Markets end lower during the week

The Indian stock market ended on a weak note, amidst sessions marked by volatility during the week, with the Sensex and Nifty ending lower by 1.4% and 1.5%, respectively. BSE mid-cap and small-cap indices also witnessed a decline but, on a comparative basis, outperformed their large-cap counterparts by ending lower by 0.3% and 1% during the week. The market traded in a narrow range but finally declined to close below the psychological mark of 18,000 on the BSE index. Factors such as the ongoing earnings season, mixed cues from European and US markets, Central Bank's decision to raise short-term interest rates and drop in food inflation to 9.7% weighed on investors' sentiment during the week. On the sectoral front, the performance was mixed, as there were equal number of sectors gaining and losing, with the BSE capital goods index and BSE oil and gas index losing the maximum of 4.8% and 3.5%, respectively. On the gaining side, BSE Bankex and the BSE FMCG index gained the most by 0.4% each.

BSE Bankex outperforms

The BSE Bankex outperformed the Sensex this week, ending up by 0.4%, as against the 1.4% decline of the Sensex. A large part of this outperformance was driven by strong movement in HDFC Bank, which was up on account of good 1QFY2011 results announced in the last week. On July 27, RBI's move on expected lines provided a sentimental comfort to banking stocks. Among others, BOB, BOI and PNB gave returns in the range of 2-4%. We maintain our positive outlook on the sector and retain HDFC Bank, ICICI Bank, Axis Bank and SBI as our top picks among the large caps; among the midcaps, we recommend Dena Bank and Uco Bank.

SKS Microfinance - IPO Note: SKS Microfinance (SKSMF) offers a high-quality play on India's vast Rs2.7lakh cr microfinance opportunity. SKSMF's core strength lies in effective risk management and governance, advanced technology, wide product portfolio, diversified sources of capital and strong pan-India distribution network, all of which have brought down the cost of credit to the poorest to amongst the lowest in the world, unlocking tremendous latent demand. We recommend a Subscribe to the issue.

RBI Policy Review: With an objective to control inflationary expectations, the RBI’s has raised the repo and reverse repo rates by 25bp and 50bp to 4.50% and 5.75%, respectively. The reduction in the spread between repo and reverse repo rates to 125bp (compared to 300bp in 2QFY2009) indicates the RBI's comfort on liquidity situation.

Dena Bank -1QFY2011 Result Update: In 1QFY2011, Dena Bank reported net profit growth of 20.7% yoy, ahead of our estimates, on account of higher-than-expected growth in net interest income. However, the sequential increase in gross NPAs was a key negative from the results. We maintain a Buy on the stock with a Target Price of Rs114.

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Where to invest your hard-earned money?

There are many investment options which are available in the market today. But, first you need to understand how to start investing and what to invest in.
Shares:
Shares are a type of security that represents the ownership in a company. Shares are traded in stock markets. Stock investment is a good long-term investment option as the returns on stocks over a long time horizon are generally higher than most other investment avenues. However, along with the possibility of greater returns comes greater risk. In India, stocks are traded on BSE and NSE. Sensex and Nifty are two popular indices which depict the stock market in India.
Mutual funds:
A mutual fund allows a group of people to pool their money together and have it professionally managed, in keeping with a predetermined investment objective. Mutual Funds are popular because of its cost-efficiency, risk-diversification, professional management and sound regulation. You can invest as little as Rs 100 per month in a mutual fund.
Bonds:
Bonds are fixed income instruments which are issued for the purpose of raising capital. Both private entities, such as companies, financial institutions, and the central or state government and other government institutions use this instrument as a means of garnering funds. Bonds issued by the Government carry the lowest level of risk but could deliver fair returns.
Deposits:
Investing in bank or post-office deposits is a very common way of securing surplus funds. These instruments are at the lowest end of the risk-return spectrum.
Real estate:
With the ever-increasing cost of land, real estate has emerged as a profitable investment proposition.
Gold:
The ‘yellow metal’ is a preferred investment option, particularly when markets are volatile. Today, beyond physical gold, a number of products like gold futures and gold exchange traded funds, which derive their value from the price of gold, are available for investment.

Weekly Review---April 12, 2010

Global fears bring markets below 18k

Amidst sessions marked by high volatility, the Indian stock markets gained during the current week of trade, with both the benchmark indices, the BSE Sensex and the NSE Nifty, ending higher by 1.4% and 1.3%, respectively. The BSE Mid- and Small-cap indices, however, continued to outperform their large cap counterparts, with both the indices gaining 3.2% and 4.1%, respectively. After touching 18,000 during intraday trade, the key benchmark indices slumped, as weak global stocks and worries about the economic health of Greece triggered profit taking. Besides, a spike in food price inflation also rekindled fears of a hike in key policy rates. On the sectoral front, most of the indices ended in the green, with the BSE Realty index gaining the maximum of 5.7%, followed by the BSE Auto index. However, the BSE IT index ended in the negative territory, losing 0.5%.

BSE IT Index - Rupee rise dampens the growth momentum

The BSE IT Index lost 0.5% over the previous week, underperforming the Sensex by 1.9%, mainly on account of the Rupee's appreciation (by 1.1%) vis-à-vis the US Dollar. IT companies such as TCS, Wipro, HCL Tech and Tech Mahindra declined by 1.9%, 1.5%, 3.8% and 1.1%, respectively, while Infosys and Mphasis gained a mere 0.3% each. During the 4QFY2010, the Rupee had witnessed a sequential appreciation of 1.6% against the US Dollar, 7.7% against the Euro and 5.9% against the GBP. We believe that this appreciation will result in lower realizations in Rupee terms, which will mute the growth in the reported currencies, thereby resulting in lower-than-expected earnings in 4QFY2010 by most of the IT companies. Our Top picks in the sector are Tech Mahindra and Mphasis.

McNally Bharat Engineering - Initiating Coverage:

McNally Bharat Engineering (MBE) is a leading and experienced turnkey solutions provider for the core sector. We believe that MBE is well-placed to take advantage of the burgeoning industrial capex on account of being a turnkey solutions provider and having a presence in the high-margin product business. We Initiate Coverage on the stock with a Buy recommendation and  Target Price of Rs467, implying a P/E of 14x on FY2012E EPS EPS.

3i Infotech:

3i Infotech has completed its QIP to raise Rs180cr through issuance of 2.29cr equity shares at the floor price of Rs78.6 per share.

Godrej Consumer Products (GCPL):

GCPL has sealed the deal to acquire the Megasari Group as well as its distribution arm, PT Intrasari, for an undisclosed amount (all-cash deal).

Jagran Prakashan (JPL):

The Blackstone Group is investing Rs225cr in Jagran Media Network Private Ltd, which will hold a majority share (promoter holding at 63% will get consolidated and transferred to this entity) in JPL.

Reliance Industries (RIL):

RIL has acquired 40% stake in Atlas Energy's Marcellus Shale gas position in a deal valued at US $1.7bn.

Open Trading Account Today!

Open an account with Angel broking and enjoy various valuable services for easy online trading.
Open Trading Account Today!

Indian Trading Through Internet

Investors around the globe are getting many investment opportunities through a sorted out way of investing in the Indian share market online.

Worldwide investors who put in their money in Indian share markets, have a feeling that the stock market India is a secure place to invest, as it is very challenging market in today’s world. The Indian stock market has the potential to defy every unnecessary economic emergency coming its way.

Every investor feels the need of having a sub broker to help him buy and sell shares in the share market. A sub broker charges commission i.e. brokerage fee for their service towards the investor. Brokerage is usually a percent of total amount of trade and varies from broker to broker. With accordance to trading in the share market, every trader or investor needs to have appropriate knowledge of the market Sensex conditions and knowhow of changing Share prices and levels of Nifty; this is possible by keeping a tab on the market news more often. The Sensex is an indicator of all the major companies of the BSE. The Nifty is an indicator of all the major companies of the NSE.

Market News serves you with the most up-to-date financial information from India ranging from the headlines, top survivals to the gainers and losers to the pioneers of the market along with its current statistics.

It doesn’t make a difference if you are a stock market layperson or an expert in the field, a small mistake could cost you a fortune in this game of trading, which happens on account of pure knowledge and market attention. To avoid doing such follies, you need to keep yourself updated and gather investment advice from the right personnel. Free stock research reports along with the right kind of investment advice from the apt source will give a free way to the investor in knowing that he would not be heading the wrong way. These free stock research reports are one of those instruments which are a weapon to a good investing plan that provides support and a hold on the way you invest and trade in online shares.

We at angel broking provide all these above mentioned facilities for the traders who register with us. Our sub broker is the largest in NSE and the training and support provided to the sub brokers under us, helps them help their clients in business. Free stock research reports and market news is provided on our site with utmost detailing not leaving any more room for doubts with regard to online share trading.

Happy investing with the share market ups and downs!!

Online Share Trading in India

THE ANGEL GROUP

Since its inception in 1987 Angel Broking has emerged as a premium Indian stock-broking and wealth management house, with an absolute focus on retail business and a commitment to providing “Real Value for Money” to its clients. The Angel Group is a member of the Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and the two leading Commodity Exchanges in the country i.e. NCDEX & MCX. Angel Broking is also registered as a Depository Participant with CDSL.

Promoted by Dinesh Thakkar Angel Broking started as a sub-broker business with a team-size of three. Today Team Angel has over 2500 direct employees functioning through a nation-wide network of 15 Regional hubs, 74 branches and 3 Private Client Group offices, as well as over 3600 sub-brokers & business associates. The retail business provides equity investment solutions to more than 3, 30,000 clients through multiple channels – retail outlets, the telephone and the internet platform.

While others measure their performance against the competition, at Angel Broking we conduct a private competition with ourselves, setting up our own personal challenges to exceed past performances. Our core strength lies in perfectly understanding the needs of retail investors as well as those of channel partners, and in working in tandem with these to achieve our corporate vision.

Our commitment to providing world-class broking services to the Indian investors, and a customer-centric work culture has led to several innovations in the areas of technology, processes & HR, all giving us an edge over the other players in the industry. Our clients value us for our strong research-led investment ideas, superior client servicing track record and exceptional execution skills.