The Opening Bell : Markets to consolidate gains

Indian stock markets saw a spurt in later half's trade yesterday with sensex surging 140pts to end at 12109. Nifty also inched up 45 points. FII's continued their buying spree and have already shopped for Rs. 3700 crore in the month of September.

As far as triggers are concerned, news flow have been positive. US fed has decided to leave the interest rate unchanged which is in line with market expectations. Asian markets are ruling firm and are expected to remain buoyant throughout the day.

Back to India, the markets are expected to consolidate on yesterday's gain and move in a narrow range today. Action will be more stock specific. However, investment Guru advice investor to adopt a cautious approach as sensex climbs higher levels. Invest only in fundamentally good stocks and do not get carried away with rumors. In other words, one should avoid to repeat the mistakes of May2006. One good strategy in at these levels would be to keep booking profits at regular intervals before participating in next round of rally. This would ensure that your profits do not get eroded by a sudden fall at higher levels.

Coming to stock specific actions, Skumars Nationwide is expected to hog limelight. The stock is set to see action in the coming weeks with positive newsflow. The company is in advanced stage of bidding for one of the largest American home furnishing manufacturing and distribution company, America Pacific. If S Kumars manages to strike this deal, it will add Rs 400-500 crore to its home furnishing business which has just been launched under the brand named Carmichael House. The acquisition will also help integrate S Kumars business at various levels, First, it will give the company access to various retail stores in the US; second, it will help underwrite back-end facility and third, source better for the Indian market.
The company is also in talks to acquire few foreign brands which wouldincreasee company;s brand inventory. So watch out for the action !