sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« Markets »
 FM calms nerves, says no plan to tax market gains
 Why we must tweak the market-led model
 PE transactions prompt income tax queries over round tripping concerns
 Amended India-Mauritius tax treaty only covers investments in shares
 Government drops cap gains tax on startup shares held for 2 years
 Tax-free bonds regain demand in the secondary market
 Relevant Market’ Under Competition Act, 2002
 Indian markets best in terms of earnings momentum, price revision
 How India will become a common market with GST
 Broader markets outperform; Nifty holds 8,500
 Have Indian markets run ahead of fundamentals?

Market to extend gains at start
July, 02nd 2009

Indian market is likely to extend Wednesday`s gains, at least at the start. Things could turn uncertain and sideways afterwards as most players would likely remain restrained ahead of the Railway Budget tomorrow and the Union Budget on Monday.

World equity markets started a new month and a new quarter on a positive note, with gains being registered across the board. The catalysts were a slew of economic reports that further reinforced a growing view that the worst of the global recession is behind us. Still, a few headwinds like unemployment and bankruptcies are yet to be tackled fully. Global trade remains in a limbo, while recovery in the crucial banking and housing sectors remain sluggish.

Coming to the todays outlook, the Indian market is likely to extend Wednesday's gains, at least at the start. Things could turn uncertain and sideways afterwards as most players would likely remain restrained ahead of the Railway Budget tomorrow and the Union Budget on Monday. The Economic Survey for FY09 will be presented in the parliament today.

We believe the Budget will be neutral from markets perspective. Expectations have been muted and rightly so. No point speculating on a big event like budget. The right approach is to wait for the event to unfold and then take a call. At the same time, one should not be too pessimistic either.

Economic activity across the globe is on a recovery path, though in the mature economies things are still precarious. Back home, mixed signals are coming from the latest data points. Manufacturing sector continues to show encouraging signs, as do the monthly sales volume of auto and cement companies. On the export front though, the gloom persists and is unlikely to end anytime soon. In fact, even inflationary expectations may escalate following the fuel price hike.

Also bear in mind, Wednesday's rally was pretty much restricted to the large caps, while the broader market remained subdued. Market breadth was negative and turnover too was down from the previous day. As far as fund action goes, the FIIs were net buyers while the local institutions chose to lock in some gains.

FIIs were net buyers in the cash segment on Wednesday at Rs1.86bn while the local institutions pulled out Rs763.8mn. In the F&O segment, the foreign funds were net buyers at Rs519.5mn. On Tuesday, FIIs were net buyers at Rs2.29bn in the cash segment.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Vision

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions