Markets on Friday
It was a dreadful session for the markets, wherein bears took complete control on benchmark indices in last couple of hours. It was fourth consecutive day that markets were under pressure. They have got beaten down on huge volumes in today’s trade led by heavyweights like Reliance Industries, Infosys, ICICI Bank, ONGC and HDFC and Reliance Infrastructure.
Markets completely ignored positive IIP numbers and global cues. The Sensex slipped below 14000 marks while the Nifty just hit 4200 level again.
The Sensex has touched a low of 13,933.87, before closing down by 323.48 points or 2.26% at 14,000.81. The Nifty fell 61.85 points or 1.44%, to settle at 4228.45. It has hit an intraday low of 4200.15.
Main culprit of the day was Infosys Technologies. It dropped 6% or Rs 104.9, to settle at 1,644.10 as brokerages downgraded earnings. Infosys witnessed volumes of 465,038 shares. This was 103% higher compared to its 5-day average of 229,207 shares. It has added 26 points to this Sensex fall.
Global Clues
Stocks were volatile Friday as investors faced uncertainty about whether Lehman Brothers and Washington Mutual are likely to find buyers and whether AIG will shed its sour mortgage-related assets.
Dow Jones was down 11 pts at 11,421.
Gas prices are set to shoot up amid the news to cyclone Ike hitting US.Gas prices are poised to shoot back toward record highs after Hurricane Ike's direct hit to the heart of the nation's oil refineries, analysts said.
The average price of gasoline nationwide has already shot up 12 cents in the past two days to $3.795 a gallon, according to figures released by the AAA Sunday. And the average price of gas is now at or above $4 in
In addition, Hurricane Ike could turn out to be the third-most expensive natural disaster in
Market Tip
Markets are most likely to see a revival on Monday after a huge cut for 2nd day running.
There is nothing much to suggest this time around due to poor market sentiments. Keep faith in Unitech, J P Hydro, IFCI and NTPC.
Among others Bajaj Auto is a good value for money stock. Technicals has maintained buy rating on Bajaj Auto, in its report dated September 2, 2008. Total volumes increased 2.7% YoY to 200,955 units. 3-Wheelers volumes declined by 4.6% to 24,324 units and YTD de-growth of 11.5%. Based on new product launches, Bajaj expects its domestic motorcycle sales to register double digit growth in 2HFY09. Our current FY09 volume growth estimate is 3.8% for FY09, implying residual growth of 2.1%. For motor cycles, our FY09 estimate is 4% growth and implied residual growth is 0.3%. We will be upgrading our estimates. The stock trades at P/E of 10x FY09E and 8.6x FY10E. we have maintained buy rating on this.
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