Expect IT cos to post weak Q3 results: Dilip Bang
The past fortnight was dominated by news on fiscal cliff in the US. As the year drew to a close, the US reached a deal at the eleventh hour to avert huge New Year tax hikes and spending cuts, known as fiscal cliff, which would have otherwise sent the US economy into recession.
January 05, 2013 / 17:12 IST
By Dilip Bang of Nirmal Bang
The past fortnight was dominated by news on fiscal cliff in the US. As the year drew to a close, the US reached a deal at the eleventh hour to avert huge New Year tax hikes and spending cuts, known as fiscal cliff, which would have otherwise sent the US economy into recession.The deal between the White House and Congressional Republicans would raise taxes on the richest Americans but exempt everyone else. This extension will allow the US to put off the USD 109 billion in budget cuts across the government for two months. The Chinese economy too is witnessing a revival.There was some cheer on the Indian front too. FIIs continue to be on a buying mode. And inflation for the month of November too showed signs of improvement. It decreased month-on-month despite expectations of a rise in inflation by the RBI.Also, the Index of Industrial Production (IIP) grew 8.2% in October, compared to a negative 0.4% in September, beating estimates by analysts. However, since core sector growth has not been good, IIP numbers for November may not be as good as in the past.Further, the RBI kept key rates unchanged in its mid-quarter monetary policy. While the repo rate stands at 8%, the reverse repo at 7%, the cash reserve ratio is now at 4.25% as before. Similarly, if the declining trend in inflation sustains, then the RBI may consider rate cuts in the upcoming monetary policy review.The Indian stock markets look good at current levels as well as on declines, around the 5,850 level on the Nifty. Market participants can look at stocks like Indiabulls Real Estate Ltd (LTP: Rs 77.75), Sun TV Network Ltd (LTP: Rs 430), IndusInd Bank Ltd (LTP: Rs 424.15), Yes Bank Ltd (LTP: Rs 477.20), NMDC Ltd (LTP: Rs 168.50), Cera Sanitaryware Ltd (LTP: Rs 405.55), Vaibhav Global Ltd (LTP: Rs 121.90), Mahindra & Mahindra Financial Services Ltd (LTP: Rs 1,123.10) and Zee Entertainment Enterprises Ltd (LTP: Rs 223.35) look good from investment and trading perspectives.Earnings results will start pouring in from the coming fortnight. To begin with, IT results are not expected to be good as it was a weak quarter and IT majors were impacted due to Hurricane Sandy in the US. However, India Inc's results may see improvement in the coming quarter.Lastly, expectations for the budget are building up as the government's focus is on growth. This will support industries and thus be a positive for the markets.Source: Nirmal Bang's Beyond MarketClick here to read the full magazine Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
