Money Nov 30, 2012
Looks like the markets today are continuing yesterday's momentum. However, while yesterday was a superb day with the Sensex rising around 329 points to touch its 19-month high, the direction of the markets today will be guided by India's GDP numbers which are out at 11 am.
While positive comments by Moody's and investment bank Goldman Sachs has lifted sentiment, bigger concerns like a slowing economy and tepid earnings growth remain.
Most polls predict that India's GDP growth in July-September probably hit a three-year low.
The Sensex today opened 60 points higher but soon surged to over a 100 points and is currently trading at 19275 levels while the Nifty is up 27 points at 5852.Even the rupee is trading stronger today at 54.45 versus the dollar.
Finally, on Thursday, the Lok Sabha passed the anti-money laundering bill after Speaker Meira Kumar announced her decision to admit the Oppositions motion for an FDI debate under Rule 184 that entails voting. The debate on the issue will be held on 4th and 5th December in the Lok Sabha.
"This sets up the current Lok Sabha for its first trial of strength. The markets liked the thawing of the snows between the principal political parties. This will pave the way for further bills to be passed," said HDFC Securities in a report.
TCS, SBI, ICICI Bank, Tata Steel, Hero MotoCorp, ONGC, Dr Reddys Lab, Bajaj Auto, Tata Motors, Hindalco Inds, Mahindra & Mahindra are among gainers in Sensex and Nifty.
RIL, Infosys, Wipro, NTPC, Bharti Airtel, Sun Pharma, BHEL, HDFC are among losers in Sensex and Nifty.
The current rally in the market is largely fuelled by FII inflows due to stability in the global markets along with favourable currency position.
"The outlook remains optimistic at start with global cues mostly pointing upwards. The rally could well continue if the government manages to get its act together on crucial pending bills," said IIFL in a research note today.
However, market analyst Sudarshan Sukhani advises long-term investors to build on their portfolios by cashing in. He says, "This is not time to buy." He also warned investors against timing the market and going short.
Stocks in news
Cinemax 's open offer for 72.8lakh shares at is set at Rs 203.65 per share . The stock is up 3 percent. PVR Says that it has successfully acquired shares of Cinemax's Kanakia family and will enter eight new markets.
Morgan Stanley Asia sold 50 lakh shares of Tata Motors on Thursday with differential voting rights for Rs 80.50 crore through open market transactions. The stock is up 4.45 percent today.
Kingfisher Airlines pilots write to CEO Sanjay Agarwal that they are yet to get May salary as was promised payment before Diwali. The stock, however, is up 0.87 percent.
Raymond Bickson, MD of Indian Hotels has said to CNBC-TV18 that it will open its 100th hotel in Gurgaon. He says the year has been flat but they have great expectations from Q3, Q4.
Bharti Infratel will begin its roadshow for its initial public offer (IPO) today in Mumbai after getting Sebi's consent. The company is expected to price the issue between Rs 210 to Rs 250 per share and is expected to raise between Rs 4000 crore to Rs 4700 crore.
Meanwhile, a study by Hyderabad-based Indian School of Business has also found that retail equity investors in India systematically lose out to other categories of players because they sell the winning stocks too quickly and hold on to the losing stocks too long. It also found that individual retail investors in India, numbering 2.02 million - largest in the world - consistently chase a zero rate of return on their stock investments when they make decisions themselves.
More From Firstbiz Staff.