Mixed global cues greet Dalal Street when it opens for trade on Monday. Asian markets are largely in the red except one or two markets. Australia after opening in the red moved swiftly into green after the country's general election is headed towards a hung. Expectations are building up on new government to abolish the mining tax. US markets recovered from the lows of the day but still ended in red on Friday.
Global M&A deals are on the rise. Reports suggest world's No. 2 beer maker SABMiller PLC is interested in Foster's Group Ltd., the largest brewer in Australia with the approximate deal value pegged at USD 10.9 billion
What is the next theme ?
DStreet Analysts still feel there is some more steam in the sector rotation theme and there are two possible themes after sector rotation, while one is the group theme and then the small cap theme. We have seen the group theme kicked out on Friday with Jindal group stocks jumping from no where. Other major groups include Birla, Tata, Ambani and few more. And finally the small cap theme which might mark the end of the current bull run at least for the short term.
Under performing Sectors
Sectors that are under performing the market include Shipping, Power, Infrastructure, Hotels, Metals etc. We acknowledge that the pep-talk among the FII community is turning bearish on India or Overbought. Investors are advised to stay cautious but medium term outlook remains bullish