what a way to end a year

                   SENSEX today up by 120.99 points, end at 17,464.81 and witnessed above 17,500 in the day. On the last day of 2009 and on the day of F&O expiry, the market opens on a highly positive note. Earlier, the US markets ended flat with small gains. Asia is trading quiet but in the green. European markets were in green.The Indian market ended the last trading day of 2009 in style by making a new 19-month high.India was among the top four best performing markets in the world. Returns from Indian market in 2009 for Sensex  was 80%.

                  All the sectoral indices were in  green except FMCG and health care. Consumer goods, oil and gas are the major gainers today among sectoral indices.  Central Bank of India up with 10.95%,  National Aluminium Company Ltd. up with  7.29%, Shriram Transport Finance Company Ltd. up with 6.92% , Videocon Industries Ltd. up with 5.98% are the major gainer today. Tata Chemicals Ltd. down by 3.20% ,  Sintex Industries Ltd. down by 2.97% are some of the losers today.

no show at dalal street

                      Sensex today down with 0.33% , ended at 17,343.82 .The market opens on a flat and a very quiet note. Earlier, the US markets ended flat after a day of lackluster trade and european markets opened in red.by the end of the day , sensex was down by 57.74 .

                     Sectoral indices Auto, bankex, consumer durable ,realty were in green. Metal,consumer good were the major loser.Oracle Financial Services Software Ltd. up by 4.64%, Sintex Industries Ltd. up by 4.48% , Indian Hotels Company Ltd. up by 4.23%,Tata Chemicals Ltd. up by 3.47% are the major gainers.  Max India Ltd. down by  2.89%, PTC India Ltd. down by  2.64%  are some of the losers today.

 

health care sector can get battered

                             Some pharmaceutical stocks were under pressure for quite some time.And with National Pharmaceutical Pricing Authority (NPPA) has said that top drug companies have to pay Rs 2,100 crore for overcharging, of which Rs 1,500 crore has to be paid by pharmaceutical major Cipla alone. This is a major blow to health care sector.This is going to impact their future earnings as well which is negative for the stock and impact growth so it will command low valuations and we could see reasonable fall into these stocks.

                                 Cipla Ltd. , Dr. Reddy&Laboratories Ltd. are two pharma stocks which are going to get hit hard. Shares in Ranbaxy Laboratories fell as much as 4 per cent on Tuesday morning on news that the US  Food and Drug Administration (FDA) had warned a US unit about violations of good manufacturing practices. GlaxoSmithKline Pharmaceuticals Ltd. ,  Glenmark Pharmaceuticals Ltd.,Sun Pharmaceutical Industries Ltd.,Pfizer Ltd. are the  other health care sector stocks that will be battered.

                         Particularly in the pharma sector ,we cannot witness massive growth. Anything adverse , will take a substantial period of time to recover.

sensex up by 40.95 , ended at 17,401.56

                BSE sensex opens on a reasonably strong note despite flat global cues. Earlier, the US markets ended positive with the Dow up 27 points. Asia is trading subdued. It was a good day of trade for the market that closed in the positive today. Sensex closed at 17395, up 34 points (provisional) and Nifty at 5186, up 7 points (provisional) from the previous close.It was a good day of trade after an extended weekend and market ended in the positive with modest gains. Nifty crossed the important 5200 level but shed some gains to profit booking. Asian markets closed firm while European markets were flat. Sensex shut shop at 17401, up 40 points and Nifty at 5187, up 9 points from the previous close.

                  Apollo Hospitals Enterprise Ltd. up by 11.86% , Ispat Industries Ltd. up by 7.75%, Castrol India Ltd. up by 6.19% , Reliance Power Ltd. up by 4.94%, Sintex Industries Ltd. up by 4.81% are the major gainers today.Except BSE-Healthcare , all sectoral indices did well. Dr. Reddy&Laboratories Ltd. down by 3.34%, cipla ltd. down by 3.04% are tha major losers in this sector. Pharma stocks may tumble for some more time.

among banking stocks, indian bank can make difference

                            South India based  Indian bank is one of the oldest bank in india with market capitalisation Rs 7,473.70 crs. Total assets stands at Rs 84,121.74 crs which is  good fundamental and net profit with Rs 1,245.32.   Last traded price was at Rs 173.90. EPS of this stock at Rs 28.98 and PE at 6.00 which is good technical call. Highest price for last 52 week stands at Rs195.90.

                                  Global Business of Indian  Bank crossed Rs. 1,00,000 crore mark to Rs.1,01,274 crore, registering a growth of 32.22%. Total Deposits grew by Rs. 13,955 crore to Rs.61,046 crore, a growth of 29.63% for the year 2007-08.Gross Advances were at Rs.40,228 crore registering an increase of Rs.10,726 crore (36.35%) as on 31.03.2008. Overall Credit Deposit ratio was at 66.96%.The Bank’s Operating profit increased to Rs. 1659.30 crore as against Rs. 1358.59 crore for 2006-07, a growth of 22.13%.

                           The kind of momentum it has for last couple of years has been remarkable.This stock can be hold , with a target  of Rs 200.

started sluggishly , ended with a positive note

                    Initially ,there was no show in dalal street but picked up after the second half and day ended with 129.50  points up. World market’s strong  rally boosted  the Indian markets, along with the recovery in global economy after  the financial crisis across the world.

               All the sectoral indices today ended in green.  Metals, Auto , consumers durable were the sectors ended with more than 1% up. Hindustan construction up by 7.55%, Shriram Transport Finance Company Ltd up by 6.73%  , Fortis Healthcare Ltd. up by 6.28% ,Gujarat NRE Coke Ltd. up by 5.83% , IFCI Ltd. up by 4.78% are the major gainers today.

                    FIIs(Foreign institutional investments) flight from Indian market last year was a major blow . This year ,they took a U-turn and poured Rs 80,000 crs in domestic markets.The FII investment of Rs 80,500 crore in 2009 is the highest ever inflow in the country in rupee terms in a single year and comes a year after they pulled out over Rs 50,000 crore. FII inflow so far this year has broken the previous high of Rs 71,486 crore parked by foreign fund houses in domestic equities in 2007. This shows  the confidence of FIIs in Indian markets and as a  positive signal which will boost the market next year.

Cheer in dalal street as BSE surge by 539.11

                       Sensex today up by 3.23%, which is highest close in the past couple of months.Global market’s up trend boosted Indian markets. US markets closed with positive note with   Nasdaq up by 0.67%, Dow Jones Ind. Avg. up by 0.49%  , S&p 500 witness a new high at 1,118.02 up by 0.36%. Even the asian markets are looking strong with  Straits Times up by  0.63%, Hang Seng up by 1.12%, SSE Composite Index (Shanghai) up by  0.76%,  Nikkei 225 up by 1.91%.

                           All the sectoral indices witnessed  an up trend. BSE-bankex  , BSE-cgs, BSE-metal, BSE- oil and  gas are the major beneficiaries of today’s rally. Hindalco industries up by 7.77%,  ntpc up by 6.96%, gujarat NRE coke up by 5.96%, praj. industries up by 5.85%, century textiles up by 5.41% are major gainers today. Among banks ICICI up by 4.30%, SBI up by 2.00%,  Axis bank ltd. up by 1.66% were some of the gainers today.

                   Along with  strong global cues,  the  mid-year review of the economy of India ,  predicted that GDP growth could top 7.75% during the fiscal to March 2010 has accelerated  the present rally.

sensex up by 90.80 points , with strong global cues

                 Market today saw a bit of relief  today after two days in red,because of strong global cues.  Earlier, the US markets ended on a positive note with nasdaq closing at 15-months high up by 25.97 points. Even the European markets opened in green and are up moderately.

                Moderate gains are manifested in all sectoral indices except BSE- it and BSE _hcs (heath care sector) . Banks , metals , psu are the major gainers today. Steel authority of india ltd. up by 6.47 % , REI agro ltd. up by 5.97% , opto circiuts ltd up by 5.07%  were some of the gainers today. Lupin ltd. down by  3.49% , piramal healthcare ltd. down by 3.14% , ultratech cement down by 2.06% were some of the loser today.

              Among banks  Axis bank up with 1.34 %,  ICICI up by 1.95%, Central bank of india up by 4.87%. These stocks can be invested.

                     Today , it is manifested that there is a mixed result in health care sector. Dr Reddys labs down by 0.98%, apollo hospitals down by 1.66%, glaxosmithkline pharma down by 1.64%, piramal healthcare ltd. down by 3.14% .  Bilcare ltd. up by 5.48% , opto circuits india up by 5.07%, orchid chem and pharma up by 3.74%, glemark pharma up by 4.16%. This sector can be looked forward for investments.

lackluster in dalal street

                              Sensex today down by 118.63 closed at 16,601.20. Except Bse-bankex , Bse-cds , Bse-oil and gas , all the sectoral indices closed in red. Ackruti city up by 6.21%, REI agro ltd. up by 4.89%, Zee entertainment enterprises ltd. up by 4.17%, IVRCL infra and projects ltd. up by 3.55%, Apollo hospitals up by 2.98% are some of the major gainers today. Bajaj holdings and investment ltd. down by 4.27%, Esser oil ltd. down by 4.27%,national aluminiun company ltd. down by 4.10%, hindalco industries ltd. down by 4.02%,cipla down by 3.62% are some of  the major losers in BSE.  European markets opened in green could not help Indian markets to recover for volatility.

                 Weakness will prevail in the market for some more time, banking and reality sectors will feel the pressure. Better to stay away from market, most probably till the monetary policy is announced by the RBI.

stay away from banking stocks for sometime

                       For quite some time ,we have seen a down trend in the banking sector. This is all because of the raising  inflation  which is at 4.78% now, and food inflation which is  11 years   high at 19.71%.  And ,the centre’s  fiscal deficit  at 6.8%(the highest in last 17 years)  and revenue deficit at 4.8% , for the year 2009-10 ,  which completely distorted the targets  under fiscal responsiblity and budgetary management act(FRBM).

                In the context of inflationary pressure, which is a major concern right now , for Apex bank and the Ministry of finance, there is a prediction that a monetary policy is round the corner , which will  increase  the interest rates of  banks , along with CRR   (cash reserve ratio) to contain money from the system.

                      Budget of central government  which will be presented on the last day of February , will have some steps to contain fiscal deficit (at 6.8% )which is high in the last 17 years , will affect the banking system. Ministry of Finance and GOI  (Government of  India) are contemplating to reduce the fiscal deficit  from  Rs   5,38,000 crores  in 2009-10  to  Rs 3,65,000 crores in 2010-11.  Increase in fiscal deficit means increase in the borrowings(both external and internal).  Once there is increase in the borrowings , there will be a burden on the exchequer not only to repay the principle debt but also it’s interest rate. Banks may bare  the  brunt by the measures takes to contain  fiscal deficit.

                         As far as revenue deficit (4.8% ) is  concerned, govt. need to raise  money from different sources ( including banking system)  for the capital expenditure.  The tax-GDP ratio is slated to drop from 11.5% in 2008-09 to 10.94% in 2009-10.

                   From the above macro economic factors, it is quite certain that the banking stocks will get battered for certain period of time . Can invest in  some banking stock with good fundamentals , at the lower prices.