Post Market Commentary – 29th June 2012

Posted By : Kishore B.S

Friends,

Today was a Master Blaster day for Indian and World equity markets as the Euro crisis showed some positive signs of improvement.

The EU Council leaders reduced the debt repayment restriction schemes which were a sigh of relief for Spain, Greece and other EU countries. The bonds rate have come down which is a good sign for the EU countries as various nations would be looking forward to buy them at lower levels.

This shows that Indian markets are greatly driven by world market movements, Nifty opened @ 5139 and closed @ 5278, Sensex opened @ 16990 and closed @ 17429.This is a sign of positivism for investors who are holding long positions. Nifty is forming a strong support @ 5200 and 5400 is the expected target at the end of July.

Markets are still in the region of uncertainty so it’s better to stand by the concept of WHENEVER IN DOUBT STAY OUT. So it is better to wait for a clear confirmation for signs of recovery. The Gold imports price was reduced from 524/10 grams to 507/10 grams which is good news for the commodity markets.

Also the March quarter results were announced which showed a mix signs. Current account deficit is 4.2% of G.D.P and the gap of current account is due to slow GDP growth. Also the appreciation of rupee by 1.09%(& counting) is a great news for the markets as well as exporters. There has been news about disinvestment policy changes by SEBI which is good news, as liquidity positions will improve.

However the markets are still hugely banking on RBI’s rate cuts hopes which will give a further more boost and clear movement to the markets. Today’s Top gainers were Jindal steel, GMR infra, Tata power etc and losers were Cairn, BPCL , Coal India no other stocks were down in Nifty because of the good news in the markets.

So to conclude still need a clear up trend in the markets for the investors, but for traders it is a very good platform. Monday let’s hope the markets to do well, Let us wait and watch how it goes…

(Inputs Mr. Karan Chandrashekar & Mr. Mukesh, SMI Associates, Bangalore)

Cheers!!

Team SMI

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