panch-tattva talk…


The Fridays have seen market indices go up by a better margin than the rest of the days of the week. In fact the upmoves of big sizes come due to short covering and on Fridays the short covering is resorted to more often in bullish times out of fear about keeping open short positions. More than this nothing much should be read in to this phenomenon.

BoB is planning to aquire a Malayasian Bank. This will enable it to expand business in Malayasia as otherwise the govt there is strict about giving branch expansion licences to foreign bank. Malayasian-Indian trade is seeing expansion every passing year.

FIIs have infused Rs 24k crs in Indian stock markets in first 100 days of UPA’s second innings.

The exports from Tirupur, the knitwear capital of India, have scaled up from Rs 180crs in 1986 to Rs 11000 crs in 2007. This is enough proof that India can match export performance of China easily.

India’s leading steel producers namely ‘tatasteel’ and ‘sail’ have good times ahead and may be bought into at present level of equity prices. Both have shown better performance in July 09. The per capita steel consumption is to rise to 54kgs by 11-12 from 44kgs now. What is more is that now India is the third largest producer after China and Japan. The ‘corus’ aquisition is not going to be worrying Tatas any more because it is slated to raise production to 80pc of capacity against 50pc in recent past.

The auto-sector scrips have advanced most in last 12 months (48pc) and second and third place are PSUs (29pc) and Banks (27pc). The sectors with negative performance are Consumer Durables, Realty and Healthcare. In fact all three should see better times ahead.

Nifty had closed at 4732 on Friday,the 28th August 09. The Asian markets have opened lower and so may the markets in India. If the drop is too stark, it should be taken as an opportunity to enter afresh.


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