Friday, October 8, 2010

Calm after the storm

Market open 15 min delay from 18 October

Indian equities are most likely to see a soft opening on Friday morning, after getting smashed in the final hour of trade yesterday. Wall Street closed flat on Thursday, nervous ahead of September jobs report on Friday. World's largest Aluminium manufacturere Alcoa (AA) beats expectations though Q3 net slipped 21 pct. Watch for hindalco in today's trade.

Japan approves stimulus worth 5.05 trillion yen

Japan's cabinet Friday approved compilation of an extra budget of 5.05 trillion yen ($61.3 billion) to stimulate the economy, larger than the 4.8 trillion yen initially planned. The government says the measures will add 0.6 percentage point to gross domestic product growth.

Nikkei is currently trading down 34 points or 0.35 percent.

Dalal Street - Jittery moves ahead?

Markets sold off in the final hour of trade yesterday. We believe the selling is a result of overheating in the market and there are no indications of any slowdown in the foreign inflows. But we expect the inflows to slow in the coming weeks resulting in choppy markets. Mutual funds might pull the plug after January 2011. We might be in for a feast in the next 6 months but sharp sell-offs are part of the game. Traders are advised to discount the volatility.