Sensex set to cross 10,000 level today
===================================================Stocks are likely to extend their gains after more than a 8 percent gain in the Sensex on Friday. The market is likely to have a gap up opening today as investors are likely to cheer the move by RBI to slash the rates. Expect a 2 to 3 percent up move in the Sensex in the morning session. In a surprising move to boost the ailing economy and the stock markets, the RBI slashed the repurchase rate again, lowering it by 50 basis points to 7.5 percent. The centrak bank also reduced the amount of deposits that lenders need to set aside as cash reserves to 5.5 percent from 6.5 percent, and in government debt to 24 percent from 25 percent. Things look way better than the last 2 months as FII's who have abandoned the emerging markets have started coming back as funds started to flow in, thanks to the moves from RBI. Rupee is likely to strengthen against the US dollar as demand for the rupee is likely to improve in the coming days. Steel stocks might see some activity this morning as the Union Government is mulling further rationalisation of duty as a means to provide relief to the country’s steel industry. Tata Steel and JSW Steel are good picks for investors who would like to get a piece of the action in this sector. Now market participants see the next target of the Sensex at 12,500.00, which is nearly 30 percent from the current levels. We believe that the levels do not matter in the current market, as it is a good practice to look at indvidual stocks and their valuations. Overall a good day for the markets and investors are advised not to buy aggressively on the way up. N.Sukumar Research Analyst www.kences1.blogspot.com --~--~---------~--~----~------------~-------~--~----~ 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 -~----------~----~----~----~------~----~------~--~---
