March First Week
Thursday, Indian share market oscillated like a drunkard loosing 52 points in Bombay Stock Exchange, BSE. Tata Nano car will be launched for sale during 23 March boosted the Tata Motors' shares to end up 7%. Also the news added that orders of Tata Nano cars will be taken from that date onwards. Noted that the shares of Tata motors surged to this level when compared to three months. At the same time, Ranbaxy shares plunged 18%. Recently Piramal Health Care shares zoomed 29%, in that 17% dipped on thursday. The weak global cues added fuel to the downtrend share market.
Gross Domestic Product, GDP Reports were released for third quarter which ticked the GDP data to 5.3 which is very less and this dragged the market down. It is notable here that the same data was 7.6 in second quarter. But market regained the lost points as there were hopes that fourth quarter gdp data will be good. But continuous fall in Rupee against Dollar saved market as this is favorable for software companies shares.
Friday the market closed with BSE down by 63 points at 8892. Investors worried about the market level below 9000. Beginning of last year points were 21K but now where it is heading. Hoping that market would recover everyday, investors enter market but some weak global economy data release affect this hope to a great extent. Even mutual funds are having the amount in hand. Rupee heading fast crossing 51 a Dollar is a happy news for Exporters but is a bad news for investor. Especially the forward contracts treated this as good news that rupee was ar 51.13 on friday. But nobody is dare to put new forward contracts at this rate.
Inflation data released on thursday was 3.36 which is the fourteen month low value. Whether it is showing deflation in the nation ? Last announcements of Tax cut which were announced after the budget triggers teh mind of the people that this announcement would be better it it was released along with budget; because market was not satisfied with this budget. Since inflation is decreasing every week this shows the stagnant in the industry and the market is looking at the RBI rate cut. If there is any such news that will surely boost the market.
Stock Recommendations : Construction data showed that construction growth has been increased in recent months which is a good news for Real estate share like DLF, IBREALEST, IVR Prime etc. It is good to grab these share in regular gaps. Also construction sector shares like L&T is quite advisable to pick up with the strength that it has received orders worth many crores, in addition to the cement sector shares like ACC, Ambuja cement can be the targets for traders and investors.Refinery and oil company stocks look week as oil price is increasing due to the increase in demand. Also monday expectations are on the merger of RIL and RPL. RIL is having more weightage in Nifty. This merger would benefit RIL share holders but de benefit the RPL share holders. Shares of RPL may drop on monday with the effect other Refinery stocks too can shed blood.
March First Week