Market Analysis: Weekly roundup till May 8
Worsening debt turmoil in Europe, has dragged down the markets. Sensex lost 4.5 per cent and closed at 16769 during the week, while Nifty ended the week at 5018 losing by 4.9 per cent over its previous weekends close.
During the week BSE Mid-cap and Small-cap indices lost 4.9 per cent and 5.4 per cent respectively. All the sector indices closed in red. BSE Metal and Realty indices was the top loser, down by 9.6 per cent and 9.5 per cent respectively during the week.
Major world indices came under pressure amid concerns that the financial mess in Portugal, Ireland, Greece and Spain (PIGS) could spread to more European nations. US job data in April released in the last week showed the fastest growth in four years. Due to debt concerns in Euro zone the stock market took little notice of it. American indices fell 6% in value in the last week.
Going Forward
RIL will set the tone for the market this week on the back of verdict in between RIL and RNRL is in favor of RIL. Investors are keenly eyeing on global macro news.
The overall tone for the markets this week could be cautious, with benchmark indices falling 5 per cent in the last week.
Mar 2010 Industrial Production and Inflation in Apr 2010 will be closely watched by the investors during the week. The US and Eurozone, UK and China are also scheduled to announce their industrial production data this week.
Corporate
Sterlite
tech
plans
Rs
9,600-cr
LCD
project
in
Maharashtra
Sterlite
Technologies,
will
set
up
an
LCD
(liquid
crystal
display)
factory
in
Maharashtra
at
an
investment
of
Rs.9,600
crore.
The
state-run
Maharashtra
Industrial
Development
Corporation
has
offered
50
acres
in
the
Shendre
industrial
estate
near
Aurangabad
and
at
Chincholi
near
Solapur.
Sterlite may choose the Chincholi site, as it is nearer to the gas pipeline of Reliance Industries. Sterlite has requested the state government for assured continuous availability of piped natural gas at subsidized rates for 10 years and availability of up to 10 Mw of power at subsidized rates. Besides, the company looks for fiscal benefits such as a tax holiday, relaxation in import duties for raw materials and other tax incentives.
Renault,
Bajaj
car
at
2,500
dollars
Renault
and
Bajaj
Auto
have
agreed
to
price
the
ultra
low-cost
(ULC)
car
that
they
are
jointly
developing
with
Nissan
at
$2,500
(around
Rs
1.10
lakh)
to
take
on
Tata
Nano.
Renault
and
Nissan
are
developing
an
ultra
low-cost
vehicle
with
the
Bajaj
group,
benefiting
from
its
expertise
in
light
vehicles
and
the
knowledge
of
the
Indian
market.
The
partners
have
resolved
the
issues
on
pricing,
which
had
been
widely
speculated
as
the
reason
for
the
delay
in
the
project
announced
in
2008.
Originally, the car was scheduled to hit the market this year, but that has been postponed to 2012. It will take on Tata Nano, currently available in a price range of Rs 1.23 lakh-1.72 lakh (ex-showroom, Delhi) for three variants.
Economy
India's
exports
may
cross
$170
bn
in
2009-10
The
government
value"s
India's
exports
for
2009-10
may
fall
short
of
the
previous
year's
figures
on
account
of
the
global
economic
slowdown,
but
it
will
cross
the
USD
170
billion.
The
country"s
exports
for
2008-09
amounted
to
USD185
million.
Due
to
the
global
slowdown,
the
country's
exports
kept
contracting
for
13
months
in
a
row
since
Oct
2008.
However,
it
entered
into
positive
territory
in
November
last
year.
Government"s stimulus packages, besides policy intervention by Commerce and Industry Minister, helped exporters counter the global demand slowdown. Since December 2008, the Centre had announced a string of measures, such as interest subsidy for exporters, to tackle the financial crisis. In August 2009, more sops like market-linked incentives were announced in the Foreign Trade Policy.
EU
races
to
ready
emergency
fund
before
Asian
markets
opens
European
Union
finance
ministers
pledged
to
stop
a
sovereign
debt
crisis
from
shattering
confidence
in
the
euro
as
they
held
an
emergency
summit
to
hammer
out
a
lending
mechanism
for
deficit-stricken
nations.
After Euro droped to 14-month low and soaring bond yields in Portugal and Spain last week, the leaders of 16 Euro nations agreed to fund the 440 billion euros ($570 billion) for debt stricken nations.
Europe"s failure to contain Greece"s fiscal crisis triggered a 4.1 percent drop in the euro last week, the biggest weekly decline since the aftermath of Lehman Brothers Holdings Inc"s collapse.
(An article by DAS CAPITAL MANAGEMENT & ADVISORS Pvt Ltd)