morning thoughts...
The markets bounced as expected and closed above the intraday resistance levels.
Technically the markets looks fine and should continue the uptrend in the coming sessions with positive bias.
However, Defensives are the fall back options during times of gloom and uncertainty, till the end of last year, FMCG stocks were the preferred pack on the back of their stable growing businesses, improving financial performances, higher payout ratios, etc. Not to mention the lack other good areas to invest in at the time. And in the process, pretty much the entire sector's valuations sky rocketed.
However, in the year till date, the BSE-FMCG Index has been amongst the worst performers, rising by only 5% during this period. In comparison, the BSE-Capital Goodsand the BSE-Bankex indices are up by about 53% and 34% respectively.
It seems that a little over a month of the Modi government has completely changed the sentiments. And why not? After all, there are some signs of the scenario improving. These include higher commercial vehicle sales volumes, rising IIP numbers, improving trends in the manufacturing and services PMI, higher non-oil imports, all of which point towards the economy improving from here on.
And in the process, the focus has shifted away from FMCG stocks, it seems!
While higher valuations may be one aspect, it is believed that FMCG companies are likely to see pressure on volumes given the higher inflation levels and the reduction in discretionary spending.
Astrologically Hareeyali shravan shani dev amavasya is considered to be most auspicious and is celebrated with high gusto in north , south and west india with great enthusiasm , most of the flaws of people are nullified and they are blessed with happiness , security , health and wealth , so one must do thier best according to thier horoscopes on the day, the day falls on 26 july - saturday this year.
One right step towards astrology can change destiny.
All kinds of Business/job problems,education,higher studies, Career Problems, promotions , transfers, Problems of Marriage , delay in marriage , problems in marital life , Child Problems,Bad debt/loan Problems, legal /court problems, Depression , foreign migration problems,restlesness and frustration problems , failure in business/job/studies, Land & Property Problems, Intrepration of dreams,dream analysis , family problems , lucky bank no , car no ,colour of cars ,name- based on numerology , stocks , commodity , bullion , forex speculations and investment based on numerology and planet inclinations
And in turn, it now seems to be the time for cyclical businesses. As mentioned in the Business Standard, automobiles, auto ancillary, cement, and capital goods sectors have all seen an increased proportion in mutual funds' holdings.
First it was the electoral victory of the Modi government. Then came the RBI booster of relaxation in cash reserve ratio (CRR) and Statutory Liquidity Ratio (SLR) on money raised for infrastructure financing. And finally, now it's a BRICS bank which will soon be a reality. The idea of floating such a bank was tossed by India way back in 2012. But it got a go ahead in the recent leadership summit at Brazil. The bank will be funding the infrastructure financing needs of the member countries. Considering the fact that traditional sources of bank funding were proving to be inadequate, an inter-country bank such as a BRICS bank, will help channelising funds from surplus countries to ones who are in need. Also, since infra financing needs are long term in nature, there was a constant need of some special institution like the one proposed which could be tailor made and has sufficient liquidity at its disposal.
We believe that with the setting up of this bank India's infrastructure dreams could get a further fillip. With a pro-reformist government at the Centre, India can tap liquidity needs from BRICS bank to plug its funding gap. This opens up a completely new source of funding for India. Now what matters is execution. For that, we also have a government in place. While it may be too early to comment on the execution prowess of the new government, we hope that it at least does better than the previous one on this front.
Real estate companies have been badly affected in the slowdown is quite well known. Quite a few of these companies have seen inventories pile up as buyers chose to stay on the sidelines. The fact that many pockets in the country continued to report high prices did nothing to bolster sales either. Sagging sales and bloated debt on their books means that real estate developers have been strapped for cash. One option to raise funds was through the IPO route. But although developers such as Lavasa and Lodha among many others announced their intention of filing IPOs, these never really took off. Indeed, as per an article in Firstpost, in 2011 six big ticket real estate IPOs were expected to raise over US$ 2.9 bn. But these plans were deferred. Volatility in the stock markets was one of the prime reasons for the same. And now that stock markets have been buoyant over the past few months, these real estate players are eyeing IPOs once again. Hence, once these IPOs hit the market, investors will need to remain cautious. Many of the IPOs typically tend to get overpriced and it is quite possible that this will be the case with real estate IPOs as well. Ultimately, the analysis for IPOs in no way defers than what you would do if you were to invest in already listed stocks. In other words, invest in the IPO only if you are convinced of the strength of the management and business model and only if the valuations are reasonable.
However, the fact is that the entire infrastructure pack has rallied as financing woes have been seemingly resolved. And it seems that the market is confident that execution shall take place with a decisive government at the Centre. As a result, valuations of infra stocks have sky rocketed. While prospects may be improving and strong for the infra space.
On the down side 7540 remains as good support levels whereas stiff resistance can be witnessed around 7725 levels.
Coming to the commodity markets gold , silver looks weak
Base metals too looks weak , whereas energy is a buy and looks strong
www.astroeyes.blogspot.in
Fridays wealth creators
Due to change in mercury to pisces technology and steel will out perform markets
BUY -Tcs 2400 ca , Idfc 160 ca , Petronet lng 180 ca
BUY - Hitachi home , j & k bank , kotak bank
BUY - NIFTY , BANK NIFTY , NIFTY 7600 CA
SELL GOLD , SILVER , COPPER
BUY CRUDE
The markets bounced as expected and closed above the intraday resistance levels.
Technically the markets looks fine and should continue the uptrend in the coming sessions with positive bias.
However, Defensives are the fall back options during times of gloom and uncertainty, till the end of last year, FMCG stocks were the preferred pack on the back of their stable growing businesses, improving financial performances, higher payout ratios, etc. Not to mention the lack other good areas to invest in at the time. And in the process, pretty much the entire sector's valuations sky rocketed.
However, in the year till date, the BSE-FMCG Index has been amongst the worst performers, rising by only 5% during this period. In comparison, the BSE-Capital Goodsand the BSE-Bankex indices are up by about 53% and 34% respectively.
It seems that a little over a month of the Modi government has completely changed the sentiments. And why not? After all, there are some signs of the scenario improving. These include higher commercial vehicle sales volumes, rising IIP numbers, improving trends in the manufacturing and services PMI, higher non-oil imports, all of which point towards the economy improving from here on.
And in the process, the focus has shifted away from FMCG stocks, it seems!
While higher valuations may be one aspect, it is believed that FMCG companies are likely to see pressure on volumes given the higher inflation levels and the reduction in discretionary spending.
Astrologically Hareeyali shravan shani dev amavasya is considered to be most auspicious and is celebrated with high gusto in north , south and west india with great enthusiasm , most of the flaws of people are nullified and they are blessed with happiness , security , health and wealth , so one must do thier best according to thier horoscopes on the day, the day falls on 26 july - saturday this year.
One right step towards astrology can change destiny.
All kinds of Business/job problems,education,higher studies, Career Problems, promotions , transfers, Problems of Marriage , delay in marriage , problems in marital life , Child Problems,Bad debt/loan Problems, legal /court problems, Depression , foreign migration problems,restlesness and frustration problems , failure in business/job/studies, Land & Property Problems, Intrepration of dreams,dream analysis , family problems , lucky bank no , car no ,colour of cars ,name- based on numerology , stocks , commodity , bullion , forex speculations and investment based on numerology and planet inclinations
And in turn, it now seems to be the time for cyclical businesses. As mentioned in the Business Standard, automobiles, auto ancillary, cement, and capital goods sectors have all seen an increased proportion in mutual funds' holdings.
First it was the electoral victory of the Modi government. Then came the RBI booster of relaxation in cash reserve ratio (CRR) and Statutory Liquidity Ratio (SLR) on money raised for infrastructure financing. And finally, now it's a BRICS bank which will soon be a reality. The idea of floating such a bank was tossed by India way back in 2012. But it got a go ahead in the recent leadership summit at Brazil. The bank will be funding the infrastructure financing needs of the member countries. Considering the fact that traditional sources of bank funding were proving to be inadequate, an inter-country bank such as a BRICS bank, will help channelising funds from surplus countries to ones who are in need. Also, since infra financing needs are long term in nature, there was a constant need of some special institution like the one proposed which could be tailor made and has sufficient liquidity at its disposal.
We believe that with the setting up of this bank India's infrastructure dreams could get a further fillip. With a pro-reformist government at the Centre, India can tap liquidity needs from BRICS bank to plug its funding gap. This opens up a completely new source of funding for India. Now what matters is execution. For that, we also have a government in place. While it may be too early to comment on the execution prowess of the new government, we hope that it at least does better than the previous one on this front.
Real estate companies have been badly affected in the slowdown is quite well known. Quite a few of these companies have seen inventories pile up as buyers chose to stay on the sidelines. The fact that many pockets in the country continued to report high prices did nothing to bolster sales either. Sagging sales and bloated debt on their books means that real estate developers have been strapped for cash. One option to raise funds was through the IPO route. But although developers such as Lavasa and Lodha among many others announced their intention of filing IPOs, these never really took off. Indeed, as per an article in Firstpost, in 2011 six big ticket real estate IPOs were expected to raise over US$ 2.9 bn. But these plans were deferred. Volatility in the stock markets was one of the prime reasons for the same. And now that stock markets have been buoyant over the past few months, these real estate players are eyeing IPOs once again. Hence, once these IPOs hit the market, investors will need to remain cautious. Many of the IPOs typically tend to get overpriced and it is quite possible that this will be the case with real estate IPOs as well. Ultimately, the analysis for IPOs in no way defers than what you would do if you were to invest in already listed stocks. In other words, invest in the IPO only if you are convinced of the strength of the management and business model and only if the valuations are reasonable.
However, the fact is that the entire infrastructure pack has rallied as financing woes have been seemingly resolved. And it seems that the market is confident that execution shall take place with a decisive government at the Centre. As a result, valuations of infra stocks have sky rocketed. While prospects may be improving and strong for the infra space.
On the down side 7540 remains as good support levels whereas stiff resistance can be witnessed around 7725 levels.
Coming to the commodity markets gold , silver looks weak
Base metals too looks weak , whereas energy is a buy and looks strong
www.astroeyes.blogspot.in
Fridays wealth creators
Due to change in mercury to pisces technology and steel will out perform markets
BUY -Tcs 2400 ca , Idfc 160 ca , Petronet lng 180 ca
BUY - Hitachi home , j & k bank , kotak bank
BUY - NIFTY , BANK NIFTY , NIFTY 7600 CA
SELL GOLD , SILVER , COPPER
BUY CRUDE
