Stimulus package and Rate cut to provide early boost to the stocks
Stocks in Mumbai are likely to gain on Monday on the news of rate cuts by the RBI and the new stimulus plan that was announced by the government. Expect the Sensex to gain 2 to 3 percent for the day. Meanwhile,Japanese shares led Asian stocks higher in early trading Monday, with Tokyo's benchmark Nikkei index adding as much as 1.16%, or 91.91 points, to 8,011.71. The big news over the weekend is about the government's plans to allocate an extra 200 billion rupees as part of a total 3 trillion rupee spending plan for the rest of the financial year ending March 31. The money will be spent on building infrastructure, providing export incentives, helping banks and offering relief to people who have taken out home loans. Watch out for Infrastructure firms and stocks related to Realty. IDFC, JP Associates,Unitech are some of the stocks that might see a good run on this news.Also banking stocks like ICICI and SBI might see a rally on the back of rate cut from the RBI by 100 basis points. Auto stocks might see some relief following the four percentage point cut in Cenvat announced by the Government on Sunday. Tata Motors is our pick in this sector at Rs 153, especially for those who would like to take risk and a high reward in the next 2 weeks. Some sort of financial package is in the works for Jaguar and LandRover units in London and this might be a big relief for the Tata Motors stock, Overall see a broad based rally today on the back of a stimulus package and the good news on the rate cuts. We expect a nice jump in the indices, unless the election results take the center stage in today's trade. Previous Close Box: BSE Sensex 8965.20 -264.55 NSE Nifty 2714.40 -73.60 USD Rs 49.69 Oil Nymex $40.81 Research Desk --~--~---------~--~----~------------~-------~--~----~ 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 -~----------~----~----~----~------~----~------~--~---
