Money on the markets
A maturing market amid the mayhem
The benchmark index shed 0.7 pct on Friday as disappointing growth data for the third quarter dampened investor sentiments.
It was below forecast of 6.2 percent and the previous quarter’s 7.6 percent.
Banks largely fell on worries about lower treasury gains from bonds trading that have supported their earnings in recent quarters.
Years back, while on a trip to Jaipur, I had run into a rather energetic man who insisted on jumping the queue at the post office. When requests failed, I asked him why he was in a hurry.
“I have a savings account here,” he said proudly in Hindi, clutching a dog-eared booklet with currency notes tucked in. Ram Prasad, the 42-year-old cycle rickshaw driver had his way and left flashing his stained teeth.
Well things looked shaky in the morning with the Sensex in negative territory, but it managed to recover in late trade to close 52 points up at 8954.86.
After gaining nearly 2 percent during trade, the benchmark index pared gains and closed just 80.5 points higher at 8902, as cuts in factory gate duty and service tax triggered short covering ahead of the expiry of monthly derivatives contracts.
The day belonged to auto and metal stocks, which appeared attractive on expectation the duty cuts on Tuesday will boost sales.
The BSE Auto Index closed 3 percent higher and the BSE Metal Index ended 1.2 percent up. Apollo Tyres, Tata Motors (trucks) and Ashok Leyland have slashed prices after yesterday’s announcement.
The benchmark index started off on a shaky note and ended Tuesday’s session with losses of 0.24 percent after briefly hitting positive territory on the finance minister’s comments to reduce factory gate duties and service tax.
The sectoral picture looked weak with all sectors closing in the negative. The BSE Metal Index lead the pack with losses of 2.3 percent and was closely followed by the Banking Index which ended down 1.3 percent.
The Sensex closed at 8843, pulled down by over 3 percent losses in Reliance Industries and a 7 percent slide in ICICI Bank.
After rising over 1 percent in early morning trade today, the benchmark index pared gains and just managed to close 27 points higher at 9042, as worries over grim domestic and global economic outlook capped gains made on hopes of an interest rate cut.
The day belonged to technology stocks which appeared attractive post a weakening in the rupee (it continues to trade close to 50 per dollar levels). The BSE IT index closed 2.4 percent higher. Shares in Tech Mahindra gained over 12 percent, Wipro was up 5.4 percent and Infosys ended 2.5 percent higher.
The benchmark index seesawed all through the day and closed 20 points lower at 9015, pulled down by banks that slipped on concerns about their profit margins. The Sensex had dropped below the 9,000 mark in early trade.
Index heavyweight Reliance Industries gained 2.1 percent while Bharti Airtel was up 1.3 percent.
The budget disappointment continued to weigh on investor sentiments, sending the Sensex down 2.9 percent to close a little above the 9,000 mark. Indian markets also took cues from the weakness in global bourses.
Index heavyweights dragged the benchmark lower, with top listed firm Reliance Industries slipping nearly 4 percent. ICICI Bank ended down 5.6 percent, while Infosys was lower by 3.5 percent in trade.
The budget failed to deliver on investor expectations of a stimulus plan for sectors such as autos and construction, while announcing that spending was likely to increase later in the year. For complete coverage of Interim Budget 2009/10, click here.