Results 1 to 10 of 10

Thread: Niveza Review: RBI Policy and Government Initiatives to Strengthen

  1. #1

    Niveza Review: RBI Policy and Government Initiatives to Strengthen

    Indian stock markets saw best monthly advance in the month as foreign institutional investors were seen on buying spree as government pledged to cut the fiscal deficit and on speculation that lower interest rates would help kick start growth. Recently, the Union Cabinet has approved the national capital goods policy to spur the capital goods sector. The government believes that the implementation of the capital goods policy is critical and would give much needed help to give a boost to the sector and the 'Make in India' initiative. Government's latest move of slashing the retail savings rate has strengthened the possibility of a rate cut by the RBI next month in the policy meeting scheduled on 5th April.
    Global markets strengthened during the week on the back of sustained recovery in crude prices along with willingness of major central bankers to support global growth. Markets are pricing that U.S. Federal Reserve would boost borrowing costs in the June meeting after policy makers rightly refrained from raising rates this month after a rocky start to the year clouded the economic outlook. The euro area economy showed signs of strengthening in March as factory and services activity in the 19-nation currency bloc unexpectedly rose this month. The European Central Bank announced new stimulus measures this month, including corporate-bond purchases and long-term loans to banks as part of its bid to lift inflation in the currency zone.

    The trend in global markets, investment by foreign portfolio investors (FPIs), the movement of rupee against the dollar, and crude oil price movement will dictate trend of the market in the absence of any domestic macro economic data. It was a holiday shortened week and we saw thin trading in the Indian market. However, some actions were seen in the domestic market as international market was firm and fresh buying was generated on some positive triggers. CRB closed up for the fourth week in a row on upside in crude, base metals and in some agri commodities. Upside in the greenback capped the upside of CRB to some extent.

    Gold can trade in the range of 28200-29800 levels while silver can move in the range of 36000-39500 levels in the near term. Crude oil may trade on a strong path amid expectation of production freeze by Russia and Venezuela but profit booking at higher levels cannot be denied. Overall Crude oil can move in the range of 2600-2900 levels in MCX. Recently, signs of a revival in China's housing market and decline in LME warehouse inventories supported the base metals prices.

    Stocks to watch: ICICI is on the upside while Crompton Greaves is on the downside.
    Last edited by niveza; 03-29-2016 at 11:27 AM. Reason: font size different

  2. #2

    Live Share Market Updates

    #NIveza #Review:
    Market opened with a flat note on the future and option expiry but fresh buying can dig pillars soon and the policy review could be one of the biggest stimuli to push the market above 8000. The Union Budget has given growth signs. Now time for the policy review to carry the momentum.

    Ashoka Buildcon: The stock is looking decent at current levels as it already has registered spike in last month. But considering the announcements for the infra sector, revenue visibility could be better for the stock. It can be a better buy for long run.

    Jain Irrigation: In the agri sector, Jain Irrigation is looking one of the safe bet considering the new business acquisition of the company. Valuation is looking decent at current levels.

    Natco Pharma: After the inspection and observations, Natco Pharma is looking out of the danger zone. The company already has submitted the compliance letter and the reports to the concerned person. With the positive note, the stock spiked by more than 5% at the opening.

  3. #3
    #Niveza #Review on RBI Rate Cut Policy:

    After a rate cut, market crashed significantly. After stabilizing in the middle hours, last hour again held by bears increasing losses to 516 points, ended on 24883.59. The Nifty lost 155.6 points to 7603. Oil joined the party with further slip, adding to the losses. Banking stocks are corrected 4-5 percent on an average. Banks have given good opportunity to buy again on this dip. Financial holding companies were seen triggered here with L&T financial holdings gaining around 7 percent in a day.
    RBI Governor Mr. Raghuram Rajan cut the repo rate by 25 basis points to 6.5 percent at the first bi-monthly policy of the year. As expected the accomodative stance of the policy has been continued by the RBI. The reverse repo is raised by 25 basis points from 5.75 percent to 6 percent. The difference between the repo and the reverse repo minimized to 0.5 percent. The minimum daily maintenance of cash reserve ratio is reduced from 95 percent to 90 percent. This will minimize liquidity deficit in the system. This correction has given good buying opportunity again for the investors. Auto Industry, Real Estate, Infra can resume fresh.

  4. #4
    #Niveza #Share #Market #Tips::
    Market View for the Week :-

    The second session of the Budget has begun at the start of the week with crash of the dalal street. The Sensex crashed by 159 points on very first day while the Nifty fall by 44 points. As expected opposition parties targeted the Government on Uttarakhand issue, but as there was stay on debate till 27th April, government refused to participate in the debate. The US Federal, the Reserve Bank of New Zealand and the Bank of Japan were scheduled to meet keeping markets hanging to see if the Central Banks will announce monetary policy.

    The very next day bulls roared with the Sensex gaining 328 points while the Nifty surged by 107 points. Ramdev Baba’s Patanjali Ayurved the FMCG Venture came strong with the investment of INR 1,150 crore for current fiscal to set up six processing units and one R&D center as it chases a turnover of INR 10,000 crore in current fiscal. The National Pharmaceutical Pricing Authority (NPPA) has issued notices to 263 firms that were found overcharging during 2015-16. NPPA has informed that during 2015-16, demand notices were issued to 263 companies amounting to Rs 928.32 crore, Minister of Chemicals & Fertilizers Ananth Kumar said in a reply in Lok Sabha. The recovery effected is Rs 12.68 crore.

    On the expiry day, nothing happened beyond expectations. Market crashed by 461 points on Global worries and static Budget working. Even as the labor market strengthened, the Fed Reserves kept the rates unchanged citing slower growth in the US economy. Bank of Japan even remained steady and did nothing out of box. BOJ also kept the rate unchanged and the negative rate policy still in charge. The point of concern could be the GDP growth forecast as it has been trimmed for FY17 and FY18. Bank of America Merril Lynch has retained its underweight rating on India and adding India to be the safest bet among the emerging economies. Market experts expects that second half of the year could be better in term of growth and earnings. The biggest trigger could be better monsoon which ultimately can boost Indian economy. But this is nothing but wait and watch condition.

    Stocks to watch: Navneet Education is on the upside while Hindalco is on the downside.

  5. #5
    A good monsoon’s critical for growth and inflation

    Earlier last month, the weather forecast released by Skymet was a relief for the farmers as well as for the Indian economy. As per Skymet forecast, the rain will be more than the average this year. Last two years were poor as far as rain is concerned. Even after the poor monsoon, the food inflation has not spiked. Food inflation was under control excluding couple of weeks. RBI Governor already has cut repo rate by 25 bps and because of good Budget, India still having some space for another rate cut. After the China crash, even the global central banks marched on same track showing monetary easing ans restructuring towards stability. Another important factor was steady policy by US Federal and even this year is looking difficult as far as rate hike is concerned. Better monsoon surely will spike the market and will help to maintain the inflation rate. Not only agriculture stocks but entire equity market will see north direction with good monsoon.

  6. #6
    #Share #Market #News for #JSPL ::
    JSPL and all other stocks had terrible last year. Sluggish demand, debt, reducing prices in market lead to losses for the company. However since last quarter, things have started seeing some positive movement. Metal prices are recovering, demand will gradually pick up both domestic and then slowly in international markets as well. Recently JSPL has also done a sale of their business to JSW energy. The cash coming from this transaction will help the company to pare some debt. These are positives for the company and turnaround of the business is on the cards. However, recently promoter of the company Mr. Navin Jindal is involved in a court case for cheating and corruption charges and this dragged the stock down recently. However, it should not directly impact financials of the company but sentimental impact is there very much. So investors with good risk appetite can bet on this stock for next few quarters.

  7. #7

    Stock such as ITC is available at PE of 26. Though if we take a look at other FMCG players this valuation looks attractive but there are other points to consider.
    Fist of all duty on Cigarettes will keep increasing year by year. Awareness creativeness in people can really hurt the growth of ITC in cigarettes volumes. Plus due to increasing prices year over year margins can come under pressure. Though ITC is a cash cow and valuation somewhat looks good. Still it is no more a wealth creation kind of stock. There are better stocks available in the market and which can give you steady and reliable returns.

  8. #8
    Gold was on the silent side on the occasion of Akshaya Tritiya as well. The main reason behind this could be the mismatch between the demand and the prices of gold. As the price of the gold spiked in the market during last year, the volume has been on the lower side. The earlier strike must have poured some negative sentiments in the market as well. Still retail stores are expecting some spike as the season of weddings is on. But still people are never keen to buy gold at such levels and waiting for gold to get cool down. Possibility is looking fade for the gold to correct more. Even with the long term perspective, as an investment tool, gold is loosing the market as the gains are on lower as compared to other investment tools available in the market.
    For more such news visit @

  9. #9
    #Stockmarkettips:: IDBI Stock in News ::
    IDBI stakes sale will drag the Government investment to below 51% and the investors which are liked up in the pipeline are not the strategic investors. The privatization of IDBI could give an extra benefit to the management as well. The sale is fast-tracked with the dead line of June 30. The pipeline investors like IFC, TPG are the major promoters of the privatization of the banks in all countries. Across the World, these investors usually holds nearly 4-5 percent of the investments. This could be a great expansion in IDBI's equity as well. No doubt the investors are taking it in a positive way and it surely is a qualitative change. At current levels, IDBI is looking like a multibagger pick. 60-63 levels could be decent to enter with 2-3 years vision. As far as the valuation is concerned, IDBI is undervalued and with high expansion and growth plans.

  10. #10
    #Multibagger #Stock #Ideas :: Market in a Bull run 3 June::
    Market is really bullish at the moment. But the coming events like RBI monetary policy, US Federal meet can add volatility in the market. Rate hike in US can drag the market but everything is looking like digested already. Looking at the charts, some correction could be possible this month which can give some fresh buying opportunity for long term as well as short term investors.Oil is settled a bit at current moment. Quarter results have played major role in pulling the market in north direction but the point to debate is to carry it further. Triggers like better monsoon and GST bill can play the role further if placed properly.

    For more Visit@ Multibagger Stock Ideas

    For an established investor or a new comer its very crucial for them to invest in a fluctuating market where no one gurrantes for profit. The news channels happen to fixate on short term fluctuations which seemed to be depressing at times, but if you are in the stock market for the long haul so not paying attention can sometimes be the wisest thing to do. Investors are offered with lots of Free stock tips and most of the newcomers and investors fall in trap. But needless to say those tips are for short term trading as well, which individual investors should avoid .
    Niveza is an Advisory firm which provides Long term Stocks tips by tracing almost every movement of the market and providing our clients with best analyst Stocks Pics and Full Support during market hours.

    Subscribe with our Short term Stock pics, Multibagger Stock Ideas for quarterly or annual basis as per your choice. Be with us and make money forever.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
About us provides news coverage, analysis and researches for world stock markets, commodities and currencies. We publish articles provided by experts of leading brokerage and investment companies. At our website investors can find daily, weekly and monthly reports, news, recommendations on the IPOs and fundamental analysis for stocks which are currently traded at the stock exchange.