India Insight

Markets this week: Sensex gains 1 percent, Tata Power surges over 10 percent

By Ankush Arora and Aditya Kalra

The BSE Sensex ended with gains of 1 percent in the week ending Dec. 6, as investor sentiment was boosted after exit polls indicated the Bharatiya Janata Party (BJP), seen by many as being more business-friendly, will win four of the five state elections conducted recently.

State elections are seen as a semi-final before the national polls next year. Elections are the key theme for the first half of 2014 and the recent rally in the stock market implies that a BJP government is no longer viewed as a low-probability scenario, UBS said this week. The investment bank has set a 2014 target for Nifty at 6,900.

Foreign institutional investors (FIIs) inflows for the year have crossed 1 trillion rupees, regulatory and exchange data showed. They have made net purchases of around $18 billion so far this year, Deutsche Bank figures show.

Here are the top five Sensex gainers and losers of the week:

GAINERS

TATA POWER: Shares in the Tata group company surged nearly 11 percent this week, outperforming a gain of 4.5 percent in the BSE power index during the same period. This is the second consecutive weekly gain for the stock, which despite these gains is still down 20 percent in 2013.

Last week, a senior official of the company said Tata Power is looking for more acquisitions as part of a multi-million dollar investment push into renewable energy.

India state elections: Exit polls give BJP the upper hand

By Aditya Kalra and Shashank Chouhan

The Bharatiya Janata Party (BJP) is likely to win in four of the five states that went to polls over the past month, exit poll surveys conducted by Cvoter and the India Today-ORG group showed. Such a victory will be a boost for the party and its prime ministerial candidate Narendra Modi ahead of the 2014 general elections.

The results for all the states, except Mizoram, will be announced on Sunday. Here’s what the exit polls forecast:

MADHYA PRADESH: The BJP has been ruling the state for 10 years, and exit polls indicate the party will retain power in the 230-member assembly. The Congress party’s campaign, led by Jyotiraditya Scindia, helped it improve its tally as compared to 2008, but the BJP still has the upper hand, polls showed.

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