Money on the markets
A maturing market amid the mayhem
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.
But is that enough for say the gross national happiness?
Food and fuel inflation has been in the news for a while.
The government has no short-term control over supply side issues causing price rise like a bad monsoon leading to a low harvest or floods, but it can control the rising demand by reining in liquidity.
It is guarded on doing so for fear of stifling growth.
Is that fair to the poor?
Prolonged inflation redistributes income in favour of the rich (who possess non-monetary assets) as the value of money, whatever little of it may be held by the poor, goes down.
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.
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.
Realty stocks closed the week on a positive note even as the market ended in the red. The BSE Realty Index gained over 3 percent in trade and was the top sectoral performer.
All shares in the index, except Phoenix Mills, ended positive with Peninsula Land gaining nearly 10 percent.
Shares in Maruti Suzuki dropped 3.5 percent on Wednesday after the Reserve Bank said foreign institutional holdings had reached a trigger limit and fresh purchases would need its prior approval.
Its shares closed at 1462.6 rupees and ended as the top loser among Sensex components. It was also among the top losers in the BSE Auto Index.
Shares in Mahindra Satyam gained 6.1 percent on Tuesday to close at 106.05 rupees. IT stocks in general posted decent gains, boosting the BSE IT Index 0.4 percent.
Shares in Mahindra Satyam have notched good gains, rising over 8 percent this year. Its shares had hit a low of 11.5 rupees almost a year ago after the then chief, R Raju, had confessed that the company’s profits had been overstated for years.
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.
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?