Post Market Commentary – 10th July 2012

Posted By : Kishore B.S


After a subdued performance yesterday, the markets sprung up as the bulls outclassed the
bears. The European markets shot up with the decision of EU council to speed $123 billion aid
to Spanish banks boosting the Indian markets where Sensex was up by 226 points and Nifty
was up by 70 points.

Also Spain’s 10year bond rose above 7% threshold that prompted bailouts in Greece, Ireland ,
& Portugal. However Chinese markets touched a 6month low due to slow growth in exports and
extravagant rise in imports which had a drastic impact on the Asian markets as they performed
negatively. Oil prices fell for the 3rd time in 4days as the strike in Norway about the halt in
production ended today.

Coming back home, Optimism led market rally as industrial output accelerated to a modest
pace of 1.8% YoY in May which will have a positive impact on industrial sector. The RBI’s policy
review draws closer, expectations are building up that key rates are unlikely to be moved this
time. State elections are coming up and the policy makers are likely to be affected and the
Government’s fiscal management is difficult but a key factor for the imbalanced economy. Also
the weak monsoon will affect the Indian economy as a whole.

Rubber prices fell drastically hence yielding companies like Apollo tyres. SBI has been forming
continuous head & shoulder patterns so is giving a buy call. No FCCB liability in near term
maturity in 2017(SUBEX), the company had issued the bonds recently.

Top gainers : Axis Bank, PNB, JP associates, Reliance Infra, Bank of Baroda

Top losers: ACC, Wipro

Markets however showing positive signs they have not yet broken out of the range(5400-
5200).So still not a crystal clear time to enter and it’s better to wait patiently.

(Inputs: Mr. Kishan & Mr. Karan, Research Team, Stock Market Institute, Bangalore)


Team SMI

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