Asset sales have helped ease investors' worry but debt remains at alarming levels
Short sellers may capitalise on the weak sentiment owing to the dispute between co-founders Rana Kapoor and Madhu Kapur.
The combined market capitalisation of the two listed companies of the Sahara group whose assets have been ordered frozen by the Securities and Exchnage Board of India is just Rs 230 crore.
Interview with CMD, Motilal Oswal Financial Services
This time its international business is in the limelight.
While slowing earnings growth has seen the ratio fall to 64%, more reforms, lower interest rates could improve the equation.
Analysts believe that investors will remain cautious this week ahead of results of HDFC and Infosys.
Some state-run banks made 10,000-13,000 per cent gains on their holdings in the Multi Commodity Exchange (MCX) after the latter commodity bourse made an impressive listing on Friday.
More pain likely, say analysts, with gloomy demand scenario and slowing economy.
India's weight in the emerging market portfolios of foreign institutional investors (FIIs) has risen by about 100 basis points in June to 7.96 per cent as compared to May.
Importantly, after the interest rate rises by the Reserve Bank of India (RBI) in the recent past, there is a high probability of corporate India getting hit on profits.
Companies together have lost about Rs 20,000 crore (Rs 200 billion) in market value since the arrest of former telecom minister, A Raja, leading to historically low valuations.
Management quality and issue price are key concerns for investors; over 60 per cent of the issues this financial year are trading below issue price.
While experts suggest that the outlook remains positive, there is also a need to be cautious due to the sharp rise in prices and the fact that markets have already started to factor in 2011-12 earnings.
The IMD dispelled fears by forecasting a normal monsoon for June-September. Rainfall is expected to be 98 per cent of the long period average, significantly higher compared to last year's 77 per cent LPA.
Monetary policy measures give temporary respite to rate-sensitive companies.
The steel sector's fortunes are very closely linked with growth in the economy and industrial activities in the country. The consumption of steel in India and globally has been growing over decades except for a few years of economic slowdown.
Expect markets to remain volatile as the poll dates come closer as well as if uncertainty prevails post-May 2009.
With growing concerns over global economic growth and further cuts in earnings estimates, a recovery in markets is not expected before end-2009.
Stick to disciplined investing. Do your homework thoroughly before committing your funds or you will be speculating. This is not advisable on both counts of managing risk and enhancing returns. Preferably, add companies that are leaders in their respective businesses. The companies should have reasonably decent prospects, sound management and strong entry barriers, apart from healthy financials that will help them tide the current rough patch.
© 2025 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances