Stock Shastra

It’s been a year to forget for the Indian stock markets. Since the 20,000 level seen in Dec-2010, Sensex has dropped more than 4000 points to reach close to 16,000 over the last 12 months. A plethora of factors have been responsible for this. Be it global fears of the European debt crisis deteriorating further, the US credit rating downgrade, the rupee taking a beating or the domestic problems of high inflation and interest rates along with a government handicapped with corruption allegations and policy paralysis, nothing seems to have gone right for the stock markets.

So with the backdrop of these concerns, how did the Sensex companies perform on the earnings side for the September quarter? Have the earnings been hit badly during the quarter? And most importantly what action should you take considering the Sensex@MRP?

Mayhem, panic, bloodbath..The Sensex went into a freefall yesterday losing 700 points – the highest ever in 2 years after a see-saw ride seen over the last few months. The trigger was the warning by the US Federal Reserve of a “significant” downside risk to the US Economy. With many European countries also struggling to stay afloat, the question that markets the world over seem to be pondering is not IF another crisis will happen but WHEN it will happen. This has made the stock markets – Sensex included – jittery. To add to this, the domestic situation also seems to be contributing to the weak sentiment. Rising inflation, increasing interest rates, depreciating rupee (~Rs. 50/$) all have signaled an ominous start to FY 12.
With this background, how have the Sensex companies performed on the earnings side for the June quarter? And most importantly what action should you take considering the Sensex@MRP?

A few days back we came out with our latest report on Sensex@MRP. The market was in a sell-off mode at that time. However, with some positive global cues, we saw a rally with the Sensex rising from 17500 to close to 19000 in a few days. However, the rise was short lived and last 2 days have seen a fall. While the market continues on its roller-coaster ride, many of our readers have been requesting for a report on Nifty@MRP – the broader index and probably the more favoured amongst investors as well.

So, where does the Nifty@MRP stand considering the March 2011 quarter results? And what insights does it give with respect to what you should do as investors?

The Financial Year 2012 saw negative news continue to pour in for the market. Since the 19,000 level seen in March, Sensex has dropped more than 10% over the last two and a half months. The factors leading to this fall include inflation, rising interest rates and weak global cues. Inflation has been one of the key concerns for the Indian companies affecting earnings in the previous quarters. To tame the inflation, the RBI has continued tightening the monetary policy by rising interest rates.

So, how have the Sensex companies performed on the earnings side for the March quarter? And most importantly what action should you take considering the Sensex@MRP?

The New Year has not started on a good note for the Bulls. Since the 20,000 level seen in December, Sensex has dropped more than 2000 points over the last 2 months. The factors leading to this fall include the deluge of scams that have cast a shadow on the governance issues in the country and fears of high inflation affecting the profitability of India Inc.

So, how have the Sensex companies performed on the earnings side for the December quarter? And most importantly what action should you take considering the Sensex@MRP?