Let's get Fiscal
The markets ended on a negative note after a positive weekly opening. The markets witnessed a weekly closing of around 0.5 per cent each. In the large cap sector, the gainers were SBI and Hindalco, which were up around 6 per cent and 5 per cent respectively.
The losers were the Technology major INFY, which was down around 4.62 per cent and Telecom major Bharti Airtel, which was down around 4.11 per cent. In the Mid-cap sector, the gainers were Allahabad bank, IVRCL Infra and MTNL with a weekly gain of 13.77 per cent, 13.14 per cent and 10.55 per cent respectively. The losers were OFSS and Divis Lab, which were down around 1.55 per cent and 1.47 per cent respectively.
After Moody’s and Goldman Sachs, Morgan Stanley also raised India’s growth forecast for the current financial year to 5.4 per cent from 5.1 per cent, which was projected earlier. The reason cited was the better GDP growth in the September quarter and the stabilization in non-agricultural growth indicators. But it did say that growth may be slowed due to challenging factors like higher inflation, current account deficit and loan deposit ratio. It also kept the GDP forecast for financial year unchanged at 6.2 per cent.
The Govt has been working to achieve its current fiscal disinvestment target of Rs 30,000 crore by coming out with more proposals. As per plan is government is planning to offload 10 per cent stake each in RINL, HAL, Oil India and NMDC. It is also planning to sell stakes of 12.15 per cent in NALCO, 10.82 per cent in SAIL, 9.5 per cent in NTPC and 9.33 per cent in MMTC. Another proposal of selling stake of 5 per cent stake in BHEL and 4.01 per cent in Hind Copper is also on the way.
The Govt. won the vote in both houses in Parliament in the FDI in multi-brand retail. The Govt. also defeated a motion seeking a modification in amendments to the FEMA that facilitates the entry of foreign companies in to multi-brand. After this, the Govt is likely to present the Banking Regulation Amendment bill and the Food Security Bill. The spot Nifty has immediate resistance at 6000 and it can even move up further towards the north slowly and steadily. The support level for Nifty stood at 5888 and 5846, with major support at 5805. HDFC, HDFC Bank, ICICI Bank and SBI are looking very positive in the charts and can buy both stock and options sessions of these stocks.
On the global front, the Chinese PMI rose to a 13 month high in November, which stood at 50.50 from 49.5 in October. Last week, Spain requested the European Union for a bailout worth 39.5 billion for four of its struggling banks. The US markets were trading mixed because of the concerns regarding the so- called fiscal cliff. The week also saw the ECB keeping its rates unchanged in its meeting and left hope of a rate cut in January 2013. In this week, important data to be watched for is IIP data, inflation data and the Indian manufacturing output.