X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Its budget time... - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Feb 24, 2001

    Its budget time...

    During the week the BSE 30 Sensex declined by 4.8 percent and the NSE Nifty declined by 4.4 percent. With the NASDAQ touching its 2 year lows, Indian TMT counters shivered. Almost all key pivotals are hovering near their 52-week lows. Fears of a slowdown in consumer and corporate spending on technology have put a growth rates under suspicion for the sector.

    Telecom equipment stocks are also facing the brunt as it is expected that they will cut down their network expansion spends. The negative sentiment was reflected in the domestic stocks as well. Banking was another key loser. This could be mainly due to profit booking entering these counters. The sector had run up significantly in the recent past following the RBI’s interest rate cut and anticipated M&A activity.

    The sell off also engulfed the old economy counters. Market circles opined that operators went for profit booking on Friday ahead of the upcoming budget.

    In contrast the public sector stocks had a relatively favourable week. However, with the sharp slide on the last trading day these stocks also declined. The Government sent strong signals to the investing community regarding its disinvestment intentions. The Government has sold Bharat Aluminium (Balco) to the Indian copper major, Sterlite Industries.

    However, the last is yet to be heard on Balco’s disinvestment, with the opposition up in arms against the government’s decision. Despite this, the disinvestment does spell out the government’s intention to get out of running businesses and rather concentrate on running the affairs of the state. The decision thus sparked off heightened buying in another aluminium PSU, National Aluminium Company, and Hindustan Zinc.

    On Friday Night, the NASDAQ was down over 4% intra-day, but recovered towards the end to close up 0.8%. This was despite earnings warning by Motorola and Sun Microsystems. There is anticipation in the air that the US Fed might cut interest rates soon. But naysayers are of the opinion that with inflation rate picking up, the US Fed might not cut rates sharply.

    Monday marks the beginning of the Budget week. With the Economic Survey of India, 2001 stating that the performance of infrastructure has been mixed and re-iterating the government’s resolve to divest and push forward power sector reforms, the utilities and PSUs may continue strong showing. Some buying may also come in the tech stocks owing to the NASDAQ recovery.

    But the final outcome for the next week will be determined by Mr. Yashwant Sinha’s Budget 2002. So, all eyes on the budget

     

     

    Equitymaster requests your view! Post a comment on "Its budget time...". Click here!

      
     

    More Views on News

    How to Ride Alongside India's Best Fund Managers (The 5 Minute Wrapup)

    Jun 10, 2017

    Forty Indian investing gurus, as worthy of imitation as the legendary Peter Lynch, can help you get rich in the stock market.

    You've Heard of Timeless Books... Ever Heard of Timeless Stocks? (The 5 Minute Wrapup)

    Aug 19, 2017

    Ever heard of Lindy Effect? Find out how you can use it to pick timeless stocks.

    Why NOW Is the WORST Time for Index Investing (The 5 Minute Wrapup)

    Aug 18, 2017

    Buying the index now will hardly help make money in stocks even in ten years.

    Trump Takes a Beating (Vivek Kaul's Diary)

    Aug 18, 2017

    Donald J Trump, a wrasslin' fan, took a 'Holy Sh*t!' blow on Tuesday.

    How To Read Your Mutual Fund Account Statement Correctly (Outside View)

    Aug 17, 2017

    PersonalFN simplifies the mutual fund account statement for you.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    S&P BSE SENSEX


    Aug 18, 2017 (Close)

    MARKET STATS