Tuesday, November 6, 2012


Benchmark indices Sensex and NIFTY closed flat yesterday. Metal, auto, oil&gas and I T stocks are appears to be in consolidating mode. FIIs have stepped up the buying, however DIIs have aggressively net sold yesterday which forced indices to stay put where they are. China's manufacturing growth rate has improved in October compared to previous months. This news may keep metal stocks busy. Falling oil and gold prices are good news for our economy and consumer goods sector. Hence auto and FMCG stocks may sizzle before Diwali. Austerity measures announced by euro zone countries is good news for policy makers across the world in general and in particular for U S and U K. Recent reforms initiatives announced by the government has sent a strong signal to international rating agencies who are harping on further down grade. Most importantly corporate results  announced by most of the companies for Q2 of FY13 are good. Only PSU banks results are not encouraging due to slow down in economy and how they are being managed. Overall there is feel good sentiment. This may take the NIFTY to 5800 level this week, barring unforeseen incidents that has bearing on the markets.

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