Wednesday, October 20, 2010

Stock Market Predictions

Amidst the latest buzz in Indian stock market, investors are drawing maximum profit and the sensex is stepping towards new heights. This has also invited the flow of foreign funds to India. Inspite of peaking stock exchange of India in recent times, the Indian Rupee has been following an upward slope as compared to U.S dollar. This vary fact has affected exports alongside raising some macro economic challenges for finance in India. As a result of this the apex bank has decided to affect the exchange rate on its own.

However, here are some predictions for various sectors in Indian stock market:

> Coal India's Rs 15,000 crore initial public offer in stock market of India is expected to attract significant foreign investment.

> Capital inflows into India's emerging market is likely to remain strong over the coming months.

> Indian economy will see strong inflows over the next six months as a result of which the rupee could hit 42-levels by the middle of next year.

> Gold will continue its climbing path in coming months.

> Banking / Financial sector will continue to out perform for next 6-7 months.

> Stocks like Asian Paints, Kansal Nerolac, Berger Paints and Camlin etc in Paints sector expected good output in next quarter.

> Major stocks in Pharma sector including Biocon, Dr Reddy, Devis Lab, Lupin and Orchid have hinted strong results in next two months.

> Liquor stocks including United Brewery, United Spirits, Tilaknagar Industries and Jagatjit Industries need cautioned watch.

Impact on Indian Currency

> The foreign fund flows into Indian stocks reached a record $23 billion this year.

> The rupee has climbed 3.5% in the past month.

> RBI governor Duvvuri Subbarao said that it will intervene in the forex market if inflows from global markets turn lumpy (believed to be if rupee strengthens above 43 a dollar).

> The last time the RBI attempted to influence the exchange rate - November 2009, when it sold a net $36 million.

By : Saranjeet Singh

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