Union Budget will determine the fate of Indian market
Strong selling pressure witnessed in Indian stock market during the second half of January. Year 2010 started with a positive note in Indian stock market. Traders expressed huge buying interest in the beginning. Expectations were high. Everyone predicted an upward trend only. FIIs also bought Indian stocks during this time. Bombay sensitive index touched a peak of 17790 in January. But the situation changed suddenly. It happened with the Q3 result announcement by heavyweights. Some of the figures were less than expected by investors. Which weighed hard on Indian bourses. RBI policy announce was the major event during this period. Anxiety regarding this policy announcement wiped out so many points from Indian Indices. Banking and Reality stocks felt the heat. US president Barack Obama’s comment on banking sector, bank rate hike in China were the global factors which affected Indian stocks badly. In January, sensex lost 1107 points against it’s closing figure in December 2009.
Barack Obama’s comment against outsourcing came as a second blow for Indian stock market. In the last week alone FIIs sold Indian equities worth Rs. 7100 crore. Altogether corporate results were mixed. Inflation still remains a major concern for policy makers. The WPI based inflation rate in India is at 7.3 percent (In December) which is the highest in 13 months. Higher food price is the main reason for this record inflation figure. In order to contain inflation RBI hiked the CRR rate by 75 basis points to 5.75. It is believed that this move would remove the excess money from the market.
January closing rate of sensex was 16358, which is 6.34 percent down from it’s last month closing. Sensex was within the range 15982-17790 during this period. Nifty also recorded an above 6 percent decrease from it’s December closing in January. It closed well below the 5000 mark and the rate is 4882. FIIs and DIIs turned out to be net sellers. FIIs sold Indian equities worth Rs. 500.30 crore. Domestic Institutions also became net sellers in January, they sold equities worth 1311.30 crore. Midcap and smallcap stocks were down by 3 percent and 1.5 percent respectively.
In the sectoral front all sectors except consumer durables witnessed downward trend. Reality and metal stocks melted the most due to severe selling pressure. Reality index down by above nine percent against it’s December closing. Engineering and auto stocks recorded 7 percent and 6.5 percent decrease respectively.
Looking forward union budget is the major event in February. Budget will determine the direction of Indian stock market in the near future. After continuous selling pressure market shows some sort of consolidation now. RBI policy had redrawn the GDP forecast to 7.5 percent from 6 percent earlier. Above 7 percent growth rate seems to be attainable. According to RBI policy growth is the need of the hour. CRR rate hike would suck out Rs. 36,000 crore from Indian market by February end. In the union budget steps can be taken to reduce the bad effects of this rate hike. (Other rates remains the same- reverse repo, repo, and bank rate at 3.25%, 4.75%, and 6% respectively). CRR rate hike will be implemented in two phases. The first 50 bps hike will come into effect on February 13 while the next 25 bps hike will be effective from February 27.
In January Indian market witnessed a record turnover of Rs.1.92 crore. Almost all the stocks are now at lower levels. Decent growth figures will be beneficial for Indian market. Attractive levels always attract good investors and opportunities not always last long.
I am a writer. I write poetry and articles related to business and cinema. I have been writing articles for Newspapers and websites. Articles are available in the site www.pramodthomas.com
February 4th, 2010 at 8:08 am
-You can’t really put it any more straightforward than that.
February 4th, 2010 at 11:06 am
I agree with you, Thank you very much for your interest.
With Love,
Pramod.
February 12th, 2010 at 7:42 pm
I am to a great extent impressed with the article I have just read. I wish the writer of http://www.pramodthomas.com can continue to provide so much productive information and unforgettable experience to http://www.pramodthomas.com readers. There is not much to say except the following universal truth: Artificial banana tastes nothing like banana I will be back.
February 13th, 2010 at 9:54 am
Thanks you for your inspiration
March 10th, 2010 at 11:34 pm
You have tested it and writing form your personal experience or you find some information online?
March 13th, 2010 at 4:43 pm
I read about it some days ago in another blog and the main things that you mention here are very similar
March 30th, 2010 at 11:42 am
Exceptional post full of useful tips! My site is fairly new and I am having a baffling time getting my readers to leave comments. They are coming to the website but I have the feeling that “nobody wants to be first”.
March 31st, 2010 at 2:57 am
WHOClv pllpbaepffzh, [url=http://zgtqtujlfbcj.com/]zgtqtujlfbcj[/url], [link=http://nalilwiasctm.com/]nalilwiasctm[/link], http://zwqwsiqecvcu.com/
April 2nd, 2010 at 6:13 pm
Very good post, I sure am a big believer in leaving comments on websites to assist the blog creators know that they have created something worthwhile to the world wide web!
April 13th, 2010 at 8:00 pm
I find myself coming to your blog more and more often to the point where my visits are almost daily now!
May 20th, 2010 at 5:36 pm
Just write like you’re talking to your friends. And soon, they will be.
May 25th, 2010 at 7:34 pm
Hi this post was great and I think you are very competent (i hope this is the right word, I’m from germany)! Actually I study computer-science in berlin and I want to make my master-degree in your country! (to learn the language and so on). I would export some special and high-priced hardware from germany to sell it in your country but I need a market like ebay or http://dimida.de to promote this hardware (its pc stuff). Do you know some plattforms in your language/ country? I thank you!
May 26th, 2010 at 8:25 pm
Greetings im new here, i hope to contribute to this board as it has helped me a huge amount.
June 1st, 2010 at 7:29 am
Howdy there,just found your Post when i google something and wonder what web hosting do you use for your web site,the speed is more faster than my website, i really need it.will back to check it out,thank you!
June 5th, 2010 at 4:08 am
you look like a million dollars.you lood outstanding.
June 5th, 2010 at 10:58 am
Howdy, your site is on air in the radio! Good job mate. Your posts are truly great and bookmarked. Regards
June 5th, 2010 at 1:59 pm
Hi to everybody,I like your site and it looks very interesting and easy to read,really!. I am from Argentina. I love the Soccer and cannot wait till 11th June, can you?.But there is a problem camming from FIFA. It is that doesn´t choose the best teams in this planet for the World Cup which it should otherwise don´t call the World Cup a final, if you want to play football for the spirit of competition then go to the olympics games. this is exactly what the World Cup is turning to, and it su…, ire needed to beat brazil to be in and is not, jap beat lowly teams as bahrain, qatar, kuwait, to be in, is this justice I dont think so, just because you are in the World Cup it doesn´t mean that you have the quality to be in like jap can attes. Any way, I desire to watch a great final on 11th July and my favorite winner team is England,and my favorite player is Lionel Messi.Good blog and keep going.Cu!
June 5th, 2010 at 6:08 pm
I love Argentina too, but I love Brazil more
June 7th, 2010 at 1:34 am
This is a nice blog, Going On.
June 7th, 2010 at 9:13 am
you look like a million dollars.you lood outstanding.
June 8th, 2010 at 12:31 am
you look like a million dollars.you lood outstanding.
June 8th, 2010 at 7:48 am
you have a good sense of humour.
June 11th, 2010 at 11:17 am
Great level of look at, I certainly not thought like this but you’ve opened my mind!
June 17th, 2010 at 7:42 am
My friend Shirlyn told me about this blog a few weeks ago however this is the first time I’m visting. Believe it or not, it’s getting bookmarked! Yea!
June 20th, 2010 at 12:18 am
Hey there, I concur, very much agree with what you wrote and will say that I’m inspired with your statement here. I’m luck to have discovered this on the net.
July 7th, 2010 at 2:09 pm
I love your website! did you create this yourself or did you outsource it? Im looking for a blog design thats similar so thats the only reason I’m asking. Either way keep up the nice work I was impressed with your content really..
July 10th, 2010 at 9:26 am
Sorry for the huge review, but I’m really loving the new Zune, and hope this, as well as the excellent reviews some other people have written, will help you decide if it’s the right choice for you.
July 17th, 2010 at 6:12 am
Interesting blog. It would be great if you can provide more details about it. Thanks a lot!