Tips for those who intend to invest in NSE and BSE market

Today, everyone wants to make some extra money. And, when there are a lot of opportunities, right at your doorstep, it becomes even more alluring. The best thing is that you don’t need to invest huge amounts of money; you just need to be well informed. Out of all the money making opportunities available, the stock market is the best. And while it is pretty unpredictable, it has, in recent times, given its investors various reasons to celebrate. Therefore, prudence suggests that now is the perfect time to invest in the NSE and BSE market. 

However, there are some tips that one needs to follow before investing in the stock market. The first and the most important tip, is to follow affairs of NSE and BSE market and monitor the updates regularly. Not only will this provide you with a better understanding of the market and its changing trends, it will also help you understand the crucial aspects such as which sector is delivering positive results, which companies are basking in gains etc. All this becomes easy, as you can have a quick view of the live stock market, at the click of a mouse.

The smartest move is to gather as much information as you can about the stock that you are planning to buy. The most crucial information that one must extract is the changes in the movement of stock prices, according to the market trends, over a certain period of time. One should also conduct intensive research about the past and present performance of the company. Further, one should track the growth record of the company based on the pictures presented by BSE live, share market live and various other factors.

Now, the most crucial tip is not to panic over small losses, as profit-loss is the part and parcel of the stock market game. The wise thing to do is to understand the very core of the market and its functioning by observing the performance of NSE and BSE market regularly. Slowly and steadily, experience will teach you maintain balance between profit and losses and also make profitable deals out of them, more often than not.
So, the crux of this game is that if you are a smart and well-informed investor, you can mint a great deal of money from stock market trading.

Author Bio:
The author is an expert in financial markets and offers valuable tips on the stock market. For more information on investing in NSE & BSE visit http://www.nsebse.com

Read More: http://www.articlesbook.com/tips-for-those-who-intend-to-invest-in-nse-and-bse-market/ 

Online Share Trading System

Today we possess scores of civilians from different professions whom swear via online trading. Not alone is online share trading a great distance towards incur a number of additions income, but a number of civilians also get a thrill from endeavoring towards speculate the stock market.

For those of you whom are not familiar with the online share trading procedure, we shall explain it as well as grant you a number of tips onto how you can activate trading online.

How to learn share trading online:

The former pace towards being successful at online share trading is towards spend moment researching the market. Any corporation that you get embroiled within lacks experience of your market and what needs towards be done within order towards succeed within it, online share trading is none different, you possess towards invest within your education, whether this processes investing moment, finance or both. Constantly be knowledge and evolving and be rehearsed towards adapt as situations change.

Develop a System of Online Share Trading

There is none ideal system that always victories, but every successful online share traders possess a number of system that they consume towards determine whether towards invest within certain shares or not and when towards sell. You should profession onto designing a system that works for you and stick towards it even whether there are occasionally failures. The system you grow should predetermined limits of when you shall cut your defeats and how much risk and loss you are rehearsed towards agree ahead of marketing out.

Being successful at online share trading processes that you should constantly be knowledge and evolving and investing within your education and personal development. You should also hear towards be patient and see the big film so that specified defeats do not give away you making a long term profit and so that you alone agree the greatest trades. Develop a system that determines when you buy and sell and be disciplined within holding towards this system.

What is online share trading all about?

In the old days, share trading would occur at the stock exchange. It embroiled the exchange of share licenses and lots of paperwork. However, with the dematerialization of shares, the shares are already held within electronic form.  Today it's possible towards sell within shares without having towards go towards the stock markets. One can sell within shares – that is, site an order towards buy or sell shares – either across a dealer or they can do it themselves across online share trading portals.

The advantage of online share trading is that you need not handle papers or licenses as the transaction occurs online and the shares are held electronically. You can sell shares from anywhere and at anytime. All you need to do is towards site an order towards buy or sell shares at a particular value.

What are the prerequisites for online share trading?

In order towards sell within shares online, you need towards sign up with a dealer whom bids an online trading platform. You shall possess towards design a trading and Demat fund and relate it towards a bank account. There are a number of musicians whom bid everybody these below one roof. To sell online, you shall need an internet connection.

What are the benefits of online share trading?

• The simplicity of buying and marketing shares is the extreme benefit of online trading. You can sell from anywhere. All you need is an internet connection.
• The online brokerage shall produce an announcement for everybody your transactions providing you a confirmation of your transactions.
• The dividends and bonus shares declared get credited towards your fund directly.
• You can activate trading with low sizes of money.

What are the dos and don'ts of online share trading?

• Have a trading strategy within mind and Endeavour towards diversify your investments as far as possible.
• Do not rob rash decisions onto stocks. Analyze the companies you mean towards invest within and audit their beyond tail record.
• Stay updated onto the stocks you hold within your portfolio.

Gold Appears To Be Range Bound in the Days to Come But Silver May Be Sky Rocketing

Gold is steady in dollars and pounds but has risen again in euros as the dollar has fallen in world markets. Gold is being supported by renewed concerns of contagion in euro zone debt markets and the risk that tensions in the Korean peninsula will escalate into a war. The hesitant risk appetite of recent days has dissipated again on these concerns. This is seeing falls in equity markets internationally and gold being supported particularly in euro terms.

Euro zone peripheral sovereign bonds are little changed, with yields near record highs since joining the euro. There are reports that Portugal is being pushed towards a Ireland style bailout package. The Portuguese government said that reports it was being strong-armed into accepting a bailout, were untrue. The Spanish prime minister warned short sellers of Madrid's debt that they were "mistaken" and ruled out the need for any bailout. This is very reminiscent of the protestations from Dublin by the Irish Prime Minister and Finance Minister some weeks ago.

SILVER 

     It appears that "poor man's gold" silver will reach over $32 to $35/oz in 2011. Given the favorable supply and demand equation and the significant increase in investment demand this seems likely and may happen early in 2011.

Silver, unlike gold, remains well below its nominal high of just over $50/oz in 1980. Hedge funds and investors with knowledge of the technicals are targeting this level and will likely continue buying and accumulating until the price level has been reached. Then, many may sell, take profits and/or reduce allocations.

Silver is in effect playing catch up with gold. It remains undervalued versus gold on a historical basis. The gold/silver ratio remains favorable to silver at 50.25 ($1,367/oz divided by $27.20/oz) and the ratio is falling.

Silver could be the surprise out performer in 2011 as it was in 2010. Silver's industrial uses should mean that the gold/silver ratio will likely gradually regress to the average in the last 100 hundred years - around 45:1. If the tiny silver market was to see real funds enter it, the ratio could return closer to the historical average of 15:1. This occurred as recently as in 1968 and in 1980 and this time around could result in silver
surpassing its 1980 nominal high at $50/oz.

Silver reached $50/oz briefly in 1980 when just one billionaire family, the Hunts (one of a handful of billionaires in the 1970s) attempted to corner the silver market causing the price to surge (in conjunction with many investors seeking to hedge themselves from the stagflation of the 1970s). Today there are hundreds of billionaires and hedge funds throughout the world some of whom may be tempted to squeeze the large concentrated short positions of JP Morgan in particular. JP Morgan is now facing lawsuits and being sued for manipulation and suppression of silver prices.

Silver is priced at some $27.20/oz today. The average nominal price of silver in 1979 and 1980 was $21.80/oz and $16.39/oz respectively. In today's dollars and adjusted for inflation (government CPI) that would equate to an inflation adjusted average price of some $60/oz and $44/oz. It is for this reason that we believe silver will be valued at over $50/oz in the next 2 to 3 years.

Silver remains undervalued vis-a-vis gold and remains a contrarians play with little or no media coverage and few retail investors having any allocation to silver whatsoever. A close above $28.50/oz could see silver quickly rise to $30 per ounce.

MECHANISM OF DERIVATIVES BY MANSUKH DEC 2010

Derivatives, a most influential part of the capital market is considered as a security whose price is dependent upon or derived from one or more underlying assets. The derivative itself is merely a contract between two or more parties. Its value is determined by fluctuations in the underlying asset. The most common underlying assets include stocks, bonds, commodities, currencies, interest rates and market indexes. Most derivatives are characterized by high leverage. Derivatives are generally used as an instrument to hedge risk, but can also be used for speculative purposes. For example, an India investor purchasing shares of an American company off of an American exchange (using U.S. dollars to do so) would be exposed to exchange-rate risk while holding that stock. To hedge this risk, the investor could purchase currency futures to lock in a specified exchange rate for the future stock sale and currency conversion back into Rupees.

Underlying Assets in Derivatives
Derivatives consists of some underlying instruments like Futures contracts,   
Forward contracts, Options and Swaps are the most common types of derivatives. Derivatives are contracts and can be used as an underlying asset. There are even derivatives based on weather data, such as the amount of rain or the number of sunny days in a particular region.

Future Contracts: Futures contract mean a contractual agreement, generally made on the trading floor of a futures exchange, to buy or sell a particular commodity or financial instrument at a pre-determined price in the future. Futures contracts detail the quality and quantity of the underlying asset; they are standardized to facilitate trading on a futures exchange. Some futures contracts may call for physical delivery of the asset, while others are settled in cash. Futures contracts can be used either to hedge or to speculate on the price movement of the underlying asset.

Forward Contracts:  A forward contract is an agreement between two counterparties - a buyer and seller. The buyer agrees to buy an underlying asset from the other party (the seller). The delivery of the asset occurs at a later time, but the price is determined at the time of purchase.

Options Contracts:  An option is a contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specific price on or before a certain date. An option, just like a stock or bond, is a security. It is also a binding contract with strictly defined terms and properties. One options contract may represents certain number of shares for a particular underlying stock. The quoted price of an option is per share. Option can be used for speculation or Hedging purpose, Speculation is as betting on the movement of a security and on Hedging is used to insure your investments against a downturn.

Futures vs Options
The primary difference between options and futures is that options give the holder the right to buy or sell the underlying asset at expiration, while the holder of a futures contract is obligated to fulfill the terms of his/her contract. In real life, the actual delivery rate of the underlying goods specified in futures contracts is very low. This is a result of the fact that the hedging or speculating benefits of the contracts can be had largely without actually holding the contract until expiry and delivering the good(s). For example, if you were long in a futures contract, you could go short in the same type of contract to offset your position. This serves to exit your position much like selling a stock in the equity markets would close a trade.

Conclusion: Both Futures and Options have been derived from any particular underlying stock and can be used either for raising money or protecting our investment from any probable risks. Hence we should use these instruments according to our need and investment norms. However, speculation is the territory in which the big money is made and lost. The use of options in this manner is the reason options have the reputation of being risky. This is because when you use an option contract you have to be correct in determining not only the direction of the stock's movement, but also the magnitude and the timing of this movement. To succeed, you must correctly predict whether a stock will go up or down, and you have to be right about how much the price will change as well as the time frame it will take for all this to happen. The combinations of these factors means the odds are stacked against you. That's why we need to understand more about options like type and use of it, so we will use our next series of stock market session to explain more about options.

FUNDAMENTAL PICKS BY MANSUKH DEC 2010

Target Price: 305 
UFLEX Ltd, India's largest flexible packaging company engaged in manufacturing of Polyester chips, Films, Coated Film, Laminates, Pouches, Holographic films Gravure cylinders, Inks and adhesives to all types of packaging & printing machines, offering total flexible packaging solution. Headquartered at Noida UFLEX has capacity of 25000 TPA with the market presence in 80 countries including USA, Canada, UK, Russia and African as well as Asian Countries. UFLEX clients include almost all leading FMCG players in the Indian market.

FINANCIALS: During the last five years (FY05-FY10), the Top line of UFLEX has grown at CAGR growth of 9%, Operating Profit and Net Profit of the company has also grown by 18% and 25% respectively. In FY10 the Net Sales of UFLEX rose by 2.95% to Rs 1579.58 crore over FY09, Operating Profit also surged by 24.62% to Rs 287.43 crore, UFLEX has also reported more than 20% jump in Profit after Tax to Rs 85.74 crore over FY09. In Q2FY11 the Net Sales of the company surged by 41%, Operating Profit and PAT also grew by 146% &328% respectively. The OPM & PATM of UFLEX for the same period were 29% & 14% respectively.

INVESTMENT GROUNDS
Industry Outlook
The Flexible packaging market has excellent growth potential in the food and processed food, personal care, FMCG and retail sector. The demand for smaller packaging and increasing consumerism due to higher purchasing power has been a boon for the flexible packaging market. With the introduction of innovative and new products, Indian Flexible Packaging Industry will lead to faster growth at a rate of around 25% annually. With the advent of newer plastic films, other novel materials and new technologies, the industry will be looking at better quality of the products and thereby, increased sales volumes. In fact, the market is expected to treble its output in the next few years owing to the greater demand from the food and processed food and retail segments.
     
Eying an Extensive Market Share by FY11
UFLEX is eying to capture the significant market share in flexible packaging industry in next 1-2 years. Currently UFLEX is enjoying 21% market share and further targeting to achieve 25% by the end of this fiscal year. The company is trying to attain this target by augmenting its consolidated revenue from Rs 2300 crore to Rs 3500 crore by end of FY11. If the company achieves this revenue target than the market share of the company will also significantly rise and may arrive at 40% by FY12.

Capacity Expansion to boost Topline
UFLEX has planned to boost its Topline by adding more capacities in both domestic and overseas markets. UFLEX has lined-up a capex of Rs 900 crore over the next two years. The company has planned to enhance its packaging capacity in both domestic and overseas markets to 3.35 lakh TPA from the present 2.35 lakh TPA by FY 12. Company's exposure to the plastic film business has increased due to commissioning of first line of polyester film project with 26400 TPA polyester film capacity at Mexico and the capacity will further increase after commissioning of second line of PET film with a capacity of 26400 TPA and commissioning of 35000 TPA of BOPP film, 30000 TPA PET film & 12000 TPA of CPP film in Flex P Film, Egypt. These expansions will have considerable increase on the profitability of the Company.

Exiting from non-core business will help to focus on existing business
To focus on its core business UFLEX has exited from a non-core business. UFLEX has sold 70% stake in AKC Developers to its joint venture partner Hanjer Biotech for 98 crore. In 2007-08 UFLEX picked majority stake in AKC Developers for the Rs 43 crore. AKC Developers is involved in municipal solid waste processing projects under the public-private partnership model. Further UFLEX has also estimated to exit from its non-core business of MSK Project, Telecommunication and Real Estate by Q3FY12 with estimated price of at Rs. 175 crore.

TECHNICAL ANALYSIS BY MANSUKH DEC 2010

MANSUKH DESK 

 During Q1FY2011, HCL Technologies reported growth across service lines, industry verticals and geographies. In the industry verticals, revenues from retail and consumer product group led with a sequential growth of 13% followed by 11.6% growth in healthcare, 10.3% growth in financial services and 8.6% growth in the manufacturing vertical. Revenues from telecom grew 10%. In service lines, revenues from custom application, infrastructure services and enterprise application services grew 15.2%, 8.5% and 6.5% respectively. At the current market price of Rs410, the stock is trading at 15.6x FY2011E and 12.4x FY2012E earnings. We c o n t i n u e t o ma i n t a i n o u r BUY recommendation on the stock with an upward revised target price of Rs440-450.
On technical perspective, stock currently in its retracement phase from the highs of Rs 455 on daily basis. Moreover entire correction from the highs of Rs 455 to the lows of Rs 367 seems to be completing at current juncture and we expect some counter actions in upcoming sessions. Moreover technical indicators i.e. RSI and MACD also revealed some buying opportunities in near term.

MANSUKH DESK   

SBI came out with slightly better 2QFY11 margins, up by 25bp QoQ to 3.4% leading to 45% YoY growth in NII. High CD ratio, reduction in excess liquidity on the balance sheet, lower proportion of bulk deposits and retirement of high-cost deposits aided margin expansion. Yield on loans for 1HFY11 was 9.5% v/s 9.3% in 1QFY11 and 9.66% in FY10. This improvement was aided by an increase in BPLR during the quarter. Cost of deposits declined marginally to 5.25% in 1HFY11 v/s 5.27% in 1QFY11. Increase in deposit rates are yet to be reflected in the books. The management guided to keep NIMs robust at 3.3-3.4% in FY11. We have modeled margins to improve by 60-70bp in FY11. This will lead to NII growth of +42% in FY11, which provides a significant cushion for higher credit costs and growth in profits.
On technical viewpoint, stock currently seems to be forming a shaven bottom pattern from the lows of Rs 2790. Moreover stock has already completed its retracement arena and is well poised for a new counter move towards Rs 3400 in upcoming sessions. It's RSI and other technical indicators also suggest some buying opportunities in close proximity. Hence investors are advised to BUY this stock for a price target of Rs 3350-3400 in one month.

2G SPECTRUM SCAM- DEPRIVED GOVT BY ALMOST $39 BILLION

The Comptroller and Auditor General (CAG) has meticulously documented how former telecom minister circumvented norms at every level and obdurately avoided scrutiny in awarding 2G licences in January 2008 at 2001 rates, which resulted in a loss of Rs 1.76 lakh crore to the exchequer. n 2008, India issued 122 new telecoms licences and the second-generation radio spectrum bundled with it to several Indian companies that had little or no experience in the telecoms sector, and at a price set in 2001. The state auditor said the allocation process did not reflect the correct value of radio spectrum as there was no auction and the entire process was flawed, benefiting selected companies. The auditor said the telecoms ministry did not do the requisite due diligence, granting 85 out of the 122 licences to ineligible applicants.

To recapitulate the spectrum swindle, the all India license and the spectrum for additional cellular operators (2G operators) was given away on a first-comefirst- served basis at 2001 prices. TRAI, experts within and outside the government, had all stated then that there was no justification for using 2001 prices when there were barely 4 million mobile subscribers as against 300 million subscribers in 2007. Soon after this sale, the parties who had secured the licenses sold it at about 6-7 times the price they had paid without doing any development at all. The difference between what the companies paid a total of Rs 9,000 crore and what the market price of these licenses were anything between Rs 60,000 to 100,000 crore is the scam, making it by far the biggest scam ever in this country. 

Who were the companies that benefited from this award of licenses? There were nine corporate entities who secured 120 licenses, which benefited from this under-valuation of the license fees Unitech Builders, Venugopal Dhoot's Videocon, Swan Telecom, Loop Telecom (reportedly owned by Ruias), S Tel, an unknown company owned by a shadowy entity Telecom Investments (Mauritius) Ltd and older players such as Shyam Telelink,, Idea Cellular, Spice and Tatas. Only a few of these were telecom companies or had any real interest in telecom. The deals struck soon after between UAE's telecom operator Etisalat and Swan Telecom, and that between Unitech and Talenor (of Norway), brought out the magnitude of the under-valuation. Swan Telecom sold 45 per cent of its stake to Etisalat for $900 million, taking its book value to $ 2 billion (Rs 10,000 crore). This is without putting up any infrastructure, let alone actually starting operations. The Unitech-Talenor (of Norway) deal was no different: it sold 60 per cent of its stake to Talenor for Rs 6,120 crores while paying only Rs 1,651 crore as license fee. Thus, the new entrants secured licenses for Rs 1,651 that were being valued in excess of Rs 10,000 crore by the market within a few months of their securing the licenses!

IMPACT ON TELECOM: India's mobile phone market is the world's fastest-growing and its nearly 700 million users trail only China, making it a must-invest market for any major global operator. But regulatory uncertainties have been a concern for some and could make foreign companies start to look more carefully where to invest. If the government imposes heavy fines on new licensees singled out in the auditor's report, it would weaken them further. The newer operators are yet to make profit as they offer heavy discounts to grab subscribers, and any financial penalty would be a blow for them, forcing some to leave the market. Some operators may also freeze network expansion until clarity emerges on the regulatory front, meaning slower growth for network equipment vendors and other service providers. In case licences are cancelled, it would lead to natural consolidation in the crowded 15-player market.

 

GLOBAL ECONOMY- NOW IRELAND ON THE BRINK OF INSOLVENCY

 Ireland is on the brink of insolvency too, which has helped drive down the S&P 500 stock index by nearly 4 percent over the last few days. But unlike Greece, Ireland is a relatively wealthy country, with per capita GDP of nearly $38,000. That's 21 percent higher than per capita GDP in Greece, and in the top third for European countries. Low corporate tax rates and a skilled workforce have made Ireland a haven for some of the world's biggest companies. And its public debt, about 65 percent of GDP, is far below Greece's crushing load, which is 126 percent of GDP.

But Ireland has one huge problem that may soon make it a supplicant to its European brethren: A failed banking sector that Ireland's government can no longer rescue on its own. Ireland is in the midst of a real estate bust that could trump even the ruinous downturns that turned parts of southern California and Nevada into suburban ghost towns, with home-grown banks stoking it all. Now, those banks are trying to manage catastrophic losses.That means the Irish government is also on the hook for the losses those banks endure--which have risen far beyond initial estimates, and may have a lot farther to go. So far, the Irish government is obligated to cover losses amounting to 175 percent of Irish GDP, which is becoming an unsustainable burden. Ireland wants the European Central Bank to continue lending money to Irish banks at low interest rates, but the ECB has different ideas. Inflation has been creeping up in Europe, and the central bank said recently that it wants to end its program of pumping liquidity into banks, not continue or expand it. Cutting off those loans to Irish banks could force defaults, which the Irish government would have to cover or essentially be in default itself. Germany, meanwhile, wants to hurry a bailout of Ireland, to prevent worries about sovereign bonds from spreading to Portugual or Spain, which would be a much bigger problem.

RAMIFICATION: A European bailout of Ireland would be manageable, and probably cost less than the Greek rescue. But Ireland doesn't want it, because the EU and IMF would force austerity measures onto the island nation that could effectively end its appeal as a businessfriendly nation with a high standard of living. Since Ireland is wealthier than other European nations that would essentially be lending it money, social programs would end up gutted, and taxes would soar.. And Ireland's 12.5 percent corporate tax rate--one of the lowest in the developed world--would almost certainly go up, taking what's left of the roar out of the Celtic Tiger. If multinational businesses abandon Ireland, it could fall quickly down the list of Europe's most prosperous nations.

What's most likely is some kind of Irish bailout, with tough negotiations over when it happens and the conditions Ireland must agree to. Ireland will fight hard to put off a bailout--at least until parliamentary elections on Nov. 25--and to retain its right to make its own fiscal decisions. But Ireland's luck may be about to run out, with other European nations likely to insist that Ireland face austerity measures at least as tough as those in Greece.

INDIAN MARKETS- SENTIMENTS ERODED BUT SOON ON THE ROAD OF RECOVERY

Bloodbath that started on the Dalal Street after the Diwali week got extended for the third successive week as global worries and 2G spectrum allocation and housing loan scams back home spooked the bourses. The benchmark indices -- Sensex and Nifty -- witnessed cuts of around two and a half percent each during the derivatives' expiry week. The markets edged lower in four out of five trading sessions. Volatility remained evident throughout the week as futures and options' (F&O) traders switched their positions from November month contracts to next month series. Realty counter suffered deep cuts during the week as investors rushed for profit booking in anything related to real estate or infrastructure space after the Central Bureau of Investigation (CBI) unearthed fake housing loan scandal. Metal, public sector undertaking and capital goods pockets also took serious beating from the bears. On the flip side, software and technology counters showed some strength during the passing week. The beginning of the week was good as bulls made a roaring comeback on Monday after European Union (EU) and International Monetary Fund (IMF) agreed on Ireland bailout package. The next four trading sessions, however, remained miserable for the Indian equities as news of housing loan scandal, North Korea bombarding dozens of artillery shells on one of the border islands of South Korea and expiry jitters turned the bears in action. Besides this, worries over rescue package may not be enough to meet Ireland's debt obligations also weakened sentiments during the latter part of the week.

After declining rapidly for last few weeks, the pace of deceleration in India's food inflation came down and the figure settled for 10.15% for the week ended November 13 compared with 10.30% for the previous week. This was though a sixth consecutive week of decline, raising hopes that food inflation will come into the single digit levels in the near term for the first time in over a year.

The domestic equity markets may consolidate around the lower levels for the Dec series before showing any significant moves either way Meanwhile, possibility of further slide could not be completely ruled out as the FIIs will be busy in profit booking ahead of year ending. Besides this, monthly sales and production figures from auto, cement and steel makers will be watched closely by investors. Monthly HSBC Markit Purchasing Managers Index (PMI) for manufacturing and services activity in the country will also provide important cues to the equity markets in the coming week. During the week, S&P CNX Nifty touched the highest level of 6020.25 on November 22, 2010 and the lowest point of 5690.35 on November 26, 2010. On the last trading day, the Nifty closed at 5751.95, with a weekly decline of 138.35 points or 2.35%. For the coming week, 5621.45 followed by 5490.95 are likely to be good support levels for the Nifty, while the index may face some resistance at 5951.35 and 6150.75 levels. HAPPY TRADING…..

MARKET OUTLOOK- CAUTIOUSLY OPTIMISTIC

MARKET INSIGHTS: On Wednesday Dec 01, 2010,
The domestic markets extended their gains for the third consecutive day supported by the good set of economic data. The joy of better than expected GDP numbers got doubled with the report that the output of six infrastructure industries, which had showed significant moderation in last few months, surged by a robust 7% in October 2010, against a 3.9% growth recorded in the same month last year, not only that Export for the month of October too showed a good growth coupled with decline in imports that led the trade deficit coming down significantly on the same time The seasonally adjusted HSBC PMI recorded a value of 58.4 in November, rising from October's reading of 57.2. The global cues too remained supportive and helped the markets gain strength, all the Asian markets closed in green while the European markets too traded with good gains. Earlier the start of the markets was flat tracking the sluggishness in the global markets, as the US markets closed lower while the Asian pack was not looking confident. But the markets started inching higher rejoiced with the good GDP numbers and the Finance Minister Pranab Mukherjee's statement that India can achieve GDP growth between 8.5 percent and 8.75 percent in the current fiscal that ends in March 2011 acted as a catalyst for the markets.  March 2011 acted as a catalyst for the markets.















TheBSE Sensex touched a high and a low of 19,870.19 and 19,525.15 respectively. (Provisional)
whilethe S&P CNX Nifty soared 100.85 points or 1.72% to end at 5,963.55 (Provisionally)There were 25 advances against 5 declines on the index. The S&P CNX Nifty touched a high and a low of 5,971.00 and 5,865.55, respectively (Provisional). There were 40 advances against 10 declines on the index. (Provisional).

In the BSE sectoral space, Metal up 3.24%, Realty up 3.13%, PSU: up 3.12%, Bankex up 2.98% and CD up 2.01%, while there were no laggards. The broader indices ended in the positive region; the BSE Mid-cap index zoomed 2.62% while the Small-cap index rocketed 3.06%. There were 2384 advances against 554 declines on the index. (Provisional).

All Asian equity markets finished in the green terrain on Wednesday on the back of good economic data, sharp increases was reported in purchasing managers indexes (PMI) in China, which was mainly driven by output and export orders, revealing strength both domestically front and overseas. Shanghai Composite advanced 3.27 points or 0.12% to 2,823.45, Hang Seng rose 241.81 points or 1.05% to 23,249.80, Jakarta Composite surged 87.88 points or 2.49% to 3,619.09, KLSE Composite was up 0.19 points or 0.01% to 1,485.42, Nikkei 225 jumped 51.01 points or 0.51% to 9,988.05, Straits Times soared 37.24 points or 1.18% to 3,181.94, Seoul Composite increased 24.69 points or 1.30% to 1,929.32 and Taiwan Weighted added 147.63 points or 1.76% to 8,520.11.

                                 MARKET OUTLOOK- CAUTIOUSLY OPTIMISTIC