Monthly Archives: December 2016

The Markets ended on a positive note today, being Thursday being the last day for F&O. The BSE gained by 155 points the sensex being 26366, the Nifty was high by 68 points being 8103. Auto, Metal stocks rallied. The NSE files a prospectus for its IPO amounting to INR 10,000 crore to sell 25% of its stock. Overall market capititalisation has increased by 1.01% 804 stocks have declined and 1559 stocks have advanced. 1567 stocks are unchanged. In the long term cement stocks will do well with the Government emphasis on infrastructure spending and a revival in rural demand. Asian Markets were weak today. Markets are going through exciting times with new annoucements from Government and the Trump administration faring, Trading range is how markets will be. Book profits periodically you will benefit. HAPPY TRADING AND INVESTING.  

Markets were very down today, the Nifty ended below 8000 at 7979 minus 82 points, while the sensex lost 718 points in 7 straight days at 25979 minus 262 points since previous closing. The fears of demonetisation lingers still in the Market. Market is awaiting the December 3rd quarterly results which is expected to be bad. Sales seem to have come down for companies like fmcg, two wheeler as most of these transactions happen in cash. Rural economy is cash economy, most of the two wheeler and fmcg sales take place in rural India, so the market is bad. The problem is people s income inflow has been hit as many were dependent on cash, so buying  has come down. Buying, is restricted only to the essentials and the rest is kept in abeyance. Commodity stocks like steel, zinc, copper might do well as there will be demand for comodities once the Government starts taking up infra structure projects, which will drive prices of these commodities. Banking stocks will do well due to the huge money inflow they have got, which has resulted in huge treasury gains. Lending rates have been stable and banks are awash with funds, so they can lend at competitive rates which will  lead to more business for banks. The negative factor is the Federal Reserve which is increasing lending rates which will effect borrowing and the international markets will be effected. Trump the President Elect factor is to be seen as he seems to be Nationalistic in persona and is bothered more about US protection. HAPPY TRADING AND INVESTING.

The severe cold has been subdued in my city of Bangalore, the weather is a bit pleasant today.Markets are not that pleasant the Nifty dropped by 28 points to 8153 and the sensex dropped by 83 points to 26519. The Federal Reserve raised the interest rates and this led to the markets down in India and the Rupee becoming weak. Generally all stocks have come down. Banks have gained in principle due to demonetisation as a lot of deposits have flown to banks, thereby raising treasury incomes. A lot of foreign selling has taken place supported by domestic financial institutions to prop up markets. But still, markets are dull. The effect of demonetisation will be there for some more time, taking a lot of time to recover, as people have to get used to a cashless economy which has now thrown many lives out of gear. Demonetisation has got and will get more money into the system. A lot of money with the Government will lead to more spending by the Government thereby,improving the Economy. A lot of Government spending will boost the finances of the people as more jobs will be created leading to creation of wealth. Fmcg, two wheeler, retail, will suffer for sometime due to less cash usaage, Real Estate sector will take a long time to recover as this sector is mainly cash dependent.It is better to book profits periodically. HAPPY TRADING AND INVESTING.

The BSE Sensex was down by 92.89 points at 26559.92 and the NSE Nifty was down by 31.60 points at 8192.90. The market is in a trading range. Whatever gains it had made since last 4 days was snapped today. Reliance JIO a Mukesh Ambani group company announced a boquet of offers which include Data, voice and video till March 31st 2017. This has led to fall in telecom stocks as other companies have not given such attractive offers till now. The Demonetisation drive has effected many businesses as demand from the rural sector is high particularly fmcg and rural India is a cash economy. Maruti and Enfield have done very well as their sales have improved. Consumption will be very low as people mainly workers in small establishments are not getting their money due to currency shortage. The Real Estate Sector is down due to the ban on Rs 500 and Rs 1000 notes. Real Estate is carried out on cash and cheque basis. India has to get used to bank transactions to get on to normalcy. The next quarter results are to be seen to study the market. Markets will tend to be weak for sometime and much time is required to pick up. Meanwhile opportunities are there for picking stocks. HAPPY TRADING AND INVESTING.