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.
Concerns cloud positives - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Aug 4, 2001

    Concerns cloud positives

    The BSE Sensex has moved up over 2% during the week backed by renewed buying interest in software companies. Meanwhile, the meteorological departmentís report on monsoons is encouraging. Nevertheless, concerns about UTIís bailout and instability in the financial sector still cast a shadow on these positives.

    It was a dazzling week for pharma companies. The Indian pharma companies have achieved yet another milestone. Dr. Reddyís, Indiaís leading pharma company, has bagged a six months exclusive marketing rights of Prozac. This is expected to garner around US$ 17 m for the pharma major and the shipment has already begun. Other majors like Ranbaxy, Cipla and Nicholas Piramal also ended on a positive note.

    Cement was the other key gainer. Good results by cement majors in the June quarter as well as news that the hike of Rs 5 per 50 Kg cement bag has already been affected in western Maharashtra, continues to spur sentiment. The latest good news is that Gujarat Ambuja saw a 16% growth (YoY) in production and around 18% growth (YoY) in despatches during July 2001. ACC has also reported a 5.3% rise in cement despatches for July 2001. As a result, major cement companies like L&T, Gujarat Ambuja, India Cement and ACC gained.

    Despite an uncertain US economy and trailing IT spending, software sector was in the limelight during the week. NIIT, Infosys, Satyam, Digital and Wipro were very active for most of the week. Probably valuations, which have come down drastically over the last one-year, coupled with the promising potential for the Indian software sector seems to have interested bargain players.

    Meanwhile, there is something to cheer for the bourses. The meteorological department has said that the country has had a normal monsoon (in fact 5% above the normal monsoon) with the timely arrival of the South West monsoon. Though some regions like Rayalseema and certain areas in Karnataka have witnessed subdued monsoon, the meteorological department expects these regions to have normal rainfall towards the end of the year. The other consolation factor is that the drought-affected regions like Rajasthan, Gujarat and Madhya Pradesh, after a prolonged dry season, have received good rainfall. Ultimately, this could turn out to be the key driver for Indian economy towards the end of the year. But this is just a hope. But in this environment market movers may prefer to wait and watch for further encouraging signs, rather than plunge headlong into the markets.

    But, the continuous tussle between the finance ministry and UTIís former chairman continues to remain a cause of concern. While both are blaming each other for the recent happening in the UTI, no one seems to be taking responsibility as a whole. Added to that the FMís decision to bail out the ailing IFCI has also cast a doubt about the Indian financial sectorís health as a whole. This has also created a lot of nervousness in the markets, which might continue to subdue sentiment in the coming weeks also.



    Equitymaster requests your view! Post a comment on "Concerns cloud positives". 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.

    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.

    Why Hasn't Warren Buffett Rung the Bell Yet? (The 5 Minute Wrapup)

    Aug 22, 2017

    It's surprising Warren Buffett hasn't warned investors about the expensive stock market? Let us know why.

    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.

    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.

    The Most Important Innovation in Finance Since Gold Coins(Vivek Kaul's Diary)

    Aug 10, 2017

    Bill connects the dots...between money and growth, real money and real resources, gold and cryptocurrencies...and between gold, cryptocurrencies, and time.

    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?

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    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!

    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 23, 2017 03:36 PM