Dalal Street will wake up to a pleasant wednesday morning breeze full of positive global cues.
BHP-Potash bid : What is the take away ?
BHP Billiton, a global mining major has surprised everyone bidding for Potash Corp. of Saskatchewan, world's biggest potash producer. Potash rebuffed the deal later. The key take away from this is the interest global majors are showing on Food industry. Recently Russia banned wheat exports citing drought as a reason. Indian agri commodity stocks are already on the run and analysts at DStreet are extremely positive on this space.
Nagarjuna Fertilizers & Chemicals Ltd., United Phosphorus Ltd. and Chambal Fertilisers & Chemicals Ltd. should see some interest on the back of this news.
Strong opening, how about the close ?
Markets will open strongly but latching on the gains is a tough thing. Given the market movement in the last 15 days Indian markets are clearly holding to a tight band. So as an investor let us not get too excited with the global positives.
Rumours that Cairn India Ltd. might see a counter bid from Oil & Natural Gas Corpn. Ltd. (ONGC) might keep the stock buzzing but we do not expect fireworks here. Sector rotation and catching up theory is in the works on dalal street. Stocks like New Delhi Television Ltd. (NDTV), India Infoline Ltd. were no where in the picture till yesterday.
DStreet market analyst Sridhar Iyer says "We expect the midcaps to extend their run for the next 1-2 months with minor setbacks. October is the month to watch out for the Index stocks. We still find few bargains in the market in the midcap space.