Negative global cues to weigh on the markets
Bears are likely to dominate Tuesday's session on Dalal Street, as negative global cues and profit booking might take a toll on the Sensex. Expect the benchmark index to give up nearly 2 percent or nearly 300 points and might test the crucial technical support of 14,520.00. Wall Street experienced a terrible day as stocks markets tumbled as new worries about the economy emerged after an index of manufacturing in New York indicated that demand weakened in June.The Dow fell 187.13, or 2.1 percent, to 8,612.13, and returned to a loss for the year. The broader Standard & Poor's 500 index fell 22.49, or 2.4 percent, to 923.72, and the Nasdaq composite index fell 42.42, or 2.3 percent, to 1,816.38. Raytheon Co. is eyeing India as a big growth market for the next five years with the potential to sell India new weapon systems for fighter aircraft, infrastructure security and hardware for missile defense.To gain access, the U.S. company's missile-defense unit has sought out a number of partnerships with Indian businesses and is close to reaching two agreements. One of them will be with Tata Power. In a separate development in what could be a theme going forward, Dr. Reddy's Laboratories Ltd and U.K.-based GlaxoSmithKline PLC(GSK) Monday announced a partnership to develop and sell selected products across emerging markets, excluding India, with immediate effect. This could bode well for Indian pharma industry as we are seeing multinational companies showing increased interest in Indian firms as Obama's healthcare reform is likely to boost the fortunes of generic manufacturers. Metals stocks took a beating on Monday as expected. Sterlite Ind, Tata Steel and SAIL were among the major losers on the Nifty as predicted by us yesterday. We might see further correction in Realty, Metal and this might spread to Consumer Goods and Durables today. RNRL was a high flier yesterday as the stock jumped by nearly 25 percent to Rs 108 on the news of favorable court ruling. We advise investors to book partial profits int his stock, as the legal battle might extend for few months or years as RIL is likely to move to the higher court. It is a good idea to sit out of the markets today, as ther will be only few opportunities to trade. The market is likely to open low stealing away the opportunity to short at attractive prices. We advise investors not to short the market after a 2 percent fall in Sensex, intraday. 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 -~----------~----~----~----~------~----~------~--~---
