Money on the markets

A maturing market amid the mayhem

from India Insight:

It’s time India bites the diesel bullet

"81 rupees?" asked an astonished TV anchor when an irate Bengaluru-based consumer called in after the recent 7.5-rupee hike in petrol prices. Perhaps cars that run on milk are now needed, the anchor suggested -- when the caller said the dairy product costs around 30 rupees a litre.

While milk-powered automobiles might be a distant dream, the reality remains that those relying on petrol vehicles will now need to do their budgeting again. If a falling rupee and high inflation were not enough, this steepest-ever rise in petrol prices will surely pinch.

The fact remains that petrol prices were decontrolled way back in June 2010. That move gave oil marketing companies (OMCs) freedom to revise prices and also gave the government some saving grace as ministers can now easily say that petrol prices are market driven.

Though the government cannot be blamed for this hike on paper, they do manage to influence OMC decisions. That is indicated by the fact that this hike comes after state elections and a day after the parliament’s budget session got over.

Why should the government control inflation?

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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.

Disappointing start to IPO season

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Oil India Ltd’s ads in newspapers and business glossies may help in building a much-needed tempo before its public offering of shares, but if the disappointing listing price of Adani Power and NHPC is any cue to go by, then the days ahead for costly IPOs may not be worry-free.

nhpcThe energy explorer, which deferred an IPO last year amid the global financial crisis, has lined up a $500-$600 million public offering which will open on September 7 and close on September 10. The price band has been set at 950 to 1,050 rupees a share.

Sensex ends flat after recovering early losses

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The BSE Sensex erased early losses to end flat, tracking global markets as concerns about the prospects for an economic recovery pushed key indices into negative territory.
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The market remained volatile ahead of the expiry of the current months derivative contract on Thursday. The rise in the benchmark was led by Reliance Industries, HDFC, BHEL and ONGC.

The 30-share sensitive index swung from an intra-day high of 14,394 to an intra-day low of 14,016 and closed 2.1 points lower at 14,324. The fifty-share Nifty ended 0.28 percent up at 4,247.

Sensex closes above 15000

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The BSE Sensex seesawed today, erasing early losses of as much as 1.8 percent, and finally closed above the 15,000 mark on hopes of a revival in the economy. Higher European markets also helped lift investor sentiments.

The 30-share sensitive index of the Bombay Stock Exchange swung from an intra-day low of 14,601 to an intra-day high of 15,026, and finally closed 137 points up at 15,008. The fifty-share Nifty ended 0.93 percent up at 4572.INDIA-STOCKS/JUMP

Profit-taking caps Sensex rise

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The BSE Sensex seesawed today, mainly on account of profit-booking after the benchmark closed at an almost nine-month high yesterday.

The 30-share sensitive index of the Bombay Stock Exchange swung from an intra-day high of 14,994 to an intra-day low of 14,608, and finally closed 34 points up at 14,874. The fifty-share Nifty ended 0.10 percent down at 4525.
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The main contributors to the benchmark’s rise were HDFC, Tata Steel, ICICI Bank and SBI.

Sensex at 9-mth high; investors cheer econ data

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The BSE Sensex traded firm on Monday as investors cheered improved manufacturing data at home and signs of recovery in the global economy.

The benchmark stayed mostly in positive territory, touching an intra-day high of 14,906 and finally closing 215 points higher at 14,840 – its highest close in almost nine months. The fifty-share Nifty ended 1.8 percent higher at 4529.

Sensex climbs 5.1 pct, expiry watched

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The Sensex ended 457.34 points up on Monday after a fresh plan to clean up the U.S. financial sector set off a strong rally across Asia.

Gains were led by Reliance Industries which rose 7.5 percent, NTPC (up 3.4 percent), ICICI Bank (up 7.3 percent) and Housing Development Finance Corp (up 8.4 percent) led the gains.
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The U.S. government, in its latest move to rescue the economy from the clutches of a deep recession, has introduced a $1-trillion plan to rid banks’ balance sheets of bad loans and securities.

Sensex gains on bargain hunting

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The BSE Sensex closed 1.56 percent higher on Friday as investors saw an opportunity in the battered market that had plunged to its lowest in three years in the previous session.

The benchmark closed at 8352.82, supported by index heavyweights Reliance Industries (up 1.8percent), NTPC (up 2.2 percent) and Bharti Airtel (up 2.1 percent).

Realty gains in volatile market

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The BSE Sensex today shrugged off shaky early trade and ended 0.6 percent higher on speculation the government would announce an economic stimulus plan in its interim budget.

On the global front, World stocks fell after five days of gains as investors fretted over U.S. plans to boost the economy and save its banks.

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