Kite season…indices on a high
Wish you a happy Makar Sankranti.
Makar Sankranti is a day when the glorious Sun-God begins its ascendancy and entry into the Northern Hemisphere. Right enough, the bulls seem to flying with the indices to new highs. The earnings season has got off to a bright start with Infosys registering relatively moderate results in Q3 FY07, which were just in line with expectations. How long the bulls can hold on to the winds of change remain to be seen, especially in the coming weeks. India's industrial production expanded at the fastest pace in 11 years in November. Production at factories, utilities and mines rose 14.4% from a year earlier, the fastest since September 1995 and new banking law are just some of the positive news boosting the sentiments on D-street. With major chunk of biggies yet to announce their quarterly report card one should cautiously ride the bullish run in the market. Don’t be carried away and get sucked into the rally. Also, the flow of the foreign money and the pace of it will be watched closely ahead of the budget.
The week ahead will see the likes of Reliance Industries, TCS, Wipro, HCL Tech, Bajaj Auto, Infotech Enterprises, Bharat Bijlee, REL, Siemens India, Satyam Computers and Jet Airways declaring their quarterly numbers, so activity will remain centered around the news flow. There are some uncertainties like rising inflation and hardening of rates in the near term, which may put some brakes on the raging bulls. Among the smaller stocks, which could see action, are KS Oil, Zenith Computer and Rama Pulp.