Continued bad news from China, and weak earnings of large caps caused correction in Nifty, as Nifty cracks below 8500, and closes at 8462. On the international front, The People’s Bank of China (PBOC) allowed the yuan to depreciate almost 2 percent against the US dollar to levels last seen 3 years ago, sending a shock through global Forex markets. Indian investors are worried about impact of devaluation of Chinese currency. India’s largest bank State Bank of India (SBI) reported a mixed set of results. Net Profits beat market estimates but NPAs were a bit higher than last year. SBI Chairperson Arundhati Bhattacharya is confident that there will be a decline in NPAs. She pointed towards certain cyclical factors that affect SBI in the first quarter (April-June), and that NPAs have always shown up in the first quarter and going forward SBI is seeing reduction of stressed loans. SBI stock fell by 5% and closed 269. As expected, it was a high volume day for SBI. At P/E 11, the stock is attractively valued for investors who believe economic recovery is possible in 1-2 years from today.
Category Archives: Stock Market News
US Markets Review -17July2015
US markets opened on a positive note as the week began amid news that Greece and its international creditors have reached an agreement on a new bailout for the debt-laden country. The US markets maintained strength despite the retail sales falling by 0.3% in June versus expectations of a 0.3% increase. On the US economy front, the Producer price index rose by 0.4% in June following a 0.5% increase in May and expectations of a 0.3% increase. The Industrial production increased by 0.3% in June after edging falling 0.2% in May. The markets ended the week on a positive note owing to the news that the Greek parliament voted to approve the tough austerity measures. Upbeat earnings news from some influential companies also aided the investor sentiment. The initial jobless claims fell to 281,000 versus expectations of a level of 285,000. Nasdaq hit a new high on the back of stellar upmove by Google during this week.
Markets Review – 27March2015
US Markets: The US markets opened lackluster on Monday morning and remained in profit booking mode throughout the weak. Investor sentiment was jittery on the back of better than expected domestic data thereby reviving possibility of an early rate hike by US Federal Reserve and geo-political headwinds. On the macroeconomic data front, a report from the US Commerce Department showed that new home sales grew 7.8% to an annual rate of 539,000 in February (analyst expected it at 462,000). US consumer price index increased up 0.2% in February 2015 after falling by 0.7% in January 2015. A report from the US Commerce Department mid-week also depicted an unexpected drop in durable goods order in Feb 2015 (down 1.4%). US initial jobless claims fell more than expected for the week ended 21st March 2015. Initial jobless claims fell to 282,000 from the earlier week levels of 291,000. Continue reading Markets Review – 27March2015