India Insight

Markets this month: Tata Motors, M&M top Sensex gainers

By Ankush Arora and Sankalp Phartiyal

The BSE Sensex jumped 2.9 percent in August, the seventh consecutive monthly gain for the benchmark index in 2014. The broader Nifty closed 3 percent higher, its fourth straight month of gains.

A man looks at a screen across the road displaying the election results on the facade of the BSE building in MumbaiThe Indian stock market hit multiple record highs in August, helped by relentless foreign buying, easing of geopolitical tensions and continued optimism about the domestic economy’s revival.

On Friday, India will release GDP growth data for the April-June period. Asia’s third-largest economy likely grew at its fastest in two years in the first quarter of the current fiscal year, a Reuters poll predicted.

But many Indian CEOs say there are no signs yet of economic improvement, even as they are optimistic that Prime Minister Narendra Modi will spur economic growth, according to a poll conducted by the Economic Times newspaper. The survey coincides with 100 days of Modi as India’s premier.

On Sept. 1, the Supreme Court will seal the fate of over 200 coal blocks it declared illegal on Monday.

Stock market glitches in India over the past few years

India’s stock market, like its peers across the world, is no stranger to sudden trading halts due to technical glitches. On Thursday, India’s second-biggest exchange operator BSE halted trading across all its segments due to a network outage. Trading on the NSE bourse was not affected.

The three-hour outage was the longest in recent memory and follows three earlier outages in a year that has seen stocks scale fresh peaks on expectations of economic revival from a new government.

The BSE, Asia’s oldest stock exchange, has more than 5,000 listed companies. Data from the World Federation of Exchanges shows shares worth $85 trillion were traded on the BSE last year, compared to $479 trillion for the NSE, India’s leading stock exchange.

Markets this week: ITC, Infosys top Sensex losers

By Sankalp Phartiyal and Ankush Arora

Brokers trade on their computer terminals at a stock brokerage firm in Mumbai May 13, 2014. REUTERS/Danish Siddiqui/FilesThe benchmark BSE Sensex fell in three of five sessions this week, as higher crude prices hurt sentiment and the cabinet’s decision to delay a hike in gas prices disappointed investors. Caution also prevailed ahead of the June derivatives’ expiry on Thursday and fears of more violence in Iraq prompted investors to pare positions.

A Reuters poll on Thursday forecast the 30-share Sensex hitting 27,750 points by the end of December, following a brief correction after the budget.

For the week, the BSE Sensex ended 0.02 percent lower. Investors are now awaiting the new government’s first budget on July 10.

Markets this week: Mahindra and Mahindra, RIL top Sensex losers

By Ankush Arora and Sankalp Phartiyal

The BSE Sensex and Nifty, India’s main stock indexes, both fell 0.5 percent this week as worries over escalating Iraq tensions, a weak domestic monsoon and profit-taking weighed on sentiment.

On Friday, global oil prices inched towards a nine-month high on increased risks of supply disruption from Iraq. Investors fear spiraling crude prices and a weak monsoon could add to inflation woes and hurt India’s current account deficit.

The monsoon has covered half of India four days behind schedule, failing to recover from a late start that has slowed the sowing of summer crops.

Markets this week: Sensex surges 5 percent on hopes from Modi, ONGC rallies

By Ankush Arora and Aditya Kalra

The BSE Sensex ended at a record closing high on Friday, rising 5 percent during the week, as Indian shares rallied on hopes of faster economic recovery after Narendra Modi became India’s prime minister last month.

Markets have high hopes that the new Modi-led government would push for policy reforms and end bottlenecks that have stymied growth in Asia’s third-largest economy.

On Friday, the Sensex hit a new life high of 25,419.14 while the broader Nifty index touched its all-time record high of 7,592.70. Both indexes are now up about 20 percent this year.

Brokerages bullish on Sensex, revise targets after Modi win

By Sankalp Phartiyal and Aditya Kalra

Indian stock markets rallied to record highs in May with the benchmark BSE Sensex breaching the 25,000 mark for the first time after Narendra Modi won a clear mandate to govern Asia’s third-largest economy.

Markets surged as Modi’s Bharatiya Janata Party (BJP) and its allies stormed to power on promises to revive India’s struggling economy, which is growing below 5 percent, and create more jobs for its 1.25 billion people.

The Sensex touched a record high of 25,375.63 on May 16, the day election results were announced, while the broader Nifty hit a life high of 7,563.50 the same day. The Sensex is up 18.1 percent so far this year.

India equity funds ride Modi rally in May, post best month in five years

India’s diversified equity funds outperformed the broader markets in May and recorded their best monthly performance in five years, as stocks rallied on hopes of an economic revival after the Narendra Modi-led Bharatiya Janata Party (BJP) won a decisive election mandate.

Equity funds clocked an average return of 11.57 percent in the month, the highest since May 2009 when funds rose 30.2 percent, data from fund tracker Lipper, a Thomson Reuters company, showed. In comparison, the BSE Sensex rose 8 percent.

Though blue-chip stocks gained, high exposure to better performers in the mid- and small-cap segment, and sectors such as financials and infrastructure, helped schemes outperform the broader markets, experts said.

Modi boost helps Sensex rise 8 pct in May, Sesa jumps 51 pct

By Ankush Arora and Sankalp Phartiyal

A road sign stands next to the Bombay Stock Exchange building.Indian shares rose sharply and scaled new record highs in May, with the benchmark index rising above 25,000 points on hopes of an economic revival after pro-business Narendra Modi became India’s new prime minister.

The BSE Sensex touched a life high of 25,375 points on May 16, the day results for the five-week election gave Modi’s Bharatiya Janata Party a clear mandate to govern Asia’s third-largest economy. In May, the index rose 8 percent, its best monthly performance since October.

The BJP and its allies stormed to power by winning 336 of the 543 seats in the Lok Sabha, riding on Modi’s promises to create more jobs and push India back on the high growth path. Stocks rallied across the board, while the Indian rupee also touched multi-month highs.

Markets this week: Sesa Sterlite, NTPC top Sensex gainers

The benchmark BSE Sensex rose 2.4 percent this week as domestic-oriented stocks surged on hopes the incoming BJP government would keep up its promises to kick start an economy whose growth has dipped to its slowest in a decade.

Shares in companies such as Coal India, that are expected to benefit from an economic revival, and utilities performed well.

Sentiment was also boosted after Reuters reported that the finance ministry was working on a roadmap for cutting welfare spending and reining in deficit.

Markets this week: BHEL, Sesa Sterlite top Sensex gainers

By Ankush Arora and Sankalp Phartiyal

India’s stock market closed the week on a record-breaking note as the Bharatiya Janata Party led by Narendra Modi swept the Lok Sabha election, handing the Congress party its worst ever result.

Surpassing 25,000 for the first time on the day of counting, the benchmark Sensex jumped 4.9 percent this week. The broader Nifty, which also scaled a fresh peak on Friday, rose 5 percent.

In 2014, overseas investors have so far invested 6.5 billion rupees in Indian equities, contributing to a 14 percent gain in the main stock indices.

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