The markets have been unable to sustain at higher levels as a rise in bond yields globally, especially in the US have dented sentiment. Surging commodity prices, especially crude oil that have now hit $70 a barrel (Brent) coupled with inflation woes and fear of sporadic lockdown across major economic hubs back home as Covid cases rise have chased the bulls away. In the short-term, analysts expect the markets to remain volatile as they react to news flow - both from overseas and developments back home. Investors, they say, need to keep a tab on how the US treasury yields move, which in turn will have a ripple effect on how big money moves across developed (DMs) and emerging markets (EMs), including India.
There is a lot of optimism as regards the defence, railway and manufacturing sectors.
'The market was expecting the Budget to do more, given the domestic economic slowdown and global uncertainty. Over the next few days, the market is expected to absorb the volatility.'
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Stock market expert Pranav Sanghavi, director, Jitendra Harjivandas Securities (P) Ltd, offers some valuable tips on the stock market.
Market expert Pranav Sanghavi offers some valuable tips.
In an hour-long chat on rediff.com on Wednesday, market expert Pranav Sanghavi replied to many such readers' queries.
Wait for a minor dip before making investments, says market expert Pranav Sanghavi. With the property markets expected to slump by 10 to 20% along with high interest rates make it a tough proposition for housing finance companies. Crompton could surely be lookd at with a 6 to 12 month outlook.
Market expert Pranav Sanghavi offers some valuable tips on stocks.
Market expert Pranav Sanghavi offers tips on how to trade when the markets are volatile.
The CRR hike will clean out most of the liquidity in the markets. Money would be much tighter and hopefully the inflation too would come down, says market expert Pranav Sanghavi.
Market chat expert Pranav Sanghavi offers some valuable tips on stock market.
If you are a long term investor you could start buying small quantities on every dip. In the short term, the markets do look weak and could only move up beyond a consolidation phase. This could take two to six months depending on global and local factors, says market expert Pranav Sanghavi.
Market players don't expect any major benefits or negative policy for the corporate sector, says market expert Pranav Sanghavi.
Currently all stocks are overheated. I would rather wait for a dip to get into the market, says market expert Pranav Sanghavi.
I think this time around the markets will take that much more time to consolidate and ride back up. We have hardly ever been in a bearish phase over the last 3 to 4 years. So even if we take 4 to 5 months to get back to a bullish phase it is fine and only healthy for the markets, says market expert Pranav Sanghavi.
Tech stocks will perform well in the longer term, says market expert Pranav Sanghavi.
Day trading is definitely risky if you are not completely aware of the markets. It could have disastrous results. Investing and holding is always a better method, says market expert Pranav Sanghavi.
TIll the dollar continues to weaken the IT pack may not outperform the markets. They already have recovered about 15 per cent from their lows, says market expert Pranav Sanghavi.
The Auto segment is facing a higher interest rate scenario currently but eventually when the interest rates do come down a bit the auto segment should outperform as there is good potential for growth in the sector, says market expert Pranav Sanghavi.
Hold on to major infrastructure stocks for some time, advises market expert Pranav Sanghavi. With the growth in the infrastructure development in our country they should benefit to an extent from the construction boom.
In this bearing market, one must hold on to fertiliser stocks, says market expert Pranav Sanghavi.
Transcript of the chat with market expert Pranav Sanghavi.
I feel by September the interest rates should start moving downwards which would further boost the markets, says market expert Pranav Sanghavi.
Since 2005, in 8 out of 10 years (except in CY11 and CY14) the benchmark indices have given positive returns in December.
With a rise of around 30 per cent in the benchmark index S&P BSE Sensex, 2014 has been the best year for Indian equity markets since 2009, when the benchmark index surged 81 per cent.
Experts suggest domestic factors rather than the Greece crisis would determine the course of the Indian equities.
Cryptocurrency exchanges face issues with their current bank accounts.
Indian markets rose 19 per cent in the first half of this financial year, the best performance by any market during this period, globally.
Analysts expect global markets to remain in consolidation mode with a negative bias over the next six months.
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TCS, Infosys and Wipro were down 0.4-2% each. Capital goods majors also ended lower with L&T and BHEL down 1.4-3.9% each.
Experts believe market launches can now happen seamlessly and quickly if FSSAI is removed from the process.
Sensex remained volatile through the day.
Analysts agree China, Greece and US Fed developments need careful monitoring but India should gain, over time, from relative rise of the dollar and fall in commodity prices.
Reliance Industries was the top Sensex gainer up 5.6% after the company reported better-than-expected net profit growth at 12% in the second-quarter aided hby higher gross refining margins.