Friday, 20 September 2013

Morning Bells (20 Sept 13)

Good Morning Friends.

Its really very difficult to understand the people in this world as we are living in such a world where Artificial Lemon flavour is used for welcome drink and Real Lemon is used in finger bowl.

Ganapati Bappa Morya – Dollar is weakening and Rupee is gaining, Rupee now at one month high and trading at 61.77 against its previous close of 63.37.

It’s been a pleasant surprise for equity markets across the globe after Fed Chairman Ben Bernanke refrained from reducing its massive economic stimulus. If you look at the series of action you will find it was a sure outcome. Have look to RBI governor Subbarao’s exit, he didn’t take risk and leave the challenges for new Governor, you can consider same in case of FOMC.

And one great catch was from Rahul Singh – as per Rahul, Obama need EU’s support against Syria tragedy so they can’t disappoint EU market right now.

Well this outcome is more beneficial for India as compared to other global market and that was the reason BSE Sensex registered it biggest single day gains in absolute e terms since May 2009. 

So in the sequence, first reason was FOMC, second Rupee gained and third and another major reason for rally specially in rate-sensitives like banks, auto and realty stocks with hopes that the emergency measures put in by the Reserve Bank of India and the finance ministry may be rolled back, specially I have mentioned 2 days back about liquidity, current measures which are curbing liquidity. If it is then rate sensitive to rally for one more session.

Another good news for banking sector is - Financial Services Secretary Rajiv Takru said that very soon now, now that markets are more or less, I see certain amount of confidence in the market and things appear to be stabilising. So anytime now (decision on capital infusion) within the next week, 10 days or fortnight. The government has earmarked Rs 14,000 crore for capital infusion in the public sector banks during the current fiscal.

Also I feel that now after today’s RBI announcement some of the completely beaten down sectors, investment related sectors can start to rally.
Finally Nifty break physiological level of 6010. Now what next is big question everybody has in mind. Well I can just say for time being there is no point talking about fundamentals when a strong gush of liquidity sweeps the market.
Now all eye on today’s RBI policy outcome, if RBI gives some sign of relief then Nifty to move higher from here but it wouldn’t be like y’days rally after FOMC outcome.

MG’s Nifty trading range –
R - 6142 - 6180 - 6230
S - 6045 - 5780

Raghuram Rajan's maiden RBI monetary policy on September 20 will be closely watched by investors.

(Stock that can see some good moves either side)

Tata Steel –
The board of Tata Steel has appointed Mr. T V Narendran as MD- Designate, India and South East Asia and has inducted him as Additional Director on the Board. On reaching superannuation on 31 October 2013, Mr. H M Nerurkar MD Tata Steel India and South East Asia will step down from the Board of Tata Steel and will be succeeded by Mr. T V Narendran w.e.f. 1 November 2013.

According to reports, Reliance and BP ended on positive note with the regulator over fields worth $10 bn, after meeting with the top brass of the oil ministry.

"The meeting with senior ministry officials of the ministry of petroleum and natural gas is positive step to resolve long drawn issues in the KG-D6 block," companies reportedly said in a joint statement.

Petroleum Secretary Vivek Rae Rae said that the government wanted to resolve matter  so that gas could be produced quickly.

"We would like to resolve them as quickly as possible instead of importing gas at $14 (per unit)," he said. "

Keep eye on – Wipro, Rcom, Airtel, Hexaware, Jain Irrigation – all are expected to give good returns in view of short to mid term.

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