NDPMS Wealth Management

Experts believe the market may surpass its January 2008 record of hitting 6357 on the Nifty and 21206 on Sensex in the next few days, may be by end of September quarter earnings season. The market snapped its three-week winning streak with profit-booking stealing nearly a percentage point from the Sensex; but consistent inflows of foreign money kept a check on the downside. Overall, it was a consolidation time for the market after a 6 percent rally witnessed in the previous three weeks. Besides hitting the 21000-mark intraday for the first time since November 2010, the Sensex did nothing extraordinary and moved in the 20700-20900 band throughout the week; its NSE counterpart gyrated in the 6100-6200 range. This week, the Nifty fell 44.45 points to 6189.35 and the Sensex lost 199.37 points to 20882.89, thus remaining 168 points and 323 points away from their respective record highs. Experts believe the market may surpass its January 2008 record of hitting 6357 on the Nifty and 2...

Chidambaram insists that the fiscal deficit target of 4.8 percent of GDP for the year to March 31, 2014, is a red line that will not be breached. Finance Minister P Chidambaram is finding it harder and harder to meet the government's budget promises and may sweep as much as USD 15 billion in subsidy costs into next year's accounts to ensure he hits fiscal targets ahead of national elections, ministry officials say. Chidambaram insists that the fiscal deficit target of 4.8 percent of GDP for the year to March 31, 2014, is a red line that will not be breached. The worst economic downturn since 1991 and a fall in the rupee to a record low have undermined budget assumptions for some months. Source: MoneyControl

According to Mishra, expectations of the BJP-led NDA coalition returning to power, and hopes of delayed cutback in the monetary stimulus in the US have been the major drivers of the rally. The widely held view on the street is that indices are poised to make a new high shortly. That may well turn out to be true. Yet the rally could end badly as corporate earnings continue to disappoint, warns Neelkanth Mishra of Credit Suisse, and suggests that investors should be booking profits instead of adding to their existing positions.  "While the BSE200 is unchanged YTD (year-till-date), sector performance has been extraordinarily skewed: IT, Telecom, Pharma and Staples have outperformed, whereas every other sector has seen a decline. PSU banks, Metals, Utilities and Industrials bring up the rear.” And this is not the first time that bulls have been led up the garden path….. “Since Jan-12, this is the third such rally, where PSU Banks, Industrials and Metals have together risen...

Cairn India , a subsidiary of London-listed Vedanta Resources, will announce its second quarter (July-September) results today. Analysts feel the oil & gas explorer is likely to come out with blockbuster earnings due to crude rally, weak rupee and dollar denominated cash during September quarter. The quarter is likely to be peak earnings for next few quarters. According to a CNBC-TV18 poll, analysts expect reported net profit to increase 12 percent sequentially to Rs 3,500 crore on forex gains while adjusted net profit to increase 25.5 percent quarter-on-quarter to Rs 3,070 crore in the quarter gone by.  Source: MoneyControl

Mahindra & Mahindra has signed a three and a half year wage settlement agreement with its workers at Nasik and Igatpuri plants, reports CNBC-TV18’s Ronojoy Banerjee. The move comes barely months after the company's Nasik plant witnessed a tools down strike in protest due to an alleged delay in the wage settlement. Top M&M sources hasv said that while the wage settlement with the workers at Nasik plant was done 10 days ago the Igatpuri facility's settlement took place on October 17.  Source: Moneycontrol

In a major relief to the dual technology (those offering services on both the GSM and CDMA platform) telecom license holders, Tata Teleservices and Reliance Communications (RCom), the department of telecommunications (DoT) has decided their licenses will not be scrapped. The decision is based on the legal advice of senior advocate P P Rao, consulted by DoT on the matter. This was after various groups, including industry body Assocham, the COAI, and Idea Cellular managing director Himanshu Kapania, insisted the Supreme Court’s order in February 2012 that cancelled 2G licences, should lead to quashing of 141 Unified Access Service (UAS) licenses, instead of only 122. Tata Teleservices holds 19 such licenses and R-Com has 22 across the country. At present, Tata Teleservices offers CDMA services in 19 telecom zones and RCom’s CDMA service is available in all 22 circles across the country. Source: Angel Broking

The stellar rally seen in the Indian equity market is all thanks to the fact that the US Fed didn’t taper its bond buying program (Quantitative Easing 3) due to which the liquidity taps continue to flow, says Udayan Mukherjee. Foreign institutional investors have bought more than Rs 4,400 crore worth of equity shares in cash market this week, including Rs 1,753 crore provisional figure of Friday’s session. In October so far, they are the net buyers with more than Rs 9,000 crore of shares. The Sensex closed at 3-year high of 20882.89. The index is now 324 points away from its all-time high of 21206.77 seen on January 2008. The market is also cheering the likelihood of Narendra Modi becoming the next Prime Minister, adds Mukherjee.   Source: Money Control