Monday, August 30, 2010

Asia Bulls on a honeymoon,Indian stocks to gap up

Japanese benchmark index Nikkei spiked up considerably today on the back of short covering and BOJ meet. Japanese currency Yen is on a song in the last few weeks, hitting the country's exporters hard. BOJ(Bank of Japan) is most likely to take measures to curb the currency's dream run.

Dalal Street to gap up

D-Street is set to open higher today on the back of positive global cues. US Markets closed with a good gain on Friday and today Asian opens strong enough for Dalal Street bulls to prepare for a decent open.

Here is the catch while many of the global markets are in the midst of a correction, India just started the same. While for today's trade we are cautiously optimistic and bearish for the coming weeks. September might turn out deadly for Indian markets for various reasons.

Analysts expect India's GDP to top out for Apr-June quarter, we at DStreet agree on the same. Indian economy will go soft for next couple of quarters. But softening economy is definitely a good sign after a year and half period's dramatic rise. The softening economy will not deter foreign investments and in fact we believe every major sector in India will get re-rated in the next one year as we gear up for a multi-year bull run but not with out another correction creating confusion among investors

Stocks that are likely to witness action on Monday morning

DNA reports that DB Realty Ltd. is in talks with private equity firms for selling 20% stake in its Bandra Government Colony project

Sesa Goa Ltd. is planning to diversify into steelmaking with an investment of Rs 6,000-9,000 crore, in Orissa and Jharkand - BS

Public sector mining firms NMDC Ltd and Coal India are forming a joint venture with West Bengal Mineral Development and Trading Company to acquire one of the largest coal blocks in the country having reserves of around 19 billion tonnes - ET

Tech Mahindra Ltd. CEO Sanjay Kalra has resigned from the firm after spending around six years in its management.

Jay Shree Tea & Inds. Ltd. (JTIL), a BK Birla Group company, is eyeing tea estates in Rwanda.

PSU Oil India Ltd (OIL) is likely to form a joint venture (JV) with a US-based shale gas company to acquire shale gas assets globally, a top official said


Many stock specific stories are planted in the media and investors are advised to check the depth of fundamentals before taking a stab. We expect markets to gap up and lose some of its gains but close in the green today.

Read : 5 Notable stocks that resisted Friday's carnage

Glenmark Pharmaceuticals Ltd.
Kamat Hotels (India) Ltd.
DB Realty Ltd.
Spice Mobility Ltd.
Aarti Industries Ltd.