Market likely to remain range bound

According to Mafatlal Securities' Morning Note, Indian Market is likely to remain range bound today.

Mafatlal Securities' Morning Note:

The Market is expected to open positive as the N-Deal has been accepted by the US government with 2/3 majority and further the bilateral trade between US and India is expected to be positive in future. However the Asian markets are trading mixed. Though the major stock markets in Asia opened positive on the back of positive cues from the US government about the $700 billion bail out plant but the bill would authorize $250 billion immediately, with another $100 billion upon presidential certification. A further $350 billion would also be available subject to congressional approval. US indices ended flat on Friday with the Dow Jones ended in a positive the NASDAQ down by 3 points. Indian Market is likely to remain range bound today.

Read more ...

Inflation, Re, Pay Commission moves worrying: SV Prasad

SV Prasad of Schroders is not confident of the fact that the markets really formed a bottom in July, as inflation is still high. India is still expensive relative to China and Russia. The P/E for large caps looks high. He expects action in the IT space, given the depreciation movements in rupee. His current concerns are inflation, rupee depreciation and impact of the Pay Commission decisions.

Excerpts from CNBC-TV18’s exclusive interview with SV Prasad:

Q: We have got stuck in a bit of a range but do you think we put a bottom in place in July or you cannot say that with confidence?

A: I cannot say that with confidence while the oil prices globally have come off, inflation numbers are still quite high. From a foreign investor perspective, the prices still look high when one does a comparison with some of the markets especially China. So, it’s still not clear but things are definitely lot better than what they were a month or so back.

Read more ...

See mkts heading lower to 12k levels: JP Sinha

JP Sinha of Mangal Keshav believes that the main culprit for the market downside is the oil prices. According to him, the market at 13000 levels is attractive for long term investor but for the short term investors, it is quite risky.

He feels that overall year 2008 has not been good and could deteriorate further. He said that both the earning and valuations are declining, therefore the markets can move back to 12000 levels in the short-term.

Read More ...

Nifty may reach 4700-4730 levels: Modern Shares

Anil Manghnani of Modern Shares & Stock Brokers sees 4600 as the technical target for Nifty. He said an upside of 4700-4730 may also be seen.

According to him, the FII numbers are the key features of the market. Some of the easing out was seen in the FII numbers on Wednesday. He believes that the worst is still not over for the markets.

Read more ...

How does Warren Buffett gear up for his shareholders meet?

Every year, Warren Buffett invites each and everyone of his shareholders here to his hometown for the granddaddy of all annual meetings. Over 30,000 of them will actually show up to the centre just to catch a glimpse of the 'Oracle of Omaha,' as Warren Buffet is called. Over the next three days, Warren Buffett will tirelessly answer questions from his shareholders. He will walk miles through this Convention Centre through all the back halls and he will catch up with old friends over a can of Coke or a game of bridge.

And for the first time, CNBC is with him every step of the way from setup to breakdown and everything in between.

It is the calm before the storm. Hundreds for Berkshire’s owner in town, building the exhibits that cover this 200,000 square foot floor. Tonight they get to meet their big boss, Warren Buffett.

It is Thursday evening and the Oracle of Omaha’s whirlwind weekend is just beginning. First he meets with the troops, employees from dozens of Berkshire’s companies, taking photos with each and everyone.

We are all heading to the Omaha Bridge studio to play with long time friend Carol Loomis, Editor at Large of Fortune Magazine.

Read More ...

Mkts to trade rangebound with upside of 6-7%: Edelweiss Cap

Abhijit Chakraborty of Edelweiss Capital said more people are coming to the markets to buy ideas. Risk appetite has been marginally positive. It is helping investor sentiment in India. But he thinks it's pretty unlikley for markets to retest recent bottoms. He expects to see rangebound markets which may trade in the range of 6-7% on the upside.

Domestic investors have been cautious, he said. Currently they don't expect more than 15-20% upside. But He doesn't expect a very sharp fall in the markets.

Read More

Re breaches 42.5/$; will touch 43 in short-term

Rupee has breached 42.50. Experts believe, in the absence of any intervention in the markets, it's very difficult for rupee to appreciate. In the next few sessions, rupee is likely to continue to weaken.

Subramaniam Sharma of Greenback Forex said he saw it coming. "It was on the cards this morning because the rupee closed on a weak note yesterday. Crude prices were also looking up around USD 126/bbl and it was very clearly an indication that the rupee may slide further," he said.

He expects RBI to take some action against this steady downfall.

While Agum Gupta, Head - Forex, Standard Chartered Bank thinks 43 is not very far away for the rupee. "We are already at Rs 42.50 and the way we have been moving 40 to 50 paise a day, has become pretty easy. So I don’t see why Rs 43 can be considered to be too far away," he said.

Read more