Skip to main content

Market Outlook 2010

Indian Stock Markets have started the year 2010 on a positive note. After a stupendous rise of 80% over the past year , what's in store for Indian Markets this year? Moving into 2010 , Sensex at 17,000 levels, most positives based on FY10E earnings are firmly in the price. The risk-reward is not in favor buying heavily into equities, atleast in the index stocks.

Having said that, in the near term, markets would look forward to the upcoming results season for clues into future corporate profit growth. Indian economy's fundamentals should strengthen further as we move into CY10 and momentum in GDP growth should likely gain steam. This should keep the foreign investors interested in the India story.

Currently India trades at trailing P/E of 19 times of current year earnings. Historically markets have gone upto 20/21 times of current year's earnings, which can propel the Sensex to higher levels of about 18500/19000. And only during bubble times, markets have traded above 30 P/E. which is unlikely.

The key risks for our markets are higher interest rates triggered by rise in inflation, global uncertainties on monetary and fiscal tightening. Any sharp interest rate hike in U.S and in India, could trigger the anticipated correction.

Hence the rally is likely to continue, optimism needs to be backed by higher earnings visibility for FY11 and also earnings upgrades. We can expect market gains to be moderate after a strong 2009.

Comments

  1. very useful update about the markets.

    ReplyDelete
  2. This is really a New Year Wish.

    ReplyDelete
  3. hi..........
    is my first time to visit here, wow ur site is good, and greats articles too. can we make a friends with dropper ec, maybe someday i'll find something to make me rich about knowledge. thanks

    is u have a time, can you comment to in my post or articles in my blog?, i hope u can visit me too my friends.

    ReplyDelete
  4. @Dewi Saraswati,
    you too have nice website, very useful articles !

    ReplyDelete
  5. Do you feel Indian Markets will outperform other emerging markets?

    ReplyDelete
  6. Already Indian markets are at 20% premium to other emerging markets and hence it is unlikely there will be outperformance.

    ReplyDelete

Post a Comment

Popular Posts

Your Bill Amounts Are Going To Increase From June 1, 2016

Service tax is a tax levied by the government on service providers on certain service transactions, but is actually borne by the customers. It is categorized under Indirect Tax and came into existence under the Finance Act, 1994. Union Finance Minister, Arun Jaitley, in his budget announcements proposed to impose a cess, called the Krishi Kalyan Cess, @ 0.5% on all taxable services. The present rate of service tax will be hiked to 15 per cent from June 1, 2016, from 14.5 per cent. Take a look at what gets expensive:



Phone Bills: Your phone bills are going to go up. So, pay a good 15 per cent now on service tax on phone bills.

Restaurant Bills :If you are dining in a restaurant that already has service tax applicable, you are going to pay more on your eating out. Though 0.5 per cent on a single bill may not mean much, frequent diners may end-up paying a lot during the year.

Travelling: You will have to pay more for air travel, as there is a service tax on tour operators and travel agents.

Moneycontrol Terminal - Streaming Live Quotes

Moneycontrol has introduced a new feature Moneycontrol Terminal - an enhanced version of real time price updates. Though there were live quotes provided by the website previously, the present form  gives a better update of live quotes of indices and stocks.

This terminal provides live streaming quotes for both NSE and BSE free. It also provides quotes for most of the indices and also the constituents/stocks of the indices in BSE and NSE.  The terminal also provides live news and other market news, which might be useful for traders. The hardware recommended is minimum of 1 GB RAM.

It would be better if stock of any choice could be added ( market watch of a set of stocks ), which would be easier to track one's trading positions. Anyway, this is a better alternative for people who don't have access to any trading software, to view live action of the markets.




You could just try the same here at Moneycontrol Terminal


NSE Level 3 Data

Before we get into details of NSE Level 3 Data, it is important to first understand the basic operations of the stock market.  All publicly traded equities have a bid price and an ask price when they are bought and sold. The bid is the highest price a trader( or an investor) is willing to purchase a stock. The ask is the lowest price in which he is willing to sell a stock.


Depth of the Market(DOM):Looking at a Level 1, Level 2 or Level 3 quotes can give a trader, a basic idea of how a stock is performing at any given time.

Level 1 Market Data provides the basic market data which includes Bid price, Bid size, Ask price and Ask size.

Level 2 Market Data provides more information than Level I data. Mainly, it doesn't just show the highest bid and offer, but also shows bids and offers at other prices. Now level 2 provides market depth data upto 5 best bid and ask prices.

Level 3 Market Data provides market depth data upto 20 best bid and ask prices .  This primarily used by brokers and ma…