Bulls Rocks....

After opening with a marginal positive gap, the markets surged on the back of strong cues from the global markets. The Finance Minister's comments - on GDP growth forecast and continuation of the stimulus till Budget - fimed up markets further. The Sensex soared over 500 points to regain the 17,000 level after six trading days

The Finance Minister reiterated that the economy's growth will be at the earlier projected rate of 7.75%.

Global cues also gave a fillip to the Indian bourses. US markets rallied on Tuesday as a better-than-expected home sales data was reported. Asian markets also ended in the green today.

All sectoral indices were in the green as the metal index shone. The index jumped 4% to 17,075. Oil & gas, power, IT and capital goods gained over 3% each.

Reliance was the star performer in trades today and surged 4.6% to Rs 1,066. Other heavyweight - Infosys, ICICI Bank and Larsen & Toubro rallied 3-4% each.

Metal stocks shone. Hindalco soared 8% to Rs 153. Sterlite surged 5% to Rs 847. Tata Steel added 4.5% to Rs 603.

PSU stock NTPC advanced 7% to Rs 230. Relaty stocks - Jaiprakash Associates, Reliance Infrastructure and DLF jumped.

Other gainers included BHEL, Mahindra & Mahindra, HDFC, Tata Motors, TCS and ITC. Reliance Communications, SBI, Wipro, Grasim, Maruti Suzuki and ONGC moved up 1-2% each.

The BSE market breadth was positive. Out of 2,922 stocks traded 1,902 advanced while 927 declined.

FM Announces today...

The government today said the fiscal stimulus given to the industry to combat the adverse impact of the global financial meltdown will not be withdrawn before the Budget to be presented by Finance Minister Pranab Mukherjee in February.

"You have to wait till the budget," the finance minister said, replying to a question, when the government proposes to withdraw the stimulus packages

After the collapse of Lehman Brothers in September 2008, which triggered the global financial crisis, the government had provided three stimulus packages to spur growth in a slowing down economy. These were in tandem with the measures taken by the Reserve Bank of India to make available more liquidity to the cash-starved industry.

The fiscal packages were mainly aimed at sacrificing tax revenue and raising public expenditure with a view to generating more demand for industrial goods.

With the economy recording a growth rate of 7.9 per cent in the second quarter (July-October), it is expected that the government may start withdrawing the stimulus, especially to contain rising fiscal deficit targeted to go up to 6.8 per cent of the Gross Domestic Product by the end of the 2009-10 financial year.

Addressing the captains of the industry here, Mukherjee said, "green shoots (of recovery) are now firmly taking roots. The recent data confirms it".

The factory output has recorded a growth of 10.3 per cent in October, Mukherjee said, referring to the recently Index of Industrial Production (IIP) data.

Besides, the export growth rate turned positive in November, recording a 18 per cent growth after a gap of 13 months.

Also, the mid-year review of economy, tabled in Parliament last week, had said that economic growth rate could exceed 7.75 per cent during the year. The recent growth projection is much higher that 6 to 6.5 per cent estimated earlier by the Reserve Bank of India and the Prime Minister's Economic Advisory Council (PMEAC).

Although the RBI had already kicked off the exit by raising Statutory Liquidity Ratio (SLR), the portion of amount banks put in government securities, by one percentage point to 25 per cent, the finance ministry has been maintaining that the stimulus should continue till there are signs of a sustained recovery

Forex Rate

Following is Forex Rate as on 28-11-2009

Currency Rates  in INR        

Name                                              Rate

Australian Dollar (AUD)                   42.35

British Pound (GBP)                       77.02

Canadian Dollar (CAD)                    43.94

Chinese Yuan (CNY)                       6.83

Danish Krone (DKK)                        9.40

Euro (EUR)                                    69.95

Hong Kong Dollar (HKD)                  6.02

Iraqi Dinar (IQD)                              0.04

Japanese Yen (JPY)                        0.54

Kuwaiti Dinar (KWD)                       163.49

Omani Rial (OMR)                           121.20

Pakistani Rupee (PKR)                     0.56

Qatar Rial (QAR)                             12.82

Saudi Arabian Riyal (SAR)                12.45

Singapore Dollar (SGD)                     33.62

South African Rand (ZAR)                  6.28

Swedish Krona (SEK)                        6.70

Swiss Franc (CHF)                           46.40

UAE Dirham (AED)                           12.71

US Dollar (USD)                                46.68

Great Recovery in Indian Market

Well it was a wonderful day for treaders. Buy on dips and Sell on high is a good strategy in this kind of market. Due to Dubai debt effect, indian market crashed and hit the days low at 16210 down 644 but after that, it ended at 16632 down 222 and nifty at 4941 down 64

As I said in my earlier post, RBI announced that none of indian bank has exposure to Dubai, indian market recovered very sharply under Bank's leadership

Dubai's debt crisis has put Indian equities as well as global markets on fire since yesterday. The crack across the globe emerged when emirate said two of its flagship firms planned to delay repayment of billions of dollars in debt. The markets feared that this debt default could affect other countries as they are trying to recover from global meltdown.

But the benchmark indices as well as European shares discounted most of the news, due to which Indian equities recovered more than 2/3rd of losses in the last couple of hours, led by buying from insurance companies. The Nifty closed the day above 4,900 level while the Sensex above the 16,600 level.

Market Crashed with effect of Dubai debt

Its look like a black friday in whole world as per economy point of view. Yesterday Europe markets were closed 3% down.

In Dubai, State-backed networks named as Dubai Inc. is in debt of $80 billion and can not pay for atleast 6 month. Due to its impact, the compnies which have exposure to Dubai are in danger now. As soon as this news spread, it looks like 2nd crisis has been started in world. Hongkong market is down by 700 points. Indian market opens 400 point down which never been in 2009. Now analysist seems this as a corretion and predict to correct up to 14500 level. Right now Sensex is treading at 16318 down 537 points (3.2%) and Nifty is at 4839 down 166 points (3.33%)

Scary thing is that nifty is not taking any support at all. All the major supports are broken very easily and for bulls, it has so many strong resistance.

It may be ended 600 down today. And may be 300-400 down on Monday. If Indian Government wants to save investor's money, they have to take some encouraging steps