Friday, October 1, 2010

Stocks : A Positive Start to October

Dalal Street is all set to open in the green, a day after Ayodhya verdict and F&O expiry.

US Economy expanding

The United States economy grew only slightly in the second quarter, the Department of Commerce said yesterday, confirming that the pace of the economic recovery had slowed.

Gross domestic product (G.D.P) rose at an annual rate of 1.7 per cent in the quarter, marking a sharp decline from the first quarter, when growth hit 3.7 per cent.

Wall Street failed to capitalize of better than expected jobless numbers and GDP, only to close in the red.

Asian Markets

China's official purchasing mangers' index (PMI) jumped to 53.8 in September from 51.7 the previous month, giving a boost to Asian markets. Nikkei is currently trading up half percent

Dalal Street - Positive Start

Ayodhya verdict as expected had no impact thanks to a booming economy. We expect Dalal Street to greet the peaceful situation with a positive start and most likely a positive end. Investors are advised to look for sector rotation. BHEL is threatening for a breakout among largecaps.

If a financial newspaper's starts are believed to be correct, 35 pct of the FII's are yet to comply with SEBI's new regulation which comes into force today. There were reports that few FII's might leave the country due to the regulation which we believe is impossible, given the "Hot Indian" brand among global investment community.