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.
Markets: Slow but steady - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Dec 9, 2000

    Markets: Slow but steady

    The markets continued to consolidate their position during the week. The benchmark, BSE and NSE, indices rose for the second week running. The BSE was up 128 points (3.1%) and the NSE rose by 38 points (2.9%) following the previous week gains of 4.2% and 4.1% respectively.

    The markets returned to some calm waters, registering marginal but steady gains through out the week. The hospitality sector was once again in the limelight with news of high occupancy levels for the month of November. This follows the rise in room rates that were incorporated in the month of October. Further, the state controlled, Indian Tourism Development Corporation (ITDC) is to be put on the disinvestment block. This has spurred a rally in private sector hospitality counters who are expected to be leading the fray for acquiring the properties of ITDC.

    The aluminium and copper counters are also showing buoyancy. This is largely due to the respective commodities gaining ground on the London Metal Exchange (LME). Aluminium and copper prices have increased by $137 / MT and $115 / MT respectively over the past three weeks.

    Towards the end of the week the Telecom and oil sector government companies also rose sharply on the news of probable disinvestments. VSNL was up sharply on the announcement that the Government will divest 15% stake in favour of a strategic investor. It will also hand over the management control, which boosted the sentiment with respect to the disinvestment programme. Consequently, the feel good factor overflowed to other sectors, primarily the energy sector.

    The old economy stocks continued to be the flavour of the week. However, activity was constrained to select stocks, which were largely driven by stock specific news. New economy is still in the doldrums with markets apprehensive of the current valuations. However, these companies earnings are for real and the sector offers value-buying opportunities.

    Markets, during the latter half of December, witness an outflow of funds by the FIIs. Such trends may raise doubts on the genuineness of the current rally. A cautious approach by retail investors may be a more prudent strategy, as the rally could be to create an exit route for the institutional investors.

    The badla and ALBM rates have stabilized over the past two weeks after rising persistently for a month. This indicates that the growth in outstanding positions has slowed down. There is a shift towards delivery-based trades. Opinion of the traders indicates that the deliveries are mainly in the old economy counters. This augurs well for the market as it exhibits a longish term positive sentiment on equities. Traders are also of the opinion that the build up in deliveries could be to take advantage of the customary January bull run.

    In either case the retail investor could do well by keeping a watchful eye. However, positive news seems to be entering the market with the ongoing restructuring of industries and Government taking initiatives on disinvestments. Therefore, is the rally for real?

     

     

    Equitymaster requests your view! Post a comment on "Markets: Slow but steady". 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!

    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 23, 2017 03:36 PM

    MARKET STATS