Money on the markets
A maturing market amid the mayhem
Shares in ICICI Bank rose over 5 percent on Friday after the Reserve bank of India left its short-term interest rates unchanged and only hiked banks’ CRR by 75 bps.
The counter ended 5.3 percent higher at 830 rupees with volumes of over 2.5 million shares.
Peer banks such as Canara Bank rose 4.6 percent, Allahabad Bank ended 4.3 percent higher, and SBI closed 2.7 percent up.
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Shares in Tata Steel, the world’s No.8 steelmaker by output, soared over 5 percent in intra-day trade and ended 4.8 percent higher at 585.55 rupees.
The stock, valued at $11.7 billion, nearly trebled last year, easily beating an 81 percent gain on the main index.
The small and medium enterprises (SME) sector, which accounts for almost 45 percent of India’s manufacturing output and 40 percent of its exports, is hoping the Reserve Bank of India (RBI) will keep its key rates unchanged in its policy review on January 29.
Last year had been shaky for the SME sector, but with the course of time and government intervention it regained its foothold in the market.
Shares in Software services firm HCL Technologies dropped on Monday as the company missed forecasts with quarterly profit dragged down a fifth by declining other income, forex losses and higher costs.
The counter ended 5.6 percent lower at 361.15 rupees with volumes of 0.3 million shares.
The ‘reform agenda’ understood as ‘market-oriented reform’ or giving more space to market mechanism in food and fuel economy seems to have been held up.
The government can not be seen to be doing away with subsidies just as prices are up. Its hand is stayed for now.
The BSE Capital goods index witnessed a sharp drop over 5 percent on Thursday as top stocks like Larsen & Toubro (L&T) slumped 6.8 percent after results.
Shares in L&T, which announced its quarterly numbers, closed at 1524 rupees after losing 112 rupees after it reported its quarterly sales dropped 6.1 percent. It also ended as the top Sensex loser.
Shares in Bharti Airtel, India’s leading telecom firm, gained 3 .4 percent on Wednesday and ended as the top Sensex gainer, even as the overall Mumbai market closed weak.
Other players like Reliance Communications and Idea Cellular managed to close in green as well.
Weakness in realty stocks on Tuesday sent the BSE Realty Index down 1.75 percent and to the top of the list of sectoral losers.
Top listed realty firms Unitech and DLF posted losses of 2.9 percent and 1.8 percent respectively. Sobha Developers, which dropped 3.8 percent, was the top loser in the index.
Banking stocks kicked off the week on a positive note, with good results from some banks sending the BSE banking index up 2.4 percent.
The Bankex was also the top sectoral gainer on the BSE.
Shares in HDFC Bank topped the list of Sensex gainers with a jump of 4.5 percent. Allahabad Bank added 4.8 percent to emerge as the top Bankex gainer.