Positive open likely for the Sensex after a 5 day fall
=====================================
Stocks on Dalal Street are likely to trade on the upside on Wednesday
after a 5 day losing streak.The stocks are headed for a higher open on
positive global cues and attractive valuations.
U.S. stocks gained in the last hour of trading as a rally in energy
and technology shares overpowered earlier declines spurred by a drop
in home builder confidence to the lowest level on record.the Dow
gained 151 points or 1.83 percent, where as the Nasdaq barely closed
in the positive territory.
Asian stocks rose initially, but gave up their gains in the first
hours of the trade.The stocks market indices in Japan and korea are
down nearly 0.3 percent in early trade.The comments from FM today that
the 'Indian economy will bounce back to 9 percent next year buoyed by
local demand' might give a reason for bulls to dominate today's trade
and give the much needed relief to the markets.On the currency front
the rupee declined as much as 0.9 percent to 49.80, as foreign
investors sold equities increasing the demand for dollar.
The stocks in the sensex are now available at P/E multiple of less
than 9 and are looking attractive than ever. Metal stocks have been
the hardest hit among the Sensex stocks with Tata steel and sterlite
Ind losing nearly 80 percent of their value in the past year.Realty
stocks like DLF and Reliance Infra also suffered heavy losses with the
stocks down more than 70 percent this year.
We recommend accumulating big names like Grasim, Reliance L&T and BHEL
if you do not want to take major risks in the current scenario. We
might see a positive session for a chnage after more than a week.
N.Sukumar
Research Analyst
www.kences1.blogspot.com
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