Diwali boosts October car sales, US Dollar loses steam

Wall Street closed marginally higher on wednesday as the US Dollar slipped from one month highs against other major global currencies. The Fed’s plan to buy U.S. bonds in a bid to push interest rates down to spur spending and bank lending has had the dollar weakening against other currencies, making U.S. exports less expensive to holders of other currencies.

Asian markets are trading in the green with Nikkei leading the way on weaker Yen. Australia's unemployment rate unexpectedly rises to 5.4%, a little above estimates.

October car sales surge

October sales increased 38% to 182,992 vehicles from 132,615 a year earlier, according to data issued Wednesday by the SIAM (Society of Indian Automobile Manufacturers), an industry lobby group. October was the fifth-straight month of record car sales, outpacing the previous high of 169,082 sales in September.

In other news IT giant Infosys Technologies Ltd , India's second-largest outsourcing firm, said on Wednesday it was looking for acquisitions in Japan.

Nifty - News highs a teaser

Markets are finding it tough to spike from the last three trading sessions. We believe the cheap dollars will continue to flow into Dalal Street and it is just a matter of time we see new highs. A strong Realty and Infrastructure stock rally is round the corner. Place your bets here.

Expect Indian markets to trade positively today and volatility might die down

Tata Motors stellar Q2 likely to push Indices higher

Dalal Street is likely to open in the green today and make an attempt to conquer new highs after Tata Motors announced excellent Q2.

Wall Street suffered a rare pullback on Tuesday as bank stocks dropped and worries about Europe's debt mess continue to resurface, sparking heavy selling of the closely-watched euro.

Asian markets are trading in the green and is likely to boost Dalal Street.

Tata Motors - Superb Q2

Tata Motors reported its highest-ever quarterly profit, boosted by a 43% jump in revenue at the Jaguar Land Rover unit in the UK, topping analysts forecasts. Shares zoomed nearly 3% to a record high of Rs 1,271 on the BSE. The company announced the results after market hours.

Tata Motors saw its total revenue increase 37% to Rs 28, 782 crore in the quarter. Tata Motors CFO C Ramakrishnan attributed the increase in earnings to strong volume growth across trucks, buses and cars, price increases and continued cost reduction efforts.

Hindaclo's Q2 - Inline with expectations

India’s largest aluminum producer Hindalco Industries posted a 26% increase in standalone net profit due to higher realisations from aluminum during the second quarter. The company’s net profit jumped to Rs434 crore in the July-September quarter as against Rs344 crore a year earlier.

Stock might witness a cool-off in today's trade.

Markets - All time highs ?

Markets are all set to conquer all time highs and might even shoot up further in the coming days. After the final hour push into the positive territory, Nifty looks strong for an upmove. Realty and Infrastructure are the two dark horse sectors on the street. Keep an eye

SBI Q2 below estimates, Bank stocks might witness pressure

Dalal Street is likely to open marginally in the negative territory on account of flattish global cues and below par Q2 numbers from the banking giant State Bank of India.

Wall Street closed flat on Monday as US Dollar rose sharply against a basket of currencies.

Officials from several countries have criticized the Fed's bond-buying program amid concerns that it will spark asset bubbles in emerging economies. Representatives in Germany, Brazil, South Africa and China have voiced objections to the plan and argued that it could lead to a surge in commodity prices.

Asian markets are trading in marginally the red on Tuesday morning.

State Bank of India disappoints

State Bank of India's Q2 net profit turned was at Rs 2,501.37 crore, up from Rs 2,490.04 crore a year earlier. The poor show was due to meeting higher provisioning norms. Both the treasury and corporate banking faired poorly.

The dismal show might hit the banking sector badly and one should wait and see how the street takes the numbers.

All time highs in question ?

With poor results from SBI, it would be a herculean task for the markets to cross the highs now. We believe only one stock should make the difference and it is none other than Reliance Industtries which is looking terrific on charts. Other stock that grabbed our attention yesterday was Unitech on the positive side.

We believe it is only a matter of time before the Markets conquer new highs. Stay invested

Coal India listing today, PSU stocks might hog limelight

On expected lines US Ferderal Reserve promised new $600 billion bond-buying spree to rescue US economy from further slide.

This is the second time the Fed has engaged in quantitative easing, as it snapped up $1.7 trillion in mostly housing-related assets between December 2008 and March 2010.

While the US Economy is growing at snail's pace, high 9.6% rate of unemployment might push the economy into deflation.

Asian Markets spurt

Japan's Nikkei is trading up 180 points (2 pct) on weaker Yen while Australia jumped half percent. In a surprising move Canadian government late Wednesday rejected Anglo-Australian miner BHP Billiton’s $38.6-billion bid for Potash Corp. of Saskatchewan.

All eyes on Coal India

Coal India is likely to list around Rs 280 levels (current grey market price) against the offer price of Rs 245. After initial selling pressure, the stock might take off but do not expect move beyond Rs 320 levels.

While QE2 had a positive impact on global markets, Nifty is looking bullish at these levels except for it has to close above this level one more time.

QE2 policy minutes to decide global market direction

Dalal Street might open marginally in the green, discounting the 25 bps Repo and Reverse Repo rate hike from RBI.

Wall Street closed up on Tuesday on anticipation of the stimulus that has helped fuel a rally of nearly 12% in the Dow since the end of August as well as a swoon in the dollar. The dollar continued to slump on Tuesday.

Asian markets are trading flat to positive on Wednesday morning.

Soverign Debt - Staging a come back ?

The debt crisis that shook the world six months back seems to be back in the reckoning. On Tuesday, Irish credit costs surged to a record high and bond prices tumbled. Credit-default spreads, popularly called as CDS for Irish sovereign debt jumped 22 basis points to 5.20 percentage points, and hit 5.30 percentage points, a record high.

Lets get our heads turned towards Europe in the coming days.

RBI delivers, Will US Fed deliver ?

All eyes will be eagerly watching Ben Bernanke's policy decision after 02:15 PM EST. Fed is expected to announce a new program of bond buying, known as quantitative easing (W'Street is referring to this policy as QE2), because they are worried the economy could slip into deflation.

DStreet US Analyst Satish Bhogadi says "We expect the Fed to lend helping hand for one last time i.e using QE2. Stock markets might see another rally. Though interest rate futures suggest US might not raise rates till 2012, we believe there is a surprise in store in the first half of 2011."

Expect a positive session today

All roads lead to Reserve Bank policy meeting

Wall Street closed flat despite of higher ISM data, on concerns that Fed might not adopt aggressive quantitative easing. Asian stocks are mixed, waiting for a response from US Federal Reserve, expected on Wednesday 03rd November.

RBI policy meeting

India's central bank RBI will unveil credit policy on back of higher inflation, gush of liquidity. We expect RBI to let go with a minor hike of 25 basis points this time. But RBI might talk tough on inflows which will daunt the markets.

DStreet experts are extremely bullish, the way RBI is handling the situation and all roads are leading to a golden era for Indian equities. We have a long and strong target of 35000 for Sensex by 2014 based on earnings growth and higher valuation India might command. But we are afraid we might hit the levels much earlier.

Stay invested but before pumping new funds we advice investors to wait till Diwali which might give us crystal clear picture of the impact of Fed QE2 (Quantitative Easing).

Markets clock record turnover of Rs 2.82 lakh crore on the expiry day

Dalal Street underperformed the global equity markets this week, thanks to F&O expiry on thursday, only to see Asian peers sliding on Friday. Wall Street closed flat after Dow lost more than 100 points at one point of time.

Nikkei is trading down on Friday morning due to continued strength in the yen while Australia is trading marginally down.

Q2 Numbers - No major impact

While Q2 numbers were inline with market expectations, stocks started feeling the heat after announcement of numbers. We believe markets have discounted the current Q2 numbers way before. Except for fund inflows we do not see any other major reason for the markets to go up. Refunds will hit the market anytime and there is an absolute reason to be bullish.

Textile Stocks

Despite of strong raw material costs in the form of rising cotton price, textile stocks are buzzing on the street as retail business is picking up and partly due to monetizing their land banks.

We expect this sector to extend the current rally and might see a multi-year rally with intermediate corrections