Stars & stripes comes to the rescue of d st

1. Stars & Stripes Comes
to the Rescue of D St
POTHOLES AHEAD? Sensex up 517 pts as investors take
solace from Wall St rebound, but US recovery brings
back spectre of Fed rate hike

2. Contd..
Stocks staged a remarkable recovery on Thursday but worries over whether
the year's second-biggest single-day rally can sustain lingered after Thursday
night's bullish US GDP data.
India's stock indices posted their highest single-day gains in almost eight
months on Thursday , rejuvenated by Wednesday's rebound on Wall Street
and a 5.3% surge in China's battered Shanghai Composite index. Traders
covered bearish bets ahead of the August derivative series expiry while
domestic institutions extended stock purchases, insulating the market from
unabated selling by foreign investors. NSE's Volatility Index, an indicator of
traders' expectations of near-term risks in the market based on Nifty options
values, dropped 13.61% to 22.04 after New York Federal Reserve President
William Dudley said the possibility of a rate hike in September seems less
compelling with the recent market turmoil posing a threat to the US
economy .

3. Contd..
Concern over the dollar's recent strength amid earlier indications of a rate
hike by the US Federal Reserve in September had added to worries about
China's downturn. But revised second quarter US gross domestic product
growth came in at a much better than expected 3.7% on Thursday putting
the possibility of a September rate hike back on the table. US stocks soared
after the data release as concerns over the fading strength of the economy's
recovery were proved unfounded. But a rate hike by the Fed Reserve may
not be great news for emerging markets, which have been pounded by
relentless selling in August by global funds. On Thursday , the BSE Sensex
rose 516.53 points, or 2.01%, to close at 26,231.19.NSE's Nifty gained 157.10
points, or 2.02%, to close at 7,948.95, their biggest gain in a day since
January 15. Analysts warn that turbulence could be far from over though
downside to India could be limited due to its rapidly improving
macroeconomic fundamentals.

4. `WORST OVER FOR INDIA'
“Global sentiment will remain volatile but the worst is over for the Indian
stock market,“ said Sanjeev Prasad, senior executive director & co-head,
Kotak Institutional Equities. “The performance of the market hereon will
depend on domestic factors such as earnings outlook, rate cuts by Reserve
Bank of India and economic reforms.“ Foreign institutional investors net sold
shares worth Rs 3,347 crore on Thursday, extending their selling to the
seventh straight trading session. These investors have dumped shares worth .
16,500 crore in the period. Domestic ` institutions, which bought shares
worth ` . 2,600 crore, have pumped . 13,000 crore in the past seven trad` ing
sessions. “We need to be cautious about the fact that global risk-on or risk-
off can cause massive volatility,“ Arvind Sanger, managing partner,
Geosphere Capital.

5. LAPPING UP STOCKS
Fund managers said cheaper valuations after the 8% fall in the
benchmark indices till Wednesday have prompted them to lap up
beaten down blue chips.
The price-to-earnings ratio of Nifty has fallen to almost 14.7 times
2016-17 earnings, from 17.5 times before the recent correction. On
Wednesday, it had fallen to 12.6 times FY16 earnings, below its 10-year
historical average. On Thursday, mid and small cap indices rose about
2.5%, outperforming the blue chips. Analysts said the recent correction
had made these stocks cheaper but they may not rally in the same
manner as seen earlier this year.

6. For details and bookings contact:-
Parveen Kumar Chadha… THINK TANK
(Founder and C.E.O of Saxbee Consultants & Other-Mother
marketingandcommunicationconsultants.com)
Email :-saxbeeconsultants@gmail.com
Mobile No. +91-9818308353
Address:-First Floor G-20(A), Kirti Nagar, New Delhi India Postal Code-110015