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Showing posts from October 11, 2009

A member asked for C. Kutumba Rao's Article

IGNORING GOOD news such as positive global cues, liberal bonus issue from Reliance Industries and better-than-expected results from Infosys, markets tumbled from highs on heavy selling pressure during the week ended. On the Bombay Stock Exchange (BSE), the Sensex plunged 492 points to close at 16,643 and the Nifty on the National Stock Exchange (NSE) fell by 138 points to 4,945. Market breadth was negative during the most part of the week reflecting caution among market participants ahead of the "festival week." Telecom and IT scrips proved to be the biggest drag on the indices. FMCG and metal stocks were in demand on sustained buying interest. With several companies sucking liquidity by issuing QIP, IPO, GDR and other instruments, money flow to the secondary market is getting limited. Simultaneously capital inflows have led to strengthening of rupee hitting hard the export-oriented companies. A result of one company does not change the overall outlook; keep track of broader