SHARETIPSINFO ->Weekly Review for the Week November 10th - 14th 2008 “Market reward the most patient investor” Sensex: (9964) Nifty: (2973) 07.11.08 KEY STATISTICS: NIFTY-2976 OIL - $61/ barrel. GOLD-Rs 11700/10gram. INFLATION-10.73% MARKET ROUND UP: On Monday market opened on the bullish note because of liquidity support declared by the RBI on Saturday.Sensex on Monday closed with the gain of 550 points or 5.6% at 10337.68.The broad based nifty gained around 5.48% to close at 3043.85. After selling for the last two week FII were net buyers in the equities market as SEBI has banned FII from short selling .They were seen covering their short position. PSU banks cut down PLR by 75 basis point this week after consultation with the finance minister. Barack Obama has been elected as the 44th President of the USA.O n Wednesday market gained on hope that new president would take steps to revive the revive the US economy. Friday witnessed huge volatility in the price and Sensex settled wit the gain of 230 points at 9970. The week ended SENSEX rose by 176.23 or 1.8% points for the second consecutive week to end at 9964.3.The broad based NIFTY rose by 3%or 87 points to close at 2973. SECTORAL GAINER: REALTY 18.40% POWER 12.25% FMCG 9.30% CAPITAL GOODS 8.80% PSU 8.78% SECTORAL LOSER: IT 6.70% TECK 3.50% OIL&GAS 2.90% METAL 4% AUTO 1% MAJOR SENSEX GAINER: RANBAXY LAB 28.90% DLF 27.50% RELINACE ENERGY 23% JAIPRAKASH ASSOCIATES 22% ITC 13.50% SBI 12.60% MAJOR SENSEX LOSER: STERLITE 12.70% RELIANCE IND 11.10% TATA STEEL 8.80% SATYAM COMPUTER 8.80% INFOSYS TECHNOLOGY 8.60% TATA MOTORS 7.70% INDICES TREND IN PAST 1 YEAR: NIFTY SENSEX VALUE % CHANGE VALUE % CHANGE I WEEK 2885 3% 9788 1.80% 1 MONTH 3513 -15% 11328 -12% 3 MONTH 4529 -34% 15167 -34% 6 MONTH 4982 -40% 16737 -40% 1 YEAR 5695 -47% 19035 -47% TREND IN WORLD INDICES THIS WEEK: VALUE %GAIN/LOSS DOW 8943 -4% NASDAQ 1647 -4.20% FTSE 4364 -0.28% NIKKEI 8583 -0.07% TREND IN FII ACTIVITY THIS WEEK: FIGURE IN CRORE After a long time FII turned out to be net buyer in the market to the tune of 1777.3 CRORE. KEY EVENTS OF THE WEEK: Cash strapped mutual fund wooing investor with big return. Indian companies profit growth took a sharp beating in the second quarter. Triveni rural retail put on block. IMF seeking Saudi cash for bailout fund. LIC picks up Rs15000 CRORE of NCD in last six month. Wipro to buy Citi tech arm for $150 million. Export growth slips to 10.4% in September. Kingfisher defaults on lease rental for 4 jets. GMR to buy Indonesian coal mines. In second half of the October loan off take plunged by 88% to Rs 8000 CRORE from Rs65000 CRORE in preceding fortnights. America gets its 44th president, Barack Hussein Obama. Major steel producers mulling output cut to counter the falling price. Loan to get cheaper, PLR slashed by 75 basis points. Output cut by auto companies puts the brakes on ancillaries. General motors’ may run out of operating cash this fiscal. ECONOMICS AND POLITICS: America is the engine of growth to the world economy. Slowdown in the economy of US means slowing of world economy. Presidential election and the stock market has very important linkage. Stock market has a four year cycle. In US from 1942 to 2002 around 15 stock market cycle has occurred each averaging around 4 years. Dates of Peaks & Troughs Peaks/ Troughs S & P Price Length of Bull Market (years) Bull Market Rise (%) Length of Bear Market (years) Bear Market Decline (%) Full Cycle in Years 4/42 Trough 7.47 5/46 Peak 19.25 4.08 158% 10/46 Trough 14.12 .36 -27% 4.45 6/48 Peak 17.06 1.68 20% 6/49 Trough 13.55 .99 -21 2.68 1/53 Peak 26.66 3.56 97% 9/53 Trough 22.71 .69 -15% 4.25 8/56 Peak 49.74 2.88 119% 10/57 Trough 38.98 1.22 -22% 4.10 12/61 Peak 72.64 4.14 86% 6/62 Trough 52.32 .54 -28% 4.68 2/66 Peak 94.06 3.62 80% 10/66 Trough 73.20 .66 -22% 4.28 11/68 Peak 108.37 2.15 48% 5/70 Trough 69.29 1.49 -36% 3.63 1/73 Peak 120.24 2.63 74% 10/74 Trough 62.28 1.72 -48% 4.36 9/76 Peak 107.83 1.97 73% 3/78 Trough 86.90 1.45 -19% 3.42 11/80 Peak 140.52 2.73 62% 8/82 Trough 102.42 1.70 -27% 4.44 8/87 Peak 336.77 5.03 229% 12/87 Trough 223.93 .28 -34% 5.31 7/90 Peak 368.95 2.61 65% 10/90 Trough 295.46 .24 -20% 2.85 2/94 Peak 482.00 3.31 4/94 Trough 438.92 .17 -9 3.48 7/98 Peak 1186.74 4.25 170% 8/98 Trough 957.28 .08 -19% 4.30 3/00 Peak 1527.45 1.58 60% 10/02 Trough 776.75 2.5 -26% 4.02 Averages 3.08 yrs 93% 0.94 yrs -26.4% 4.02 Presidential election in US and market trough. Presidential Term Month and Year of Market Bottom Year During Presidential Term When Market Bottomed 1942 – 1944 4/42 2nd Year 1945 – 1948 10/46 2nd Year 1949 – 1952 6/49 1st Year 1953 -- 1956 9/53 1st Year 1957 – 1960 10/57 1st Year 1961 – 1964 6/62