opened at 17,741.
NSE Nifty was quoting 5,374, up 48 points over the previous close.It has earlier touched a day’s high of 5,390 and a day’s low of 5,372. It opened at 5,379.

Wipro, TCS, Bajaj Auto, DLF, L&T, ICICI Bank, M&M, HUL, Hero MotoCorp, Coal India, Hindalco Inds,Sterlite Inds, were among the notable leaders in the Sensex and the Nifty.

ONGC, Tata Power, Gail India were among the notable losers in the Sensex and the Nifty.

The Mid-Cap and Small-Cap index was trading at 1%.

The gains are broad based with the Small-Cap and Mid-Cap indices keeping pace with their Large-Cap peers. The market breadth is positive. Most sectoral indices on the BSE have gained. The INDIA VIX on the NSE is marginally lower.

A lower court delivered a favourable verdict on the alleged complicity of P. Chidambaram in the 2G scam. Markets are likely to display similar relief today. Suddenly the prospects for equities seem to have brightened. FII inflows continue to be strong. The rupee too is gaining ground.

Hopes are also building on material improvement in governance and policy making. The Uttar Pradesh elections and the Union Budget will be two big events on the domestic calendar in the near term. Corporate earnings will continue to roll in for few more days.

Major Results Today:
Adani Port, Adani Power, BGR Energy, Bajaj Electricals, Dena Bank, GSK Consumer, Gujarat Industries Power, Gulf Oil, HUL, India Cements, Kesoram, MOIL, NALCO, NCC, Spicejet, Texmaco, Trent and Zydus Wellness.

Sources-:India Infoline