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http:// www.tradtips.com GET FREE TRIAL CALL: +91-7415033556 Find a place inside where there's joy, and the joy will burn out the pain. Today’s Market News Fed rate hike near-certain; 9 stocks that have gained over 100% since last hike With less than 48 hours to go before we know US Fed's stand on the much-awaited interest rate hike, equity markets have developed cold feet, and Dalal Street is no exception. Analysts and economists are almost unanimous in their view that there is a nearly 100 per cent probability that the Fed will lift rates for the second time in a decade since December 16, 2015. There are fears that Dalal Street will witness some bit of outflow of foreign institutional investor money should the Fed act on the expected lines. Benchmark equity index Sensex has gained nearly 4 per cent since the last Fed rate hike. Interestingly, there are nine stocks in the BSE500 basket, which have beat market volatility all through this period and surged over 100 per cent. But stocks from the IT and technology sectors disappointed investors during this period. Sectorwise, the BSE IT, TECk and consumer durables indices have slipped 10 per cent, 9 per cent and 7 per cent, respectively, in the past one year till date. However, the Metal index has
outpaced other indices, rising 54.26 per cent since last December. Among others, the BSE Oil & Gas index, PSU and Auto indices have climbed 31.63 per cent, 20.97 per cent and 13.46 per cent, respectively. Nine stocks from the BSE 500 pack have surged over 100 per cent in this period. The list includes Vedanta, which has surged 191 per cent to Rs 244.75 till December 9 from Rs 84 on December 16 last year. Other major gainers include GNFC (up 166.77 per cent), Manappuram Finance BSE -1.13 % (up 166.25 per cent), Swan Energy (up 141.25 per cent), Hindalco Industries BSE -2.94 % (up 131.13 per cent), Indian Bank (up 114.35 per cent), Escorts (up 111.46 per cent), Dalmia Bharat (up 109.05 per cent) and Biocon (up 100.48 per cent). As many as 45 stocks from the same index rallied between 50-99 per cent, while 235 others advanced between 0.50 per cent and 49 per cent. However, 207 stocks from the BSE500 index have given negative return. Among them, Lycos Internet, Alok Industries, Ramco Systems BSE -0.57 %, KSK Energy BSE 2.22 %, Just Dial and Wockhardt have tanked 65.91 per cent, 61.11 per cent, 59.32 per cent, 58.19 per cent, 57.46 per cent and 56.32 per cent, respectively. Analysts say the Indian stock market has already factored in a 25 basis points rate hike by the US Fed. Tushar Pradhan, CIO, HSBC Global Asset Management, said in an interview with ETNow: "I think the market has already discounted a US Fed rate hike. I do not think a Fed rate hike is a very large factor to be worried about from an external perspective, at least for now." Others say Dalal Street may see a short rally if the Fed continues to maintain status quo. "We will see a huge rally if the US Fed does not lift interest rates. I would be looking at a more hawkish stance from the Fed because the expectation is that there will be a lot of expenditure in the US economy," said Santosh Singh, Head of Research, Haitong Securities. The December 14 announcement of the Federal Open Market Committee will be crucial for global markets, not only because it will decide a change in interest rate, but also for the signals it sends out on future rate hikes. According to Bloomberg, the market is currently pricing in a 100 per cent chance that the Fed will lift rates by a half or three-quarters of a point to 0.75-1 per cent.
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