Money on the markets

Sensex bounces back, closes 1.47 pct higher

After a sharp drop yesterday, the Sensex managed to climb 1.47 percent, helped by strong Asian markets.

The benchmark also managed to post its first quarterly rise since December 2007.

The rise was led by ITC (up 3.3 percent), SBI (up 4.3 percent) and Infosys (up 2 percent).

The top traded stocks on BSE included Unitech, GVK Power, Reliance Natural Resources and ICICI Bank.

The sectoral picture was bright as all indices closed in positive territory. The capital goods index ended 3.2 percent higher, the healthcare and realty indices closed 2.9 percent higher.

The financial year has ended on a positive note. What’s your Sensex target for the weekend?

Sensex ends 4.8 pct lower; below 10,000

The Sensex started the week on a negative note, closing 4.8 percent lower after a 12 percent rally last week.

The benchmark index ended at 9,568, having struggled throughout trade as investors booked profits. It had dropped over 5 percent just before close.

The fall was led by financial stocks such as ICICI Bank, HDFC and SBI.

Top among the Sensex losers were ICICI Bank, Tata Steel and JP Associates, all dropping over 12 percent.

Most sectoral indices succumbed to selling pressure and ended in negative territory. The banking index ended down 8.5 percent, while the metal and realty indices slipped over 7 percent each.

Satyam Computer slipped over 8 percent and was one of the top traded counters on the BSE.

Most stocks floundered as they tried to sustain the momentum gained in the previous sessions. Do you think we are again headed towards the 8,000 levels in weeks to come?

Sensex ends flat in choppy trade

The Sensex jumped nearly 50 points on Friday to end at 10,048.49, driven mostly by increasing optimism worldwide.

Gains however were capped by profit-booking in a market that has recovered considerable ground after Satyam unveiled the country’s biggest corporate fraud in early January.

The rally was led mostly by metals (index up 4.8 percent), health care (index up 2.8 percent), banking (index up 2.6 percent) and auto stocks (index up 2.2 percent).

Banking shares gained on improved global economic outlook and expectations of further monetary easing by the government.

The government has set a record gross borrowing target of 3.62 trillion rupees ($71 billion) for the year to March 2010. But increased borrowing is likely to impact interest rates as an increase in demand will edge interest rates higher.

Heavy selling was seen in index heavyweights Reliance Industries and Infosys Technologies.

The top gainers included Tata Steel (up 9.1 percent), Tata Motors (up 9.3 percent), Reliance Communication (up 8.9 percent) and Hindalco (up 5.2 percent).

Sensex climbs 3.4 pct to cross 10,000 mark

The Sensex jumped 335 points on Thursday to cross the 10,000 mark, driven by strong global markets and short covering in monthly derivative contracts.

There was positive sentiment in most Asian markets, which are seen to influence the Indian benchmark, after U.S. economic data showed that stimulus measures were starting to take effect.

The Indian rally was led mostly by capital goods (up 5.4 percent), power (up 4.02 percent), metals (up 3.9 percent) and banking stocks (up 3.3 percent).

The top gainers included Tata Motors (up 7.9 percent), Tata Steel (up 5 percent), L&T (up 6.1 percent) and Reliance Industries (up 2.1 percent).

The power sector saw good activity with Crompton Greaves (up 14.1 percent), BHEL (up 5.8 percent) and Tata Power (up 5.5 percent) sending the BSE Power Index higher by over 4 percent.

Akruti City, which ended down over 55 percent to close at 819 rupees, pulled the BSE Realty Index lower by 4.5 percent.

FII data showed a positive net investment in equities of $73.8 million, while a net sell off of $19.3 million was seen in debt.

Sensex gains in choppy trade

The Sensex ended nearly 200 points up on Wednesday as investors covered positions ahead of the monthly derivatives expiry.

The session was volatile throughout the day, with the benchmark gaining momentum towards the close of the trade.

The top gainers included Jaiprakash Associates, which gained 7.5 percent, Tata Power, which was up 7.1 percent, DLF which surged 6.2 percent and Reliance Industries, which was up 5.6 pct.

The realty sector saw good activity with Unitech (up16.7 percent) and DLF (up 6.2 percent) sending the BSE Realty Index higher by over 6 percent.

FII data showed a positive net investment in equities of $173.3 million, while a net selloff was seen in debt of $239.1 million

The rupee came off a one-week low, helped by the over 2 percent rise in the share market. The partially convertible rupee is now trading close to 51 per dollar. This volatility in the rupee is not a welcome sign for corporate India, as it will result in hedging losses and an appreciation in the rupee will result in depreciation of FII portfolio.

The 50-share NSE index ended 1.5 percent up at 2,984.35 after touching the day’s high of 2,996.

Sensex pares gains on profit booking

The Sensex ended 21.38 points down on Tuesday, erasing early gains of as much as 2.9 percent, as investors took profits after the market had risen more than 13 percent over the past two weeks.

Selling was seen in ONGC (down 2 percent), Reliance Communication (down 3.9 percent), Infosys (down nearly 1 percent) and Jaiprakash Associates (down 6.7 percent), while ICICI Bank, HDFC Bank and SBI were among the top gainers, rising 6.3 pct, 2.4 pct and 1.09 pct respectively.

Financial shares extended their rally after investors cheered the U.S. Treasury’s plan to free banks of up to $1 trillion in troubled mortgage securities and other loans.

The Banking Index was up 2.1 percent on overall improvement in investor sentiments, while the Metal Index dropped nearly 3 percent.

Reliance Industries, which has the biggest weight on the main index, was up nearly 1 percent at 1,451.65 as the energy firm gets ready to start pumping gas from its Krishna Godavari basin field.

The top benchmark losers included Hindalco (down 4.5 percent), Reliance Communication (down 3.9 percent), and Tata Steel (lower by 3.6 percent).

The 50-share NSE index ended flat at 2,938 after touching the day’s high at 3,017.

Sensex climbs 5.1 pct, expiry watched

The Sensex ended 457.34 points up on Monday after a fresh plan to clean up the U.S. financial sector set off a strong rally across Asia.

Gains were led by Reliance Industries which rose 7.5 percent, NTPC (up 3.4 percent), ICICI Bank (up 7.3 percent) and Housing Development Finance Corp (up 8.4 percent) led the gains. The U.S. government, in its latest move to rescue the economy from the clutches of a deep recession, has introduced a $1-trillion plan to rid banks’ balance sheets of bad loans and securities.

The Banking Index was up 6.6 percent on overall improvement in investor sentiments, while the Oil & Gas Index rose 6.4 percent on hopes of a recovery in the U.S. economy as crude oil prices rose toward $53 a barrel.

Tata Motors was up 3.2 percent at 166, ahead of the launch of the ultra low-cost “Nano”.

The 50-share NSE index ended 4.7 percent up at 2,939.90.

The top benchmark gainers included Ranbaxy, which rose 10.8 percent, Reliance Industries, which gained 7.5 percent, and Tata Steel which was up 10.39 percent.

FII data showed a positive net investment in equities of $12.3 million, while a net selloff was seen in debt of $39 million. Foreign funds have sold a net of $1.9 billion worth of shares so far in 2009. s The U.S. government’s move has certainly cheered investors globally, but there are still doubts over private sector participation and questions about who will end up paying the most for the clean-up.

Sensex sheds 0.4 pct, but gains 2.4 pct on week

The Sensex ended 35 points lower on Friday on profit-booking ahead of the weekend.

The top benchmark losers included Tata Motors, which slipped 6.2 percent, ICICI Bank, which was down 4.5 percent, and L&T which lost 4 percent.

The BSE Realty Index slipped over 4 percent. Shares in Akruti City fell 27.8 percent and DLF ended 1.3 percent lower.

The Capital Goods Index (down 2.5 percent) and the Bankex (down 1.95 percent) were amongst the other sectoral losers.

The BSE Metal index however bucked the trend and rose 1.6 percent

Satyam slipped 1 percent in trade to close at 43.9 rupees. It was the third most traded counter on the BSE.

Despite closing lower today, the Sensex was up 2.4 pct on week. What’s your take on the Sensex target for next week?

Inflation down but reforms needed to boost demand

The latest inflation data for early March may please authorities ahead of national elections. Political leaders will trumpet the fact that the government’s efforts have yielded results and the demon of inflation has finally been tamed.

But the early March number throws up some serious concerns. It signifies that the Indian economy has entered a phase of deflation for a temporary period. Demand in the economy is extremely subdued and fresh efforts are needed to restore confidence.

Farm crop output is likely to be robust and this may help in moderating prices but the problems with regards to supply bottlenecks have hardly been addressed. Ports, roads and reforms in agriculture must therefore be the focus of the new government which assumes power after the April-May elections.  Past experience has shown that a tardy monsoon can upset calculations overnight.

There is very little time to lose and massive reforms across all sectors are needed to get the economy moving again. Much will depend on the government which is voted in after the elections.

Such low level of wholesale price inflation, the most widely watched inflation measure in India, throws up another worry. Real interest rates are still high and authorities must nudge banks to lower them to push demand and restore confidence in the economy.

The central bank and the government have taken timely action but now it is up to the commercial banks and firms to take the benefits of the stimulus packages to the consumers.

There is still room for more stimulus measures and the new government will have to immediately hit the ground running to sustain a 6-7 percent growth and protect jobs in a country which hardly has any social security.

Sensex ends flat, inflation heads towards zero

The Sensex closed 25 points up on Thursday after paring early gains, as worries about the economy and political uncertainty weighed on investor confidence.

The benchmark gained 1.2 percent in early trade, but lost ground on profit taking and closed at 9,001.

Top Sensex gainers included Sun Pharma, HDFC and Sterlite Industries, which rose in the range of 2.3 to 4.1 percent.

The BSE Realty Index was the best performer amongst sectors, ending 2.4 percent higher.

Among the star performers were Mindtree Ltd, which rose 32 percent, NIIT, which climbed 15.8 percent, and Akruti City which gained 10.7 percent after yesterday’s rise of 27.5 percent.

Data released today showed inflation heading towards zero in early March and analysts tipped it would soon turn negative, opening the way for the RBI to cut rates further to stimulate growth.