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?  

Indian stock markets zoom ahead
Tue, 24 Jan 01:30 pm

Indian stock markets surged in the last two trading hours after the liquidity infusion from Reserve Bank Of India (RBI) raised hopes of the Indian economy gaining momentum. All the sectoral indices are trading in the positive with capital goods, banking, realty and metal stocks leading the pack of gainers.

The BSE-Sensex is trading up 285 points and NSE-Nifty is trading up 89 points. The BSE Mid cap and BSE Small cap indices are up by 1.34% and 0.66% respectively. The rupee is trading at 50 to the US dollar.

In a recent decision, the Reserve Bank of India (RBI) has slashed the cash reserve ratio (CRR, the share of deposits that banks hold with the Central bank) by 50 basis points to 5.5%. However, the interest rates (repo) rates have been left unchanged at 8.5% (after being raised for around 13 times between March 2010 and October 2011). The move is expected to ease liquidity and signifies a policy shift from controlling inflation to promoting growth. The cut in the CRR is expected to release around Rs 320 bn into the banking system. As per the RBI Governor, future actions will be towards lowering the CRR. RBI has also lowered the GDP growth forecast for FY12 by 0.6% to 7%. The wholesale price index (WPI) inflation target has been kept unchanged at 7% for the end of FY12.

Majority of the automobile stocks are trading in the positive with Ashok Leyland, Mahindra & Mahindra Ltd. (M&M) and Tata Motors (Telco) being the biggest gainers. However Maruti Suzuki, which has posted a dismal financial performance, is the biggest loser (down 1.6%). As per a leading financial daily, Maruti Suzuki's first diesel engine plant is likely to commission by 2HFY13. The plant, which is expected to come up in the Gurgaon facility, will have an annual capacity of 1.5 lakh engines reportedly at an investment of around Rs 15 bn. The company manufactures only petrol engines with diesel engines being supplied by the allied company, Suzuki Powertrain India. In light of the growing demand for diesel cars and Suzuki Powertrain's 2.9 lakh capacity being inadequate to service Maruti's diesel engine requirements, the waiting period for its diesel models have gone up by upto 4-5 months. Presently the shortfall is being met by a supply arrangement with Fiat India.

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 "Indian stock markets zoom ahead". Click here!

1 Responses to "Indian stock markets zoom ahead"

mohan rao perdoor

Jan 24, 2012

though to-days crr cut boost the economy may not stay long since cost and slow decision taking by govt. in most of the important mater (investment by FII) taken quickly otherwise may index move around nse 4900 to 5200

Like 
  
Equitymaster requests your view! Post a comment on "Indian stock markets zoom ahead". 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.