Market Mantra:
There is no second opinon that the Indian markets will open in the green today, with most of the Global Ccues coming is positve till now. The markets will be volatile due to F & Settlement tomorrow. But more less all the factors are positive for the further upmove of the indices. There will also be huge buying in the Small and mid Cap counters--which is now the most happening sector.
IF we consider the P/E of the Sensex during the Bull run of Harshad Mehta time then then the valuations not at all too high. Also if we consider, that Q2 results will be very strong then the markets should remain firm. But at 3600 on Nifty there are some strong resistance, if the index moves past this level then we can see further higher levels of indices.
Meanwhile, Dow Jones Industrial Average is almost near its 2000. Wall Street yesterday advanced for a third straight session, with the Dow Jones industrial average falling just short of touching its record high close after a jump in oil prices stifled investors' enthusiasm.
Falling crude oil prices and an increase in new home sales had helped investors shrug off a weak durable goods report earlier in the session, putting the Dow 33.74 points away from the closing record of 11,722.98 it set on Jan. 14, 2000.
"I think most of the activity is this push to make a close at all-time highs," Ryan Larson, senior equity trader at Voyageur Asset Management, said of much of Wednesday's early movement. He contends Wall Street's expectation that it would surpass the record drove stocks before investors grew wary in part by the rise in oil prices.
"I think it was a little bit exhausted," he said of the idea of a record-breaking day. He said, however, that the market's gains shouldn't be ignored and that optimism remains.
The Dow closed up 19.85, or 0.17 %, at 11,689.24, its second-best close ever. The Dow has gained 181.14 points over the past three sessions.
Broader stock indicators also moved higher. The Standard & Poor's 500 index rose 0.25, or 0.02 %, to 1,336.59, and the Nasdaq composite index advanced 2.05, or 0.09 %, to 2263.39.
Some good news came in a report that new home sales rose 4.1 percent in August, their biggest increase in five months. The Commerce Department data raised hopes that a sharp decline in the housing industry could be easing.
Wall Street's advance this week, which followed several weeks of sometimes fitful gains, has been fed by growing signs that the economy is moderating, not headed for a hard landing.
"The economy has been doing well and yet the market hadn't been in step with that because we had the specter of high interest rates and rising energy prices.
"As long as we can continue to see that economic data stream remain relatively positive I think we can continue," he said.
Investors have grown more confident in the strength of the economy after the Federal Reserve has signaled interest rates are in check for now and as oil prices have fallen more than 20 percent since July.
Advancing issues outnumbered decliners by roughly 2 to 1 on the New York Stock Exchange, where consolidated volume came to 2.76 billion shares, compared with 2.75 billion Tuesday.
The Russell 2000 index of smaller companies was up 2.93, or 0.40 percent, at 732.54.
Asian Stocks Rise on U.S. :
Asian stocks rose, set for a three- week high, after a rebound in U.S. home sales boosted confidence consumer spending in the world's largest economy will remain strong. Toyota Motor Corp. and Samsung Electronics Co. advanced.
The Morgan Stanley Capital International Asia-Pacific Index climbed 0.4 percent to 128.41 as of 11:20 a.m. in Tokyo, set for its highest since Sept. 8. Japan's Nikkei 225 Stock Average added 0.3 percent to 15,989.11. Stock indexes advanced around the region, except in Taiwan.
Earlier U.S. shares rallied for a third day in New York, pushing the Dow Jones Industrial Average to within 0.3 percent of its 2000 record. New home purchases in the U.S. jumped 4.1 percent in August to an annual pace of 1.05 million, the Commerce Department said yesterday. Economists forecast sales of 1.04 million in a survey by a news agency.
``Concerns that the U.S. will experience a hard landing are retreating,'' said Hiroichi Nishi, an equities manager at Nikko Cordial Securities Inc. in Tokyo.
Crude oil for November delivery rose 3.2 percent to close at $62.96 a barrel in New York, the biggest climb since March 23. Oil touched a six-month low of $59.52 on Sept. 25 in New York. The contract recently changed hands at $63.17 in after-hours electronic trading.
FII Activity:
FIIs were net buyers both in the F & O and Cash markets. Domestic Funds were also net buyers on Tuesday. We might see further upside in the Sensex..."There is lot of value in lot of stock", said Amitabh Chakraborty, BRICS Securities. [With Inputs from Internet]
HOPE U HAVE READ MY CLARIFICATION ON VARIOUS GROUPS ON PIONEER DISTIALLARIES LTD. KEEP HOLDING ALL UR POSITIONS........
Best wishes,
Suman Mukherjee
India.
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