Home
Account

Purchase

Renew
Product

Product Tour

Plan Comparison

Past Returns

Pricing
Services

Fee-based Advisory

Wealth Creation
Help

Reports

FAQs


Login	!	!

Forgot Password?

See

Money Maker

Video

English | Gujarati

News Analysis


03/02/2012
Many high net-worth individuals concerned about market in early January 2012 wondered how Indian stock market would be this year? Our internal analysis then suggested that consistent levels of Sensex closing above 16,545 and Nifty above 4,969 would trigger buying spree despite bearish trend. Not ready to believe but still came true with overwhelming upwards movement! FII RUSH - In 2011 calendar year, FII sold over Rs.3,400 Cr. of equities but new year began with much awaited return of investment in the tune of over Rs.15,000 Cr. just in month of January 2012. This has essentially moved Indian market from moderately sold to overbought market in no time. The FII investment came with perfect timing in view of the following three important events: a) Rupee foreign exchange rate of above 53 to a US dollar b) No practical intervening of RBI to protect exchange rate c) NRI visit season All these had partly fuelled the flow of FII money and such a strong influx of money absolutely surprised retailers and many investors alike. Such a strong and swift market movement where Sensex moving 13% above its low from December 20, 2011 till January 2012 end has wiped out over half of nearly 25% loss made in year 2011. MARKET OUTLOOK - Market is excessively exuberant and overbought and has seen a huge run up on many large cap and first-grade scrips. You look up any sector - capital goods, metals, realty, auto, infrastructure, finance, textile, transport,... out of sheer fear of losing opportunity (call it missing the boat), even second-rung stocks are moving up with no reciprocal fundamental support. To an extent this reminds me of early 2008 time and this is where investors need to be extremely selective and careful of what they buy and rejoice or regret. In last Indian Reserve Bank policy meet, it already acted on infusing the liquidity by reducing Cash Reserve Ratio requirements of the banks. Pending assembly elections of five states in India, upcoming Indian fiscal union budget, expected rate cut from Reserve Bank of India, targeted introduction of direct tax code and resolution of Europe problem during March (and beyond) subject to austerity acceptance by not only Greek politicians but also Greek citizens are various factors determining global market movement in coming months. Mihir Sandesara - www.money-maker.co.in


Source : MySmartStocks.com