Money on the markets
A maturing market amid the mayhem
The BSE Banking Index outperformed other indices on Tuesday, gaining nearly 1 pct in a flat Mumbai market, with stocks like Bank of Baroda and IDBI posting good gains.
Optimism over loan demand in a growing economy is helping banking stocks, but rising interest rates is a concern as this could push up costs for manufacturers and tighten their margins.
Shares in Bank of Baroda surged more than 6 percent while IDBI gained 4 percent.
Among the bigger players, ICICI ended marginally higher while top lender SBI ended flat.
ICICI said it was raising its lending rates from Wednesday, following market leader State Bank of India’s similar move.
Sesa Goa, India’s largest iron ore exporter, saw its shares fall 8.9 percent on Monday to 322.55 rupees as it ended as the top loser in the BSE Metals Index.
India-focused miner Vedanta said on Monday it would hold 31-40 percent of Cairn India directly while Vedanta-controlled Sesa Goa would hold 20 percent.
Shares in Cairn India ended 4.3 percent higher on Friday following reports that India-focused Vedanta Resources was likely to take a 51 percent controlling stake for $8 billion to $8.5 billion.
The source said the deal is expected to be announced on Monday.
Vedanta Resources is in talks with Cairn Energy, which has a 62.37 percent stake in Cairn India, to buy a stake in the parent company’s Indian unit, both companies confirmed on Thursday.
Shares in Educomp Solutions fell 9.7 percent on Wednesday with institutional investors selling off in the education services provider after its disappointing April-June results.
Educomp reported on Tuesday net profit for the quarter rose 22 percent, but brokerages were concerned about falling margins.
Export-oriented software companies shed the most today, with the BSE IT index declining 1.4 percent after the recent rally in IT stocks.
Leading the index decline were heavyweights Infosys, Oracle Finance and TCS, which dropped 1.4 percent, 1 pct and 1.5 percent respectively. TCS and Infosys were the top Sensex losers too.
The BSE Auto Index ended 1.1 percent higher on Monday, buoyed by data that showed a record 158,764 cars were sold last month.
Data from the Society of Indian Automobile Manufacturers (SIAM) showed car sales rose 38 percent in July, as customer sentiment remained strong on hopes of strong economic growth and a fall in food prices.
The BSE Banking index ended down 0.6 percent on Friday as the top sectoral loser, with all but one stock in the index ending the day in red.
Top losers included Federal Bank, which slipped 2.3 percent and IDBI, which ended down 1.4 percent. Shares in SBI, India’s top lender, ended down 1 percent.
Thursday proved to be a good day for realty counters with many, including Unitech, posting decent gains.
The star performer in the index was Phoenix Mills, which gained 6.4 percent.
Unitech, one of India’s top listed real estate firms, rose 2.8 percent while rival DLF ended marginally in the green.
Technology shares rose on Wednesday as Indian firms cheered robust results and guidance from U.S. peer Cognizant Technology Solutions.
Cognizant on Tuesday reported a profit that topped market estimates for the sixth straight quarter, helped by a surge in discretionary projects, and also raised its 2010 revenue outlook.