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.
Markets: A quick recap - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • May 7, 2007

    Markets: A quick recap

    With a large part of the March quarter result season already behind us, and the flagbearers (most of them) of India Inc announcing 'as expected' results, with not much activity brewing in the FII space, and the with the RBI hanging on with its rate hike campaign, markets have a lot to look for in terms of the 'trigger' that shall take the benchmark indices forward from here on.

    As a matter of fact, the Foreign Institutional Investors (FII) community has invested US$ 2.9 bn in Indian equities in this calender year so far (US$ 4.5 bn in the same period in 2006). And the monies have flown in to large caps and mid caps alike as, during the first four months of this year, there has been nothing much to choose from among these categories. However, the mid-February to mid-March period was more of a catch-up phase as the markets were jittered first by the 'unenthusing' Union Budget and then by global meltdown led by China and a host of other Asian markets.

    The RBI's interest rate hikes added fuel to fire, with the central bank, in its latest meeting, deciding to pause a bit before taking another go at inflation (which has been uncomfortably above the 5.5% mark, largely on account of supply side factors). In doing so (pausing), the Indian central bank has toed the line of its US counterpart, the Federal Reserve, which has been on a 'pause mode' for quite some time now as it continues to take note of the inflation in the world's richest democracy.

    With the US Fed meeting this Wednesday to decide (or not) whether to tinker with the short-term interest rates or not, and with some of the Indian corporate heavyweights yet to announce their results for the March quarter, market participants will have a lot to chew on over the next few days. Deliberations on what Dr. Reddy (the Reserve Bank of India (RBI) governor) will do if inflation does not ease off will also keep them (the participants) busy.

    In the meanwhile, with stock prices increasingly being dictated by the quality of results that companies are coming out with, it should be pertinent to add that a quarter or two's performance should not be given undue weightage. While for some companies, it might truly reflect a need for revision in expectations, for others, it might just be a temporary blip, either positive or negative. The key to successful investing is to zero in on few key value drivers and tracking their movement. It is important not to get lost in the huge mountain of numbers that one is exposed to



    Equitymaster requests your view! Post a comment on "Markets: A quick recap". 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.

    Why Shopping Online This Festive Season Makes Better Sense (Outside View)

    Aug 24, 2017

    Online shopping if done sensibly can help you save money and carries many other advantages.

    Mr Trump Has Been Broken (Vivek Kaul's Diary)

    Aug 24, 2017

    Kelly, Mattis, McMaster, Cohn, and Mnuchin are in charge. But these Pentagon bureaucrats and Wall Street hustlers may be worse than a loose-cannon president.

    Were You Lured By Mr Market's Bait? (The 5 Minute Wrapup)

    Aug 23, 2017

    Mr Market lured investors into believing they'd bitten into a crash. Did you take the bait?

    Deep State First (Vivek Kaul's Diary)

    Aug 23, 2017

    Nowhere was the darkness deeper than in the nation's capital. There, no light shone. No flicker of awareness...observation...learning...or reflection appeared.

    More Views on News

    Most Popular

    This Small Cap Can Drive Chinese Players Out of India (and Make a Fortune in the Process)(The 5 Minute Wrapup)

    Aug 17, 2017

    A small-cap Indian company with high-return potential and blue-chip-like stability is set to supplant the Chinese players in this niche segment.

    Dear PM Modi, India is Already Land of Self-Employed, and It Ain't Working(Vivek Kaul's Diary)

    Aug 21, 2017

    Most Indians who cannot find jobs, look at becoming self-employed.

    It's the Best Time to Buy IT Stocks(Daily Profit Hunter)

    Aug 16, 2017

    The IT Sector could be in an uptrend till February 2019. Are you prepared to ride the trend?

    5 Steps To Become Financially Independent(Outside View)

    Aug 16, 2017

    Ensure your financial Independence, and pledge to start the journey towards financial freedom today!

    Think Twice Before You Keep Money In A Savings Bank Account(Outside View)

    Aug 22, 2017

    Post demonetisation, a cut in bank savings deposits rates was in the offing.

    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


    Aug 24, 2017 01:04 PM