Stocks to extend gains on hopes of a global recovery Stocks are expected to extend their gains for the second day in a row as hopes of a global recovery and measures by SEBI and RBI are likely to boost the sentiment on Dalal Street.The Sensex is likely to cross the 10,500.00 level with ease as we might see a 3 to 4 percent gain in the indices on both the exchanges.
U.S. stocks rallied sharply into Monday's close, pushing the Dow Jones Industrial Average above 9,000 after signs emerged that the credit markets are thawing and Ben Bernanke said he backs another fiscal stimulus. The Dow gained nearly 4.67 percent to end the day at 9,265.43 and the Nasdaq gained 3.43 percent to close at 1770.00 levels. Japan stocks rose a third day on expectations the U.S. will introduce additional economic stimulus measures, boosting demand for Japanese- made products. Nikkei gained more than 3 percent in early trade. Crude oil rose for a third day on signs that the Organization of Petroleum Exporting Countries will reduce production to halt a 50 percent drop in prices since July. Crude oil for November delivery rose $2.40 to settle at $74.25 a barrel. So its results time on Dalal Street and most of the Q2 numbers came in below expectations.Idea Cellular, HT Media and Petronet LNG reported a decline in profits QOQ where as Canara Bank and United Phosphorus came out with impressive set of numbers. Even though the numbers are not up to the mark, considering the fall in stock prices we see an attractive bargain in most of the stocks. Almost all the cement makers except Shree Cement, have reported a 20 to 50 percent decline in profits due to high input costs and lower margins due to price controls. The industry currently faces the problem of over capacity and slowing demand making cement companies more vulnerable in the short to medium term. Patient and long term investors should look to accumulate stocks like Managalam Cement, JK Cement and India Cements in the medium term. Large caps are likely to continue their dominance over the midcaps as investors are more likely to buy risk averse blue chips rather than midcaps with high beta. Stocks like Core Projects that were slaughtered due to margin calls are likely to recover in today's trade. For a change, we expect Realty companies to make the top gainers list today. Market Close Box: BSE Sensex 10223.09 247.74 NSE Nifty 3122.80 48.45 USD Rs.48.83 Oil Nymex $74.80 B.Karthick Research Analyst. --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Kences1" 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/kences1?hl=en -~----------~----~----~----~------~----~------~--~---
