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Unfazed by the stock market volatility, leading financial institution Macquarie says 2008 could still turn out to be a great year for the Indian investors, who should stay put.

“India is now too important a market to ignore and we recommend investors to stay invested in the market. We think that 2008 has the possibility of being a great year for the Indian market,” Macquarie said in its first edition of Asia Equity Guide 2008.

The Sensex has slipped 4,000 points within a gap of two months taking global cues. Rise in crude prices, a fear of recession in the US and large-scale selling by FIIs had contributed to the fall.

“We believe that India will be in a sweet spot in 2008, with strong growth accompanied by falling interest rates. India is also a strong relative play on the global growth slowdown as it is relatively more immune than most other countries in Asia and earnings’ risk are isolated to certain sectors,” it said. Moreover, India is more isolated than other Asian countries with exports only 15 per cent of Gross Domestic Product (GDP).

Macquarie said that ahead of elections, scheduled in the first quarter of 2009, some sectors could be negatively affected by ‘election inertia’, at the same time, some sectors would benefit. “We believe that careful stock selection will make India an attractive market in which to hide from the global turmoil,” the report observed.

“We think the best play on the elections is the infrastructure and capital goods space, as the Government races to finish projects ahead of the pools. Our top picks in the country are, therefore, DLF, Reliance Communications, HDFC Ltd, Tata Steel and Reliance Industries,” it said.

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After months of mirroring the Wall Street (Indian markets going down with it), domestic markets ‘decoupled’ again this week from global markets (sadly, when the global markets were recovering). In the beginning of this year, the domestic markets were supposed to have ‘decoupled’ due to India’s high GDP growth trajectory. Continue Reading»

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Ignoring higher than expected inflation figures and on account of heavy buying and strong European cues, the Sensex closed 350 points higher for the week.

Bombay Stock Exchange’s Sensex closed at 16,371.29, up 2.22 per cent or 355.73 points.

Day’s high: 16,452.08 & Day’s low: 15,884.45.

National Stock Exchange’s Nifty ended 2.31% or 112 points higher at 4,951.55.

Day’s high: 4,970 & Day’s low : 4,796.35.

Top gainers : Tata Steel (up 9.96%), Infosys Technologies (6.54%), Wipro (6.02%), Larsen & Toubro (5.95%) and BHEL (5.25%)

Biggest losers : HDFC Bank (down 2.77%), ONGC (1.31%), HDFC (0.96%), Tata Motors (0.95%) and Reliance Communications (0.92%) .

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A majority of India’s stock fund managers see at least a 5 percent rise in the benchmark BSE index in the next three months and may invest mainly in shares in engineering and financial sectors, a Reuters poll showed. Continue Reading»

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Dalal Street will tend to remain wobbly this week owing to the weak global cues. In the three-trading days last week, the BSE Sensex settled at 14,994.83 points on Friday with a gain of over 161 points, while S&P CNX Nifty closed at 4573.95 points, down 0.90 per cent.

Asika Stock Brokers’ Research Head Paras Bodhra commented :

“Markets would be volatile, there will, however, be a bounce back in the indices but the broader trend is down. Some amount of stability could be witnessed but there would not be a run up. Because the under current is quite weak, the repeated rate cut by the Federal Reserve shows that there is a credit crunch and the global growth rate is slowing down”.

For details, please refer to this Financial Express article :
Financial Express website

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In a circular sent to all the stock exchanges of the country, Market regulator SEBI (Securities and Exchange Board of India ) has asked the bourses to do away with imposition of price bands ( circuit limit on first day of trading) in the case of non-IPO share listings in order to facilitate accurate price discovery.

Currently, price band policy on first day of commencement or recommencement of trading involves cases of merger, de-merger, amalgamation, capital reduction, scheme of arrangement, revocation of suspension, direct listing on another stock exchange while being listed on one exchange.

Following consultation with the bourses, SEBI said it has been decided that in cases of merger, demerger, amalgamation, capital reduction, scheme of arrangement, and in cases of rehabilitation packages approved by the Board of Industrial and Financial Reconstruction and in cases of Corporate Debt Restructuring (CDR) packages, “there is no need to have a price band on the first day of commencement or recommencement of trading.”

“The price band may be retained in all other cases on the first day,” SEBI said. The new policy for commencement and recommencement of trading of securities would be implemented with immediate effect, it noted.

The new policy is aimed at protecting the interests of investors in securities and promote the development of and regulate the securities market.

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