Sat: 22nd Oct 2011

Markets big biggies have declared their result for quarter July-Sep 2011. Mukesh Ambani lead Reliance Ind reported on Sat a 15.80% yoy growth in net profit for the second quarter of financial year 2011.

Hdfc Ltd reported a 20% increase in Net profit for the quarter ended Sep 2011, aided by the strong growth rate. That means that the demand for home loans has been steady and has not been affected by rising interest rates of high property prices.

Tcs posted slightly lower than expected rise in quarterly net profit to 14.7%.
Better-than-expected results by IT bellwether Infosys (which posted a 11 per cent increase in net profit to touch Rs 1,906 crore in Q2 FY12), overshadowed disappointing IIP numbers and took the Indian benchmark indices surge last week.

China GDP growth eased slightly in the third quartet to its slowest pace since the second quarter of 2009. Gross domestic product rose 9.1 percent in the third quarter from a year ago, moderating from the second quarter's 9.5 percent. It was slightly below market forecasts for a 9.2 percent expansion. China's inflation, albeit easing, eased to 6.1 percent in September, close to near three-year highs of 6.5 percent in July and well over Beijing's 2011 target of 4 percent.

France is among euro-region sovereigns likely to be downgraded in a stressed economic scenario, according to Standard & Poor's. The sovereign ratings of Spain, Italy, Ireland and Portugal would also be reduced by another one or two levels in either of New York-based S&P's two stress scenarios, the ratings firm said in a report dated today. These assume low economic growth and a double-dip recession in the first set of circumstances, and add an interest-rate shock to the recession in the second.

Rupee falls to 50 against US dollar for the first time since May 2009.

Indices shrink nearly 1.75% in a week. Tcs tanked nearly 8%, Hcl tech 6%, Rel Infra 6.2%, Lnt, Hindalco & Sesagoa 6%. Cairn fell 14% and Jain irrigation 12%. On the other side Hdfc bk gained 3%, Maruti despite the strike gained 6%, Sbi 5%, Axis BK 3%, Coal India 2%. On back of the F1 circuit for the first time in India, JP Infra is being in the race. It gained almost 26% in a single week. Moser baer closed up 24%. Arshiya Intl gained 18% in the small cap and the mid cap group. Raymond was up 15%, Patni 14%, Kpit Cummins 11% & Hero Moto gained 3%.

Technically our markets are trading in a broad range. Nifty is trading in a broad range of 5200 and 4750 levels. If we look at a broader range than the Nifty is trading in a island pattern with the top of 5200 and low of 4750 levels. Either ways breakout will only decide the further path for the Nifty. In the weekly chart Nifty seems to be on the verge of breakout on the upside. MACD may give positive divergence within some days.

Markets have been very stock specific now a days. Arbitragers and Speculators gets on the stock which are newly listed or whose quarterly results a re out. There is not much to talk about the Indian markets as off now, as we are mostly following the international markets.