BEST COMMODITY MCX TIPS :

As in commodity market Crude prices has fallen by over 60 per cent since last June. I don't recall any analyst predicting such price capitulation. It was a rare and difficult event to foresee but with crude prices trading at eight year lows, one of the most crowded trades still remains a sell on rallies in oil. Every market participant is talking about the new normal in energy prices, the shale revolution, end of the commodity super-cycle and the beginning of the end for OPEC member nations and their pricing power.

 

Where else Gold climbed above $1,300 an ounce on Wednesday for the first time since August 2014 as a softer dollar, worries about the global economy and hopes of stimulus measures from the European Central Bank (ECB) fueled demand. Because the dollar fell 0.3 per cent against a basket of currencies, mostly due to a stronger yen after the Bank of Japan kept its monetary policy steady against expectations for more easing. Well this issue seems to be about central banks control of the situation - there is this impression that things are getting a bit out of control again. But the risk here for gold is that tomorrow and then next week at the Fed meeting they reassert their control.

INDIAN STOCK MARKET TIPS :

In Indian stock market S&P BSE sensex rose to a fresh record high for the third straight day in a row. The benchmark BSE index crossed the 29,000 mark for the first time ever in the history of BSE and hit an all-time high of 29,060.41, while the broader NSE index touched a record high of 8,774.15. With the stock markets hitting fresh highs almost on a daily basis. Well, for the investor's we can say that they should look at growth focused sectors such as banks, realty, metals, and they should try and increase their exposure in these sectors, while keeping away from sectors such as IT and pharma which may under perform in 2015.

                                                            

On the other hand Foreign Institutional Investor (FIIs) on a cumulative basis have purchased shares worth over Rs 6000 crore in the last five trading sessions, as per provisional data, while domestic institutional investors (DIIs) remained net sellers in the same period. So, It's looks like the market is building in a lot of optimism ahead of the Union Budget 2015, which will be tabled in the Parliament on 28th February. 

The government is expected to announce a slew of reform measures to push growth. There are also expectations of lower interest rates in 2015. Well these kind of movements will happen and we saw a good amount of flows coming from foreign investors post the rate cut. So, the more reaffirmation of such events or actions will see more and more attraction of money going forward.

STOCK MARKET EQUITY UPDATES

Equity Update :

In today's Indian Stock Market the benchmark indices are holding onto intraday gains after a positive start taking cues from Asian peers. Investors are optimistic of reforms and business-friendly policies in the Budget 2015.In future as India is expected to grow at 6.3 percent this year and 6.5 percent in 2016 by when it is likely to cross China's projected growth rate, the IMF said today while terming the new government's reforms as "promising" but insisted that their implementation is key. In 2014, India's growth rate was 5.8 percent against China's 7.4 percent, said the World Economic Report update released by the International Monetary Fund. India's growth rate in 2013 was five percent as against China's 7.8 percent.

Stock Market Updates for Today

Mahindra & Mahindra Financial Services Ltd slipped as much as 8.3 percent in trade on Monday after its consolidated net profit for the quarter ended December 2014, slipped 13.7 per cent to Rs 157 crore, weighed down by higher loan provisions and write offs. 

We can observe very good moment in India's NSE index rose for a third consecutive session on Monday to mark its highest level in nearly 1-1/2 months, BSE index up 0.6 pct; NSE index adds 0.5 pct. Shares to talk about Wipro results beat the street as its consolidated profits rose a modest 5% even as revenues from its technology business were relatively flat.

 

RBI surprised the street by cutting the repo rate from 8% to 7.75%. Though small, this 'between-the-meetingscut' has given the signal that the RBI is confident of achieving its inflation targets and the focus is shifting towards growth. Since the RBI has always wanted policy action to be consistent with long term rate stance, this cut heralds the start of a new 'rate cut cycle'.

The NSE bank index rose as much as 1.1 percent to a record high of 19,434.20 after the Reserve Bank of India cut interest rates by 25 basis points on Thursday and signalled it could cut rates further amid cooling inflation and government efforts to contain the fiscal deficit.