Market swings between gains and losses - Microsec

As expected Indian market has remained volatile during the week in line with Global markets. Movements in currencies, commodities and equities were sharper as Brent crude oil prices fell to recent lows and Euro fell against USD on ECB rate cuts to record lows. Over the past two weeks Microsec Fundamental Research recommended sharp upmove in Auto Ancillaries companies, Textile companies. Most auto ancillaries stocks have gained 10-30%. Microsec Fundamental Research recommended Archies Ltd gained ~35% during the week. We expect stock specific gains in the market going forward with the key indices depicting sideways movement. Bajaj Electricals, Thermax, Engineers India, IL&FS Transport offers good fundamental value with long term perspectives (Refer to reports). Oil & Gas exploration related stocks are likely to gain favor soon as India pledge to increase domestic oil and gas production. Aban Offshore, Engineers India, Maharashtra seamless are preferred stocks. The IIP numbers ( 0.5%) missed the estimates Events slated to be released during the week are: On September 15, WPI data for July (survey 4.36%), On September 17 FOMC rate Decision are scheduled.

The week swung between gains and losses on the back of profit booking seen across various sectors however easing of global crude oil prices contained the market.


On Domestic front: India's Foreign Exchange Reserves rose to USD318.64 billion as of August 29, 2014 compared with USD318.58 billion a week earlier.

India's cumulative rainfall during 2014 monsoon was 11 percent below LPA upto September 11 from June 01, 2014.

India's Industrial Production growth for the month of July 2014 came in at 0.5 percent YoY versus a robust 3.4 percent YoY in June. While the Electricity growth remained strong at 11.7 percent YoY, Manufacturing growth came in at a -1.0 percent YoY.

India's Consumer Price Index (CPI) based Inflation slowed down to 7.8 percent YoY in August 2014 against 7.96 percent YoY in July.

On Global front China's Trade Surplus hit a record high in August 2014. Exports in August rose 9.4 percent YoY to USD208.5 billion, whereas, Imports registered YoY decrease of 2.4 percent to reach USD158.6 billion. As a result, Trade Surplus reached an all-time high of USD49.8 billion.

The U.S. Initial Jobless Claims in the week ending September 6, 2014 increased by 11,000 to a seasonally adjusted 315,000 from the previous week's revised total of 304,000.

Source : Equity Bulls

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