Stocks likely to pull back after a slide on Friday Stocks are likely to pull back on Monday morning as the selling on Friday looks over done and on some bottom fishing by investors on the side lines. Expect the Sensex to pull back nearly 2 to 3 percent in toady's trade after a 11 percent drop on Friday.
Asian indices are likely to trade lower on opening bell as concern deepened that the financial crisis is dragging the global economy into recession. US stocks are likely to open higher tomorrow, as the Fed is likely to cut the rate in their meeting later this week. Today is a big day for the banking sector as two of the countries largest banks SBI and ICICI Bank Ltd are on the deck to report earnings today. The Q2 results announced to date are mixed with more than 60 percent of the companies that have reported earnings have registered a growth in profits YOY this quarter. This is low when compared to the growth rate in the previous year. Even though we have seen a drop in corporate earnings, one should really look at the valuations at which these companies are trading. >From a sectoral point of view, we like metals space now as the stocks in this sector have been beaten down substantially. For instance, the stocks of Tata Steel has declined by nearly 80 percent from its highs. Hindalco, NALCO and SAIL look attractive at the current valuations as the market has discounted the impact of falling commodity prices on the earnings of these firms. Most of the global markets which have fallen nearly 10 percent on Friday are likely to recover as stocks in US have fallen less than feared and the fall was so steep in Dalal Street that we might have reached a stage where most of the investors finally capitulated. It looks like the market has thrown in the towel and it is a great opportunity for investors in Cash to accumulate stocks through out the fall. Market Close Box: BSE Sensex 8701.07 -1070.63 NSE Nifty 2584.00 -359.15 USD Rs.49.95 Oil Nymex $64.15 B.Karthick Research Analyst. --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Kences1" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/kences1?hl=en -~----------~----~----~----~------~----~------~--~---
