Beginner Guide For Indian Stock Market

Indian markets dropped in volatile trade and closed flat on concerns foreign investors may slow down their purchases of emerging countries’ stocks (like India, China, Brazil, etc.) if the US Federal Reserve increases interest rates earlier than expected. The US Fed is likely to raise short-term interest rates next year from their current close to to zero levels, where they have been since December 2008. - ONGC, Coal India and NHPC declined in volatile trade after the Cabinet Committee on Economic Affairs on Wednesday, approved stake-sale (govt will offer shares in the market and as a result of profit, which will get divided into too many shareholders thus reduced share price today) in these three state-run firms. - Sun Pharmaceutical Industries and Ranbaxy Laboratories dropped on reports that Sun Pharma’s manufacturing best convenience in Halol, Gujarat is undergoing a surprise inspection by the US Food and Drug Administration (USFDA), which gives license and if it finds any issue then it will stop its production and will ban the supplies from here to the US market. Shares of other pharma companies also declined. PSU bank stocks gained. Capital goods (those goods which are used as assets in other industries like Transformers, Trailers, Cranes, JCB’s, etc to generate revenue) stocks edged maximum. PSU OMCs get as crude oil prices declined. - On the domestic macro-economic front, inflation numbers for the month of August and Manufacturing data for July are expected to come next week. Domestic rubber prices have seen sharp falls recently. Decline in rubber prices could increase good profit margins of tyre firms. Rubber is an important raw material in tyre manufacturing. Govt to come up with a new fertilizes policy soon. - US unemployment data went up suggesting weak recovery process. USD likely to go weak against INR. Tomorrow is the day of global data and lot currencies will get shaken up. ECB (European Central Bank) chairman Draghi, BoJ (Bank of Japan) chairman Kuroda will speak on their economies and US will show retail sales number, Europe’s industrial production, employment change, etc. - Crude oil could see some positive movement and Gold is looking weak as of now on the back of positive market breadth. If ISIS and Ukraine issue emerges out stronger than commodities will run up including crude oil. Stock Tips Commodity tips