Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGIN

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Government spoils the show
Mon, 25 Jun Closing

Indices in the Indian equity markets continued to slide downward during the closing stages and finally closed the day in the negative. While BSE-Sensex edged lower by around 90 points, NSE-Nifty was down to the tune of around 30 points. BSE Small Cap index however bucked the trend and closed marginally higher. BSE Mid Cap on the other hand closed nearly flat. More than two stocks declined for every one that closed in the positive on the Sensex.

Major indices across Asia closed lower today whereas Europe is also trading in the red currently. The rupee was placed at Rs 56.9 to the dollar at the time of writing.

The optimism in the first half of the session was mainly on account of expectations of some strong measures by the Government to boost the economy. Although the Government did make certain announcements, it turns out the markets did not consider them to be adequate enough. The fact that there wasn't any strength on display in Asia and Europe also did not help matters.

TVS Motors, one of India's major two wheeler manufacturers, closed marginally higher today. The reason behind the interest in the counter could be attributed to reports that the company is likely to come out with a slew of technologies which will help make its vehicles more energy and thus, cost efficient. It has a target of increasing the mileage of its current two-wheelers by at least 20%. The first set of vehicles is likely to hit the roads by end of next year. Important to add that it has included hybrid technologies that will enable a two-wheeler to switch between petrol/diesel and electric power, with the aid of intelligent controllers.

Most textile stocks also positively today, perhaps in response to the upward revision in textile export target for the current financial year. It should be noted that the Government has revised the target to US$ 40.5 bn from the current US$ 38 bn. The upward revision was done in the aftermath of some sops announced in the Foreign Trade Policy. In FY12, Indian exports touched US$ 34 bn compared to US$ 26 bn in the year before. In order to reduce their dependence on traditional markets like the US and Europe, exporters are now exploring other destinations like Latin America, Russia, Japan and Africa.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

View all commentaries | Archives

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "Government spoils the show". Click here!

  
ABOUT EQUITYMASTER

Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.

PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
TRENDING TOPICS
FREE NEWSLETTERS
EQUITYMASTER SUPPORTS
  • HelpYourNGO
  • You Tube
  • Linkedin
  • Twitter
  • Telegram
  • Google Play

Copyright © Equitymaster Agora Research Private Limited.

Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap

Phone +91-9136015013

Equitymaster Agora Research Private Limited (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

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

Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com

LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

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.

Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (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, Canada or the European Union countries, 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.