 Markets riding on positive newsPublished on Wed, May 30, 2007 at 12:41 | Source : Moneycontrol.com Updated at Fri, Jun 01, 2007 at 12:02 1810 Investors following Insecticides India. Share this News with them.
Things are looking hunky dory for the markets with deals happening every other day and with quite a few issues in the pipeline. Inflation is also under control and corporates have given a fairly good earnings. Since May 16 markets have been trading above 14000 levels. Quite a number of deals have been struck during this period. To name some, directors of Coca-Cola Co have approved the purchase of vitamin water maker Glaceau for USD 4.2 billion in cash and Coke stock. Viacom and TV18 Group have formed a 50-50 Joint venture in India called Viacom-18. The joint venture will launch a Hindi general entertainment channel within a year and will have locally produced programmes. The recent buzz is that Best Buy is likely to get into a partnership with Vivek Ltd to enter India. Vivek operates one of the largest consumer electronics and home appliances retail chains in the country with more than 52 stores.
With the secondary market being so active with deals and M&As, why will primary market be left behind. Primary market is seeing action with the much awaited IPO to get listed in the first week of June.
The DLF issue is going to open on June 11and experts like Phalguni Nayar, MD, Kotak Investment Banking feels that DLF is fundamentally very sound and the pricing is attractive.
Today Two companies, MIC Electronics and Insecticides India got listed. MIC Electronics debuted with 75% premium and Insecticides India listed below its issue price. Inflation was at 5.27% versus 5.44% for the week ended May12.
Experts are satisfied with India inc's performance last quarter. The total 1800 companies that have come out with their earnings, revenues for the March quarter of 2006-07 grew about 26% while earnings increased by about 43% YoY.
But experts have a mixed view on whether markets will continue riding on these positive developments.
While, Portfolio Manager PN Vijay said that inflation is under control and the feel-good factor has come back into the markets, Pathik Gandotra, Head of Research at SSKI says the market may witness pressure due to one more CRR rate hike and that the large issue pipeline is a concern as market may not be able to absorb it.
Vijay said, "There are three macros that primarily drive the market. The growth in GDP has been pretty good, inflation is under control, the interest rates spiral seems to be over and the rupee is very strong. The feel-good factor has come back into the markets. People are now putting more money into the market and the sentiments are indeed pretty good," he added.
Gandotra further feels that the market is likely to consolidate as the earning season draws to a close.
Today China tripling its stamp duty from 0.1% to 0.3% is making the Asian markets trade in red. The Nikkei is trading at 17,631.56, down 41 points, and Kospi is down 11.93 points at 1,649.87.
So enjoy the markets till there are positive developments coming in as you never know when things change.
By-Piyu Sen
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Tags: Coca-Cola Co , Glaceau, Viacom, TV18 Group , Best Buy , Vivek Ltd, Inflation, PN Vijay , Pathik Gandotra, SSKI , China |
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