Stock Shastra

The Indian Stock markets have shown a good performance in 2012, on the back of positive developments around the world and the Indian economy. The Sensex saw a rally that lasted from mid-December right upto mid-February.

This rally came to a halt when the Sensex witnessed a steep correction from 22nd February and saw a further correction post the state elections in March. The Union budget scheduled at the end of this week, is another major event to watch out for.

With the overhang of these concerns, let’s look at the 9 month performance of the Sensex companies. And what is the future outlook? Also, let’s find out what picture does the Sensex at MRP show.

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?

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?