Money on the markets
A maturing market amid the mayhem
Telecom stocks had a bad year with top counters such as Bharti Airtel and Reliance Communication slipping 8 and 23 percent respectively in 2009.
The overall market however gained as much as 80 percent during the year.
The Sensex ended 81 percent higher at 17465 and gained more than 7,000 points, its biggest yearly gain since 1991.
A price war among telecom operators discouraged investors as there were concerns about future profitability of such companies.
MTNL was another telecom stock that ended the year in the negative, slipping nearly 7 percent. Stocks such as Idea Cellular gained 6.7 percent and Tata Tele rose 23 percent.
The BSE Small-Cap Index gained over 1 percent on Wednesday even as the overall market ended weak, with the Sensex slipping 58 points.
Topping the index was Nitin Fire, which jumped 20 percent in trade. Eight stocks in the index gained over 10 percent.
Shares in power and utility firm Reliance Power jumped nearly 5 percent on Tuesday after the company said it expected to start generating more than 3,000 megawatts of power by 2012.
Shares in the company rose over 6 percent in intra-day trade and finally closed 4.9 percent higher at 154 rupees with volumes of 2.8 million shares.
2009 was the year of recovery for India Inc.
Economic data indicates that India is on the path of recovery. The stock market has bounced back smartly from its lows in March. IPOs made a comeback as investors’ risk appetite improved.
How was the year for you? Did your investments work? Which was your favourite stock pick or investment avenue?
Telecom gear maker ITI Ltd jumped after the government extended until September 2010 a requirement for state-run telecoms to source 30 percent of equipment orders from it.
Shares in the counter jumped almost 17 percent to a 52-week high of 53.20 rupees before ending 11.2 percent higher at 50.65.
The BSE Metal index gained over 4 percent on Wednesday and topped the sectoral indices as the benchmark stock index ended up over 500 points.
Shares in Hindalco rose 7.7 percent and Gujarat NRE Coke added nearly 6 percent to end as top gainers in the index. Sterlite Industries gained 5 percent.
BSE Banking Index ended 1.16 percent higher on Tuesday powered by gains in India’s top private lender, ICICI Bank which contributed most of the rise.
Shares in ICICI Bank, (up 1.9 percent), SBI, (up 0.9 percent), Yes Bank, (up 4.3 percent), Kotak Mahindra Bank, (up 2.04 percent) and Axis Bank, (up 1.34 percent).
Shares in Reliance Industries, India’s top listed firm, dropped over 2 percent on Friday and ended as the top loser among Sensex components.
Losses in Reliance contributed the most in dragging the benchmark lower by 174 points. The energy major’s shares have slipped nearly 5.5 percent over the week.
Market participants will soon have to reschedule their morning routine as Indian bourses — the BSE and NSE — are set to extend their daily trading time by 55 minutes from January 4, 2010.
The markets will now open at 9 am and close at their normal closing time of 3:30 pm, but the question is — who would actually benefit with this move? Is it becoming more a battle between the two exchanges to win market share?