*Markets may see big gains on Monday, say players * **
** ** ** ** * ------------------------------ **Positive cues Markets expected to rally in the short run Market players expect Insurance Bill to be passed More easing on P-Notes norms are also expected * ------------------------------ *Our Bureau* Mumbai, May 16 A decisive mandate for the UPA Government – led by Congress returning in a position of unexpected strength – could send Indian equities soaring in the short term, said market-men. The markets may open with huge gains on Monday, as investors who have been waiting on the sidelines are expected to pour in funds, brokers and fund managers said. The Sensex had gained 300 points on Friday, sensing a mandate for either a Congress or a BJP-led government and no likelihood of the Third Front coming to power. “On Monday we could see the markets probably open with gains of between five and 10 per cent. The markets will rally in the short run,” said Mr Motilal Oswal, Chairman and Managing Director, Motilal Oswal Financial Services Ltd. The markets will be euphoric and may open about 10 per cent higher, said Mr Nirmal Jain, Chairman, India Infoline. While this may possibly be the beginning of another bull market, one has to be cautious about negative cues from global markets, he added. Mr C.J. George, Managing Director, Geojit BNP Paribas, said the markets would “react positively, not just because of the exit of the Left from the Government but also perhaps because of the possibility of more economic stability. The FIIs will look at this positively as there will be no question of roll back or changes in the present policies and framework. So we could see a lot more inflows from them.” However, one must remember that there is a global recession and FIIs inflows will be dependent on that too. The election results have come as a positive surprise and are expected to go down well with the markets which like continuity of policy, mindset and ideology, Mr Dinesh Thakkar, Chairman and Managing, Angel Broking, said. Economic Reforms Reforms in the banking and insurance sectors, and PSU divestment will now be taken to their logical conclusion, said Mr Devesh Kumar, Managing Director, Centrum Broking Pvt. Ltd. “The new Government is expected to go ahead with the reforms in the banking and insurance sectors and Bills such as the insurance Bill, which allows FDI limit in insurance to be hiked, is likely to be passed,” said Mr U.K. Sinha, Chairman & Managing Director, UTI AMC. P-Notes “With the UPA already indicating its supportive view on P-Notes, further liberalisation here cannot be ruled out,” said Mr Thakkar. The UPA Government had put certain restrictions on P-Notes in October 2007 in the wake of huge FII inflows, but lifted them a year later even as parties such as the Left and the BJP protested. “I think there will be status quo maintained on norms for FIIs. Unless there are fresh developments globally there will not be any change in the norms here,” said Mr Sinha. http://www.thehindubusinessline.com/2009/05/17/stories/2009051750880100.htm -- To be a winner, all you need to give is all you have. ekamber --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en -~----------~----~----~----~------~----~------~--~---
