EAC Cuts Growth Rate Forecast to 7.7%,Intra Day Trading Tips For Aug 14th.

14 Aug

Posted by Shyam as IntraDay Calls, Market News

Amidst concerns of weak economic scenario world over and in domestic arena, the Economic and Advisory council has forecasted a growth of 7.7% in the fiscal 2008-09. The earlier projected growth rate was 8.5% and it was 8.9% in average in the last 4 years. Even at 7.7% growth rate, India would be the 2nd fastest growing major economies of the world.

The outgoing EAC chairman Mr,Rangarajan said that :” there is a overall slowdown in the economy in all the major sectors like agriculture,services and industry.”Added to that the world economy is also not conducive to growth which has a significant impact on the Indian economy.

On the other hand EAC also expects the Indian share markets to bounce back by 2009.It feels the markets will be under pressure for another 6-8 months and then it might start to recover.The 5 day gaining streak came to an end and now a decline phase has started again with markets extending its losses for the second straight day.Sensex lost 119 points to close at 15,093 levels and nifty shut shop at 4529 levels losing 23 points.

Banking stocks were the worst hit ones yesterday with concerns of further write downs coming in from the second largest US bank,JP Morgan Chase.ICICI,HDFC Bank and BOB lost significantly.So its advised to remain way from banking stocks for a while and allow them to bottom out.The FIIs sold stocks worth Rs 4 billion yesterday taking their sell off to $6.4 billion in this year.

Some of the intra day trading tips given here yesterday did very well and here are some for today:Divis Lab(cmp 1595),ABB(cmp 900),Subex(cmp 99),Noida Toll Bridge(cmp 49),Vishal Info(cmp 245), GlenMark(cmp 635).