Money on the markets

A maturing market amid the mayhem

Realty gains in volatile market

February 10, 2009

The BSE Sensex today shrugged off shaky early trade and ended 0.6 percent higher on speculation the government would announce an economic stimulus plan in its interim budget.

On the global front, World stocks fell after five days of gains as investors fretted over U.S. plans to boost the economy and save its banks.

According to SEBI, FIIs were net buyers today. Their net investment in equities was $71.7 million, while their net sales in debt was $1.3 million.

India’s industrial output in January is expected to be better than November and December as there were encouraging signs from the cement, steel and auto sectors. In November, factory output rose 2.4 percent from a year earlier, after declining 0.3 percent in October.

Trade Minister Kamal Nath on Tuesday assured that the government was committed to taking more measures to prevent job losses. Exports lobby groups estimate job losses of 10 million by March-end, as the global recession clouds over the Indian industry.

Sectorally, the Realty index was the best performer, ending 6.58 percent higher. Stocks like DLF jumped over 9 percent, while rival Unitech gained 9.45 percent.

Prominent among the other Sensex gainers were BHEL and Mahindra & Mahindra which rose 4.2 and 3.3 percent respectively. Tata Motors and Reliance Infrastructure were on the losing side of the index.

The Metals index, which faced a lot of selling pressure, sheds 1.43 pct. Hindalco, Ispat Industries, SAIL were down 1-3.89 percent.

One measure that can shore up the economy is extra spending in infrastructure and preventing further job losses. The government has already announced two stimulus packages since December, which included a 4 percentage point cut in factory gate duties and 200 billion rupees of extra spending to aid the slowing economy.

Do you think these measures will help bring back confidence in the market?

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