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Market behaviour

Markets are going an all time high since yesterday ie 7th of June, the reason is might be a boom, it looks like any stock you buy will move up, no fund manager can fail at these times. Wether cement, metals, software, you name it it goes up. Real estate has not gone up but it is awaiting to go up going by the trend it should also go up. There is a talk in the market that it will not fall, as interest rates will not change and money supply is more. Institutions have a plenty of money they can invest. Individuals are a bit pessimistic as they go to the individual level like loss of jobs and salary. they are bogged down by problems with loved and dear ones because of covid. But, as money is surplus with institutions money supply is there, driving up markets.

Stocks

Cipla and Dabur are good stocks. They are very much in demand as cipla has to produce medicines and Dabur is into FMCG, which are very much in demand as people consume more knick knacks during their home stay. Cipla will be engaged in producing medicines as it is required at this time.

Today Friday the 13 of March 2020

Markets went into freeze in the morning by falling 10%, later on markets recovered with a smart recovery Nifty rising by 365 points reaching 9955 and the sensex ended up by 1325 points reaching 34103. The Carona virus, the main culprit for the market fall in the past week, and Yes Bank problem, Petrol pricing warfare bought down the markets. An extreme incident made the markets fall down and an extreme fall made the markets go up. The recovery might be temporary, as the virus has no cure and the cases are increasing day by day all over the world. The Economy problem is not only related to India, it has spread all over the world. The virus has stopped all economic activity and wealth is not produced. With work being stopped wealth creation stops, so markets have crashed, and the recovery is robust for a temporary phase. The results of companies were average, and the incidents are difficult to face. Stocks are directly related to Economy, and a downward economic activity will lead to fall. So, a long term recovery is anybodys guess and the virus the main culprit is also anyones guess, our whole economic activity hangs in balance.

Today the 9th of March 2020

Markets had a historic fall today,sensex fell by 1941 points at 35634 and Nifty fell by 538 points at 10451.Yes Bank a stock in a scandal was up by 31% crude has gone down because of low demand. The world over demand has come down. The demand is for some stocks like service oriented like diagnostic labs, like Lal Path Labs. and chemical based industries like Pidilite. Otherwise metal stocks and many other stocks have come down. What happens is, the all round drop in capital market, will pill down prices of many stocks, even those stocks which are good will come down. Demand, is to be created, but how demand is created? Automobiles and real estate are the main drivers of the economy, they are down because they were saturated. The best thing for markets to go up is, maybe small industries have to be catered in a particular area. Overproduction is not to be there, goods can be manufactured according to the requirement. Now, with overproduction in automobiles and saturation in real estate, stocks are down.

Today the 4th of March 20120

Markets were down today,nifty closed down at 52 points at 11251, and the sensex by 214 points at 38409, the markets reecovered a bit at the end. The Foreign investors are selling and with the carona virus spreading to India, a lot of nervousness is created in the Capital markets. The results of companies are average and not very good, combined with the outbreak of the virus and the world economy in a tailspin, markets were down. Some also warn, the markets are oversold, and not to go short ie expecting furthur cooling of prices.Some say, the world economy is down and it takes time to recover. With the times we are living now, markets seem to be down and it is better to take care. Stick to those stocks you are familiar with it is a safe bet.

Today the 28th 0f february 2020.

Markets crashed by 1448 points to 38279.29 points being the sensex and the Nifty by 431.50 or 3.71% to 11.201.80. The fall was so bad,out of 2620 companies traded, Advances were 457, declines were 2011,unchanged were 153. The carona virus is causing havoc around the world. The virus, which started in China has spread to many places. It has spread to South Korea, Iran, California, and likely to cover many places. The economic losses are enormous, first Chinese production facilities are closed, and they are not working with offices closed. Lot of raw materials come from China, and it is a trading partner with many countries. Eg.. Bajaj, have got plants in China, leading to stop in production. This will in turn lead to loss of production, and no trade leading to losses. This will lead to loss in Markets share and less profits, leading fall in stock prices, we are seeing now. Some companies might benefit. As, petroleum dependent country like India will benefit as the cost of imports will go down, leading to savings in foreign exchange. Only time will tell to heal the markets from fear and the virus after effects. The virus has to be contained and then only things will improve.
By |February 28th, 2020|Uncategorized|0 Comments

Today 22nd january 2020

Markets are dull now, because of the budget the fluctuations are more due to the usual uncertainities. February 1st the budget is going to be presented. The Finance Minister Nirmala Sitharaman might enhance the income tax limits. ie taxes have to be paid only when you earn more , the exemption limits are to be increased. This will lead to more investments and consumption by people, which will lead to high earnings and thereby inflating stock prices.
By |January 22nd, 2020|Uncategorized|0 Comments

Today the 17th of December 2019

Markets were at a record high today.The Nifty touched 12165 +111points and the sensex touched 41352 +413 points. Taking global cues markets rose today. The GST meet is on the 18th of December has to be looked into. The corporate tax reduced has led to an inflow of foreign funds. Banking shares rose. The foreign funds has been coming in but, penny stocks are rising which is bad, as penny stocks dont have fundamentals in them. Markets have become a play field for mutual funds and foreigners, local participation is very less.
By |December 17th, 2019|Uncategorized|0 Comments

To Day the 10th Of December 2019

Today the Nifty was down by 80.70 points at 11556.80 and the sensex was down by 247.55 points at 40239.88 In my opinion markets have come down due to the see sawing of the markets, there was no particular reason for markets to come down, accept if SBI bad loan divergence is taken into account. Banking index fell . Otherwise generally markets are strong.The Assets under management of the Mutual fund industry rose to INR 27 lakh crore as of November, the SIP (Systematic investment plan under Mutual funds is going on well. This keeps the markets afloat and well for the time being, The alarming situation is Rakesh Jhunjhunwala may withdraw to invest $ 25 million in Yes Bank A bank being controlled by a single investor is not a god thing, Banks as I know have a limit of share holding, but a single investor causing influence in a Bank is not a good situation.
By |December 10th, 2019|Uncategorized|0 Comments

Today the 5th of December 2019,

The Nifty was down by 24 points at 12018 and the sensex was down 70 points at 40779, the RBI policy was today rates remain unchanged. FY 2020 growth forecast cut to 5% from 6.1%. But tax cuts by the Indian Government in the run up for the budget will boost the market sentiment.Indias Nifty 50 index has surged more than 11% this year , mostly due to the surprise corporate tax cut in September 20. Markets remain in a trading range. Source Bloomberg quint and Money control.com
By |December 5th, 2019|Uncategorized|0 Comments