NATIONAL MANUFACTURING POLICY(A POSITIVE MOVE TO IMPACT LONG TERM): A HIGH LEVEL COMMITTEE TODAY TODAY GAVE THE IN-PRINCIPLE APPROVAL TO THE MANUFACTURING POLICY WHICH ENVISAGES CREATION OF MEGA INDUSTRIAL ZONES WITH WORLD CLASS INFRASTRUCTURE FACILITIES. THE MEETING CHAIRED BY PRIME MINISTER MANMOHAN SINGH DIRECTED THE COMMERCE & INDUSTRY MINISTERY TO COMPLETE THE CONSULTATION PROCESS WITH OTHER MINISTRIES WITHIN A MONTH SO THAT THE FINAL POLICY COULD BE BROUGHT BEFORE THE CABINET SOON. PM SAID THAT "THIS WILL SEND A POSITIVE MESSAGE TO THE INVESTING COMMUNITY". WITH THE OBJECTIVES OF CREATING 100 MILLION ADDITIONAL JOBS AND TAKING THE SHARE OF MANUFACTURING TO 25%(AT PRESENT ITS 15%-16%)IN THE COUNTRY'S GDP BY 2025. THE DRAFT POLICY PUT UP BEFORE THE COMMITTEE PROPOSED CREATION OF THE NATIONAL INVESTMENT & MANUFACTURING ZONES(NIMZs). THIS WILL HAVE VERY GOOD IMPACT IN THE GROWTH OF COUNTRY'S GDP. STOCK MARKET ANALYSTS BELIEVE THAT THIS WILL BRING THE INTERNATIONAL INVESTORS TO LOOK-IN THE GROWTH PROSPECTS WITH CLARITY AND CONVICTION.
MONSOON & INFLATION: ON THE DAY WHEN FOOD INFLATION AGAIN BREACHED THE 9% MARK AFTER A GAP OF 2 MONTHS, PRIME MINISTER'S TOP ECONOMIC ADVISOR C.RANGARAJAN TODAY SAID PRICES WILL DECLINE BY THE END OF OCTOBER IN EVENT OF A GOOD MONSOON. RANGARAJAN ALSO EXUDED CONFIDENCE THAT HEAD LINE INFLATION RATE WOULD DECLINE TO 6.5% BY MARCH 2012 AND THAT MONSOON WOULD LEAD TO A DECLINE IN PRICES FROM THE CURRENT LEVEL OF 8.66%(APRIL).
IN A DAY OF DULL TRADING, THURSDAY, SENSEX ENDED FLAT,9 POINTS DOWN AT 18385 & NIFTY AT 5521.05 DOWN 5.80,AMID RISING FOOD INFLATION(Food Inflation shot up to 2 months high of 9.01% for the week ended May28,from 8.60% in the previous week)AND GOVERNMENT CAUTION THAT SLOW ECONOMIC GROWTH MAY HIT TAX COLLECTIONS THIS FISCAL. ANALYSTS SAID THAT INFLATION FIGURE RAISED INVESTOR CONCERNS THAT OVERALL INFLATION MIGHT MOVE UP, LEADING TO FURTHER HIKE IN INTEREST RATES,WHICH HAVE ALREADY HURT CORPORATE MARGINS.
WHAT FOR TODAY?? THE CSO WILL LAUNCH A NEW SERIES OF IIP INDEX TODAY. THE NEW SERIES WILL HAVE 45% MORE ITEMS THAN IT HAS 2004-05 AS ITS BASE YEAR.SOURCES SAY THAT THE NEW BASE IS BROADER AND WILL SCALE UP TO 600 ITEMS INSTEAD OF 400.HOWEVER, THE GOVERNMENT WILL CONTINUE THE OLD SERIES DATA FOR THREE MORE MONTHS TO MAINTAIN COMPARABILITY. CNBC-TV18 POLL INDICATES THAT INDUSTRIAL OUTPUT IN APRIL JUMPED BY 5.1%, WHICH IS SLOWER THAN THE 7.3% RISE IN MARCH . APRIL IIP IS LIKELY TO BE SEASONALLY SOFTER AND MAY INDICATE SLOWDOWN.
NOW MARKETS WILL REACT TO THE IIP NUMBERS, WHICH SHALL COME ANY TIME DURING THE DAY. ANY FIGURE ABOVE EXPECTED PERCENT(5.1%), SHALL BOOST THE SENTIMENT FOR A SHORT WHILE, WHICH MAY TAKE NIFTY TO 5620-5650, HOWEVER ANY FAILURE IN THIS FRONT SHALL BRING DOWN THE SENTIMENT IN FAVOR OF BEARS AND NIFTY MAY TANK TO 5400 LEVELS.
AS THE MEDIUM AND LONG TERM TREND OF THE MARKET IS DOWN, ONE SHOULD BUY PE5600,PE5500,PE5400 ON EVERY RISE TILL 5700(which may be interim top in June series), WHICH SHALL GIVE PROFITS AS THE NIFTY MAY TOUCH 5400 ANY TIME IN THE JUNE SERIES.
FOLLOWING STOCKS SHOULD BE WATCHED AND BOUGHT IN DELIVERY FOR MEDIUM AS WELL AS LONG TERM PORTFOLIO:
IL&FS TRANSPORT(210.40):BUY FOR TARGET OF 300++
TITAN(4526.80):BUY IN CASH OR FUTURE AND ADD MORE ON EVERY DIP FOR THE TARGET OF 4800-5000.
CROMPTON GR(270.65): BUY FOR THE MEDUIM TERM TARGET OF 300++
DIVI'S LAB(772.50):UNDER VALUED STOCK MAY SOON HIT TARGET OF 1000++
PATEL ENGG(159.40): BUY FOR TARGET OF 170++
HDFC BANK(2362.80):A VERY GOOD BUY, WITH MINIMUM RISK FOR A SHORT TERM TARGET OF 2500++ AND LONG TERM TARGET OF 4000+++
Safe Harbor Statement:
Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.Nothing in this article is, or should be construed as, investment advice.
Disclaimer:
This is neither an offer nor a solicitation to purchase or sell securities. The information and views contained on this blog are believed to be reliable, but no responsibility (or liability) is accepted for errors of fact or opinion. Writers and contributors may be trading in, or have positions in the securities mentioned in their articles. Neither I (Vikas Srivastava) nor any of the contributors accepts any liability arising out of use of the above information/article. Reproduction in whole or in part without written permission is prohibited.
MONSOON & INFLATION: ON THE DAY WHEN FOOD INFLATION AGAIN BREACHED THE 9% MARK AFTER A GAP OF 2 MONTHS, PRIME MINISTER'S TOP ECONOMIC ADVISOR C.RANGARAJAN TODAY SAID PRICES WILL DECLINE BY THE END OF OCTOBER IN EVENT OF A GOOD MONSOON. RANGARAJAN ALSO EXUDED CONFIDENCE THAT HEAD LINE INFLATION RATE WOULD DECLINE TO 6.5% BY MARCH 2012 AND THAT MONSOON WOULD LEAD TO A DECLINE IN PRICES FROM THE CURRENT LEVEL OF 8.66%(APRIL).
IN A DAY OF DULL TRADING, THURSDAY, SENSEX ENDED FLAT,9 POINTS DOWN AT 18385 & NIFTY AT 5521.05 DOWN 5.80,AMID RISING FOOD INFLATION(Food Inflation shot up to 2 months high of 9.01% for the week ended May28,from 8.60% in the previous week)AND GOVERNMENT CAUTION THAT SLOW ECONOMIC GROWTH MAY HIT TAX COLLECTIONS THIS FISCAL. ANALYSTS SAID THAT INFLATION FIGURE RAISED INVESTOR CONCERNS THAT OVERALL INFLATION MIGHT MOVE UP, LEADING TO FURTHER HIKE IN INTEREST RATES,WHICH HAVE ALREADY HURT CORPORATE MARGINS.
WHAT FOR TODAY?? THE CSO WILL LAUNCH A NEW SERIES OF IIP INDEX TODAY. THE NEW SERIES WILL HAVE 45% MORE ITEMS THAN IT HAS 2004-05 AS ITS BASE YEAR.SOURCES SAY THAT THE NEW BASE IS BROADER AND WILL SCALE UP TO 600 ITEMS INSTEAD OF 400.HOWEVER, THE GOVERNMENT WILL CONTINUE THE OLD SERIES DATA FOR THREE MORE MONTHS TO MAINTAIN COMPARABILITY. CNBC-TV18 POLL INDICATES THAT INDUSTRIAL OUTPUT IN APRIL JUMPED BY 5.1%, WHICH IS SLOWER THAN THE 7.3% RISE IN MARCH . APRIL IIP IS LIKELY TO BE SEASONALLY SOFTER AND MAY INDICATE SLOWDOWN.
NOW MARKETS WILL REACT TO THE IIP NUMBERS, WHICH SHALL COME ANY TIME DURING THE DAY. ANY FIGURE ABOVE EXPECTED PERCENT(5.1%), SHALL BOOST THE SENTIMENT FOR A SHORT WHILE, WHICH MAY TAKE NIFTY TO 5620-5650, HOWEVER ANY FAILURE IN THIS FRONT SHALL BRING DOWN THE SENTIMENT IN FAVOR OF BEARS AND NIFTY MAY TANK TO 5400 LEVELS.
AS THE MEDIUM AND LONG TERM TREND OF THE MARKET IS DOWN, ONE SHOULD BUY PE5600,PE5500,PE5400 ON EVERY RISE TILL 5700(which may be interim top in June series), WHICH SHALL GIVE PROFITS AS THE NIFTY MAY TOUCH 5400 ANY TIME IN THE JUNE SERIES.
FOLLOWING STOCKS SHOULD BE WATCHED AND BOUGHT IN DELIVERY FOR MEDIUM AS WELL AS LONG TERM PORTFOLIO:
IL&FS TRANSPORT(210.40):BUY FOR TARGET OF 300++
TITAN(4526.80):BUY IN CASH OR FUTURE AND ADD MORE ON EVERY DIP FOR THE TARGET OF 4800-5000.
CROMPTON GR(270.65): BUY FOR THE MEDUIM TERM TARGET OF 300++
DIVI'S LAB(772.50):UNDER VALUED STOCK MAY SOON HIT TARGET OF 1000++
PATEL ENGG(159.40): BUY FOR TARGET OF 170++
HDFC BANK(2362.80):A VERY GOOD BUY, WITH MINIMUM RISK FOR A SHORT TERM TARGET OF 2500++ AND LONG TERM TARGET OF 4000+++
Safe Harbor Statement:
Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.Nothing in this article is, or should be construed as, investment advice.
Disclaimer:
This is neither an offer nor a solicitation to purchase or sell securities. The information and views contained on this blog are believed to be reliable, but no responsibility (or liability) is accepted for errors of fact or opinion. Writers and contributors may be trading in, or have positions in the securities mentioned in their articles. Neither I (Vikas Srivastava) nor any of the contributors accepts any liability arising out of use of the above information/article. Reproduction in whole or in part without written permission is prohibited.
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