Money on the markets
A maturing market amid the mayhem
The BSE Oil & Gas sector ended 2.2 percent higher on Monday, the first full day of trade after the government raised fuel prices as part of a plan to move towards a market-determined price regime.
The government freed up state-subsidised petrol prices and raised the prices of other fuels as pressure to trim a budget deficit seemed to outweigh concerns about its political impact.
Among state-run oil marketing companies, Indian Oil Corporation rose 5.4 percent, while HPCL and BPCL climbed 8 percent and 3.4 percent respectively.
Fuel accounts for a quarter of India’s estimated $25.6 billion subsidy bill. The hike in fuel prices could help reduce the fiscal deficit from the projected 5.5 percent of 2010/11 GDP and free up revenues for other programmes.
Shares in Reliance Natural hit an intra-day high of over 6 percent on Friday after chairman Anil Ambani signed a revised gas supply agreement with brother Mukesh’s Reliance Industries.
The counter, which had opened lower, trimmed gains made after the announcement and closed 3.2 percent up at 65.95 rupees. Shares in Reliance Industries closed 1.1 percent higher.
Shares in Kotak Mahindra Bank fell as much as 3.4 percent during trade on Thursday after Dutch financial services group ING sold its 3.1 percent stake in the bank.
The sale of 10.8 million shares in stock market block deals, which helped ING raise $175 million, was done at 750 rupees a share, sources told Reuters. Another source had told Reuters yesterday that it would be in the range of 730-750 rupees each.
Kotak Mahindra, which the market values at roughly $6 billion, ended 2.6 percent lower at 762 rupees with volumes of 0.1 million shares.
The BSE Capital Goods Index ended 1.3 percent lower on Wednesday while most of the other indices ended the day in green.
The big names that led the fall were L&T, which ended 3 percent lower, Havells India, which dropped 1 percent, and Thermax, which slipped 1.8 percent.
The BSE Oil & Gas Index recouped early losses and ended marginally up on Tuesday after the oil minister said a decision on fuel prices would be taken on Friday.
Earlier this month, the government deferred a decision on raising fuel prices, the second time in a year that it has tripped on pushing the politically-sensitive reform measure that could help trim a budget deficit.
UK bank Standard Chartered’s Indian depositary receipts traded near their offer price on Friday in their debut but below their equivalent London close.
The IDRs opened at 105 rupees, rose as much as 2.9 percent to 108 rupees but also slipped to as low as 100.60 rupees in early deals, before closing at 103.05 rupees.
Shares in Bharti Airtel rose over 6 percent in trade after the telecoms major closed its $9 billion acquisition of Zain’s Africa operations.
Bharti Airtel, which is now the world’s fifth-biggest mobile carrier by subscriber base following the deal, ended 5.5 percent higher in a broader market that saw a marginal rise of 0.2 percent.
The BSE Banking Index fell 1.1 percent on Tuesday in a broader market that slipped nearly 1 percent on worries over the euro zone debt crisis.
Financials also reacted to RBI Deputy Governor Subir Gokarn’s comment that the central bank would continue tightening monetary policy at a steady pace.
BSE Metal index dropped 4 percent while the broader index closed down 1.9 percent lower on Monday as investors joined a global sell-off after weak U.S. jobs data and concerns over a potential debt crisis in Hungary hit risk appetite.
Shares of metal manufacturers were trading sharply lower as London copper slumped to near eight-month lows and Shanghai metals hit their downside limit.