Green Shoots turning brown, Another day of pain on the cards Concerns about a lengthy recession is back in focus as investors wonder about the recovery in the economy. Expect a massive sell off in the first hour of trade, as negative global cues might take a toll on stock prices. The Sensex is likely to give up more than 2 percent or 300 points after a sell off on Monday.
A surprisingly bleak forecast for the world economy pushed stocks to their biggest loss in two months on Wall Street. he Dow fell 200.72, or 2.4 percent, to 8,339.01, the Standard & Poor's 500 index fell 28.19, or 3.1 percent, to 893.04 and the Nasdaq composite index fell 61.28, or 3.4 percent, to 1,766.19. A weaker than expected growth forecasts from the world bank is a big dampener for the markets today. The World Bank said it expects the global economy will shrink 2.9% this year, a deeper fall than the 1.7% contraction it forecast in March. There was a major sell off in commodities market today. In the metals market, prices for July silver and platinum each lost 3.4% and copper contract for that month slid 5.3%. Stocks in this sector are likely to take a beating today. Watch out big price movement in Tata Steel, Sterlite Ind and Hindalco to the downside. There are rumors in the market that IFCI, is looking to rake in a partner and is considering various possibilities. We think that this far from happening and any up move in the stock could be used to exit the stock in the short term. Investors are also advised to stay away from speculative midcaps in the current market scenario. On the flip side, we believe that the current correction will provide long term investors to 'accumulate' select stocks. We like some stocks in Healthcare and some select 'value' stocks which could provide a decent gains in the run up to the budget. We advise day traders to take small positions after a drop of nearly 2.5 percent on the Sensex as there is a possibility of a minor pull back. 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 -~----------~----~----~----~------~----~------~--~---
