Money on the markets
A maturing market amid the mayhem
The Sensex closed at 15,670 on Friday, the highest since mid June 2008, while the Nifty index closed at tad below 4,650, a mark closely watched by market participants.
Optimism has swept investors around the globe with good corporate results raising hopes that the worst of the financial crisis might be over.
In India, 82 percent of companies covered by a study by the ET Intelligence Group reported net profits compared with 70-72 percent in the previous three quarters.
As the market rallied on Friday, as many as 100 stocks on the Bombay Stock Exchange touched their 52-week highs. The list included some top companies like Bajaj Auto, BHEL, Infosys, Maruti Suzuki, Tata Power and ITC.
Patni Computer, the top gainer in the index, rose over 12 percent after the company announced a 14 percent rise in Q1 profits. A company official said it will seek acquisitions in Europe and the Asia-Pacific to help lower its dependence on the United States.
The past two months have been exciting for auto stocks. Helped by better car sales and solid earnings by auto companies, the BSE Auto Index has gained over 20 percent since June, a sharp contrast to the Sensex’s meagre gain of around 4 percent over the same period.
Car sales in India jumped an annual 7.8 percent in June, climbing for a fifth straight month and signifying that demand for autos was picking up.
A lacklustre day for the market, but a good day for realty stocks.
The BSE real estate index made smart gains of nearly 4.6 percent on Tuesday, a day after the finance minister made additional budget proposals that could benefit the common man.
Pranab Mukherjee proposed a 1 percent interest subsidy on home loans up to one million rupees for one year and tax breaks for developers if they complete real estate projects by March 2012.
Reliance Industries, India’s top listed company, struggled on the first trading day of the week after posting disappointing results on Friday.
The energy major slipped 3.7 percent to close at 1939 rupees, dragging the BSE Oil & Gas Index down 3 percent.
The benchmark’s rise was led by Infosys Technologies, ONGC and Tata Steel, which were up in the range 2-6 percent.
The BSE Sensex ended 2.6 percent up on Thursday on good corporate results and robust economic data.
Data released on Thursday showed infrastructure output grew 6.5 percent in June while the Wholesale Price Index fell 1.17 percent in the 12 months to July 11.
The BSE Sensex erased early morning gains of over 2 percent and ended 1.46 percent down on Wednesday as weak sentiments across Asia downplayed investor sentiments.
The 30-share sensitive index swung from an intra-day high of 15,234 to an intra-day low of 14,955 and closed 128 points lower at 15,062.
The BSE Sensex extended gains on Monday to cross the 15,000 mark as hopes of recovery in corporate earnings boosted confidence worldwide.