Market mood and FII action in Indian stock market

market mood and FII action in Indian stock market

after announcing of infosys technologies result session begin for Indian company to com out with financial result for last quarter and yearly result for 2010-11

till now end of major results market moving in the range of nifty around 5700-5900 .nifty get full resistance around 5900 it seems hard to break this level of nifty and if nifty Cross this hurdle then we will see market can break its all time high .

result reaction in market is negative on all almost top company even companies perform better then last year but seems market hoping more positive approaches Indian company

reason for negative bias on stock market because of due to international crisis in gulf  as well financial problem in Europe ,in us market after lot of relaxation by fed and government to com out crisis start by mid 2008 still seems no hope for major improvement also due to these relaxation fiscal deficit rising everyday force dollar to comedown at all time low level against all currency , as we know USA lead the rally of all economic fundamanetal

economic condition for  year seems more badly and hope for world economy is worsen then hope

we try to understand us condition and stock market price in NYSE and London stock exchange, in my opinion few reason which makes dowjones and NASDAQ higher and higher now

1.lower interest rate by fed

after going in recession fed keeps interest rates lower for longtime help us company to show good profit in balance sheet due to no interest payment

2.relaxation by american government

the us government relax companies from duties and texes help to increase in profit even they not able to perform even satisfactory condition as before in

3.export revenue up

as falling price of dollar against all currency the exporter of usa get good growth in revenue front so they showing their financial results better even no significant growth in sales as quantity point of view

4. interest of fii in us market

due to lowest price for us stocks during recession and government steps all financial company reenter in us stock market with low risk and bargain hunting price of stocks and hope for better tommoro
5.higher inflation

higher inflation in all commodity and fuel prices help company to show good growth in balance sheets even they not performing well in sense of production and consumption side

6. uncertain in foreign country
financial copany who is invested in other stock market during reccsion  time in asia get good profit in stock prices pulling out money from Asian region booking profit as  they fearing of slowdown in economy in asia due to higher commdity and fuel prices makes a big fiscal deficit ,

these are some reason in my view help for dowjones and nasdaq stock market higer

 it may be possible my view is wrong as i am not a big economist and professional