Money on the markets

A maturing market amid the mayhem

Good day for banking stocks

The BSE Banking index closed 2 percent higher on Thursday while the broader market ended 1.6 pct marginally over the 17,000 mark.

HDFC Bank ended 2.7 pct higher, Axis Bank gained 3.4 pct while SBI shares rose 1.2 pct up.

The Reserve Bank of India (RBI) may still raise interest rates before a scheduled policy review in July, HSBC had said, after data showed on Monday the economy grew an expected 8.6 percent in the final quarter of fiscal 2009/10.

Do you think the expected tightening in monetary policy may weigh on banking shares?

Reliance Comm surges on report of Etisalat talks

Shares in Reliance Communications jumped 11 percent on Wednesday following a newspaper report that UAE’s Etisalat was in advanced talks to buy a quarter of the Indian firm for 180 billion rupees.
Etisalat confirmed it is looking to buy a stake in an Indian mobile operator.

A stake sale could mean a change in strategy for Reliance Comm owner Anil Ambani, who has made several smaller acquisitions to expand his firm overseas.

Oil and gas index slips 2.5 pct

Shares of oil and gas firms came under pressure on Tuesday because of profit booking, which sent the sectoral index down 2.5 percent.

Energy major Reliance Industries fell more than 3 percent and ended as the top loser in the sector.

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