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Markets to get a flat start eyeing the developments in Europe

08 Nov 2011 Evaluate

The Indian markets snapped the last trading day of the week on a positive note supported by some development in the European region. Today, after a long weekend the start is likely to be flat-to-cautious as the global markets are once again concentrating on the latest happening in Greece and Italy, some profit booking too can be expected in early trade as the local markets escaped the slide which other regional peers witnessed on Monday. Banking stocks are likely to rejoice with Finance Minister Pranab Mukherje praising the Indian banking system and saying that a well-regulated banking system is preventing any collapse of India's economy. The telecom stocks too are likely to gt some boost as the Telecom Regulatory Authority of India (Trai) has argued that a uniform licence fee in terms of percentage share of revenues in telecom will not hurt government earnings because more services will be brought under the licence fee regime. Trai has also proposed to bring infrastructure providers (tower companies) and Internet service providers' licences under the uniform licence fee regime. These services are exempt from paying any fee.However, the PSU oil stocks may come under pressure as the government may further delay the rise in diesel prices after the criticism from its allies and as the move could cause further damage to government reputation ahead of key state elections.

Apart from this there will be many important result announcements to keep the markets buzzing, Aban Offshore, ABB, Aurobindo Pharma, Bosch, Godrej Inds, IDFC, Morepen Lab, Reliance Infra, Reliance Power and United Breweries Hldg are among the many to announce their numbers today.

The US markets closed modestly higher on Monday, monitoring the developments in Europe as Greece’s latest rescue package was under discussion and Italy’s borrowing costs kept rising. There was some cautiousness ahead of the Fed’s report on how much consumers borrowed in September, expecting a rise in borrowing that could indicate consumers’ confidence towards economy. The Asian markets have made a mixed start, though most of the indices are trading in green, the Japanese market was declining for the second straight day as Italian PM struggled to hold on power. In China too, the cautiousness remained high on speculation that the government won’t ease monetary policy even as the economy slows.

Back home, Indian frontline equity indices snapped a volatile session on a positive note on Friday but settled only with moderate gains. Despite trading with higher for most part of the session the bourses failed to sustain the optimism as domestic sentiments swayed to the tune of developments from the Euro-zone where a meeting of leaders of the G20 group of major world economies was underway. The sanguinity remained under check amid uncertainties looming over the outcome of a confidence vote in the Greek government and ahead of a widely-watched US nonfarm payroll data. However, across the board buying interests was largely evident as investors rejoiced after the Greek PM George Papandreou abandoned the controversial plan for a referendum against Europe’s recent rescue package, easing concerns that Greece would default on its large debts. Marketmen also cheered European Central Bank’s surprise decision to cut interests rates by 25 basis points amid forecasts that the economic growth will mildly slowdown in the latter part of 2011. On the domestic front, the PSU oil marketing companies failed to extend uptrend for the third straight session despite hiking petrol prices by Rs 1.80 per litre, the 4th hike in the current financial year, because of recent deprecation in rupee, which increased the cost of imported crude oil. The upside for the local bourses also got capped after Montek Singh Ahluwalia affirmed that the petrol price hike in India would certainly give an upward tick to headline inflation. Earlier on Dalal Street, the benchmark got off to a gap up beginning as investors largely remained influenced by the optimistic sentiments prevailing in Asian markets after the worries of a disorderly default of Greece faded away. Thereafter, the key gauges continued to trade in a narrow range through the morning trades. The frontline gauges even went on to drift below the neutral line for a brief period due to volatility in Europe but some short covering in the dying hours of the session ensured that the bourses extend the gaining streak for yet another session. Moreover, the broader markets finished on a positive note in tandem with their larger peers. On the BSE sectoral space, the Metal index remained the top gainer and settled with over one and half a percent gains followed by the rate sensitive Capital Goods pocket which too went home with over a percent gains. But the Oil & Gas sector remained the only chink in the armor as it was the only laggard in the space which went home with moderate losses, dragged by heavyweight Reliance which sank by over half a percent. Finally, the BSE Sensex gained 80.68 points or 0.46% to settle at 17,562.61, while the S&P CNX Nifty advanced by 18.45 points or 0.35% to close 5,284.20. Markets remained closed on Monday for a local holiday.

The US markets managed a close of modest gains on Monday tracking European developments.Though, the trade remained volatile and during the midday the indices slumped after Italian Prime Minister Silvio Berlusconi, under pressure from markets and rebels in his party denied reports he would resign. Italy's borrowing rates spiked Monday to the highest level since the country adopted the euro. Italy’s public debt, by percentage, is one of the largest of any country in the world. The sentiments of the markets got boosted in last as news emerged on Greece’s steps towards forming a new government and ensuring it receives its next round of aid.

The Dow Jones industrial average rose 85.15 points, or 0.71percent, to close at 12,068.39. The Standard & Poor’s 500 index rose 7.89, or 0.63 percent, to 1,261.12, while the Nasdaq rose 9.10, or 0.34 percent, to 2,695.25.

SEBI Registered: Investment Adviser - INA000013323

Name of the IA registered with SEBI:	The Alchemists Ark Pvt. Ltd.
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Trade/Brand Name of IA:	MoneyWorks4Me Investment Advisers
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SEBI Registration Number:	INA000013323 Validity - May 16, 2019 - Perpetual
Registration:	Non-Individual
BSE Enlistment No:	1187
Address:	B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045
Compliance officer Details:	Name: Shrikant Jagtap Email: shrikant.jagtap@moneyworks4me.com Telephone: +919860359463 Address: Same as IA
Grievance Officer Details:	Name: Mukta Vaze Email: mukta.vaze@moneyworks4me.com Telephone: +91 98609 19463 Address: Same as IA
Principal Officer Details:	Name: Atharva Bhide Email: atharva.bhide@moneyworks4me.com Telephone: +91 91758 99463 Address: Same as IA
Standard Warning:	Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Disclaimer:	Registration granted by SEBI, enlistment with exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

Warning: Investment in securities market are subject to market risks. Read all the related documents carefully before investing.

Disclaimer: Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provides any assurance of returns to investors.

Compliance Officer:

Name: Shrikant Jagtap

Email: shrikant.jagtap@moneyworks4me.com

Mobile No: +91 97638 00745

Grievance Officer:

Name: Mukta Vaze

Email: mukta.vaze@moneyworks4me.com

Mobile No:+91 98609 19463

Principal Officer:

Name: Atharva Bhide

Email: atharva.bhide@moneyworks4me.com

Mobile No:+91 91758 99463

SEBI regional/local office address -

Plot No. C 4-A , G Block, Near Bank of India, Bandra Kurla Complex, Bandra East, Mumbai, Maharashtra 400051

Address:

The Alchemists Ark Pvt. Ltd., B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045

Data provided by Accord Fintech Pvt. Ltd.

*Color code for outperformance consistency

*Number is average 3 year rolling returns

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