Saturday, April 23, 2011
As anticipated, the Indian market did manage to recover from last week's severe jolt. A worldwide rally in equities on the back of some sterling results in the US coupled with IMD's forecast of a normal monsoon were the key drivers. TCS and Reliance Industries came out with their results on the last trading day of the truncated week. Both the stocks will be in action early next week along with Hindustan Zinc, Jindal Steel, Nestle India and Axis Bank. Earnings will continue to be in focus for quite some time to come as the annual earnings are spread over three months. Volatility will remain high next week due to the F&O expiry on April 28.
The country will have normal monsoon this year. Releasing the initial Long Range Forecast for the coming June to September period, Union Minister for Science & Technology and Earth Sciences, Pawan Kumar Bansal said, "The rainfall for the country as a whole is most likely to be normal i.e. 96-104% of Long Period Average (LPA).
There is very low probability for season rainfall to be deficient (below 90% of LPA) or excess (above 110% of LPA). Quantitatively, monsoon season rainfall is likely to be 98% of the LPA with a model error of + 5%. The LPA of the season rainfall over the country as a whole for the period 1951-2000 is 89 cm, he said.
A trial court in New Delhi rejected the bail pleas of five India Inc honchos named by the CBI in the 2G scam case. All the five accused were taken into judicial custody. Shares of Unitech, DB Realty and ADAG pack fell after the news.
The five officials in question are Sanjay Chandra of Unitech, Vinod Goenka of DB Realty, Gautam Doshi of ADAG, Hari Nair of ADAG and Surendra Pipara of ADAG. They joined disgraced former Telecom Minister A. Raja, his former private secretary R.K. Chandolia, former Telecom Secretary Siddhartha Behura, DB Realty MD Shahid Balwa, his brother Asif Balwa and DB Realty D Rajiv Agarwal in the Tihar Central Jail.