Money on the markets
A maturing market amid the mayhem
Sensex climbs 5.1 pct, expiry watched
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. 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.
The Banking Index was up 6.6 percent on overall improvement in investor sentiments, while the Oil & Gas Index rose 6.4 percent on hopes of a recovery in the U.S. economy as crude oil prices rose toward $53 a barrel.
Tata Motors was up 3.2 percent at 166, ahead of the launch of the ultra low-cost “Nano”.
The 50-share NSE index ended 4.7 percent up at 2,939.90.
The top benchmark gainers included Ranbaxy, which rose 10.8 percent, Reliance Industries, which gained 7.5 percent, and Tata Steel which was up 10.39 percent.
FII data showed a positive net investment in equities of $12.3 million, while a net selloff was seen in debt of $39 million. Foreign funds have sold a net of $1.9 billion worth of shares so far in 2009. s The U.S. government’s move has certainly cheered investors globally, but there are still doubts over private sector participation and questions about who will end up paying the most for the clean-up.
Sensex, Nifty rally; Satyam falls
The Sensex closed 4.9 percent higher on Friday to post its biggest rise in three months, as investor confidence was bolstered by a jump in other Asian markets following positive news from the United States.
The benchmark closed 412.86 points up at 8756.61, supported by index heavyweights Reliance Industries (up 6.6percent), ICICI Bank (up 8.6 percent) and Infosys (up 5.6 percent).
Financial stocks across the world were boosted after Bank of America Chief Executive Kenneth Lewis said the largest U.S. bank was profitable in January and February
The BSE Realty Index was the frontrunner, closing 7.57 percent higher on hopes of a rise in demand for housing if there is a further rate cut.
Shares in Unitech, Indiabulls Real Estate, HDIL, DLF were up in the range of 5-12 percent.
There was good news for Satyam with investment banking sources saying about eight potential bidders had registered with Satyam to buy a 51 percent stake in the fraud-hit outsourcer.
Despite this, shares in Satyam closed 3.6 percent lower at 45.5 rupees.
Friday the thirteenth was a day that belonged to the bulls.Sensex took a much-needed dose of steriods and took off by 412 points.It has gained by 7.3% in past two sessions.
It may be too early to predict if recession has hit the bottom.A fall in IIP numbers in Jan. 09 of 0.5% was somewhat encouraging in sense that worst may have been contained.The health of real estate industry is still a cause of worry.It is not facing a ‘slow-down or recession’ but more serious a malaise called ‘melt-down’.
A revival in real estate demand should positively impact GDP growth.
c.bank has progressively brought down repo rates to 5%.It is hoped that more monetary reliefs would be forthcoming.But what is the wisdom in keeping PLR as high as 12.75-13.25%.Let us hope that Finmin shows impatience with such recalcitrant bankers who are doing more harm than good to industry.
Finally,the great Indian political drama due in April-May 09 remains a big uncertainity.The public wants a government with a clear agenda on economy and national security.
Amidst such amount of uncertainity,let us wait and watch the developments.However Sensex Futures are +18 points.This may point to a smiling Monday?
Sensex gains amid mixed econ data
The Sensex closed 2.25 percent higher on Thursday, as gains on Wall Street and positive inflation data boosted investor sentiments.
The benchmark closed 183.35 points up at 8343.75, supported by index heavyweights Reliance Industries (up 4.1 percent), ICICI Bank (up 8.1 percent) and Infosys (up 2.5 percent).
The BSE Auto Index was the frontrunner, closing 3.7 percent higher on data released on Monday indicating a jump of almost 22 percent in car sales from a year ago.
Shares in Ashok Leyland, Mahindra & Mahindra, Hero Honda and Maruti Suzuki were up in the range of 3-5.8 percent.
Tata Motors raced 6.8 percent to 145.95 rupees after the British government announced a 27 million pound ($37 million) grant to its Jaguar Land Rover unit.
Inflation data released on Thursday showed wholesale price index had risen 2.43 percent in the 12 months to Feb. 28, below the previous week’s 3.03 percent. A dip in inflation creates room for the Reserve Bank of India to reduce policy rates further. The RBI has so far cut its key lending rate by 400 basis points, while the government has slashed factory gate duties and service tax to protect growth and jobs.
There was gloomy news on the industrial front. Data showed factory output fell 0.5 percent in January from a year earlier, only marginally better than the previous month’s upwardly revised contraction of 0.6 percent.
When Dow Jones leads,Sensex follows.DJIA had gained in past two sessions so when Sensex returned after a break,it had do some catching up with global cues.What is more,Sensex Futures are +22 points which points to another positive day tomorrow.
Sensex bravely ignored news about fall in industrial output in Jan.09(Y/Y).It may be a sign of optimism that industrial production may start to regrow in April-June 2009.
The government must support this optimism by acting quickly and decisively.Let repo rates be reduced further,and bankers pass the benefit to the borrowers.
Sensex loses ground; Satyam jumps on renewed hopes
The Sensex closed nearly 2 percent down on Monday as worries over the world economy hit investor sentiments.
The benchmark closed at 8160.4, dragged down by index heavyweights Reliance Industries (down 1.4 percent), ITC (down 4 percent) and Hindustan Unilever (down 3.3 percent).
Jaiprakash Associates and Ranbaxy were among the top Sensex losers, falling over 5 percent and 4 percent respectively.
The benchmark index extended losses after a weak opening in European markets. Japan’s Nikkei struck a 26-year low on the fate of U.S. banks and renewed crisis in the United States as the government stepped in with another round of relief measures for AIG and GM.
The banking sector felt most of the heat with its index slipping 2.78 percent. Karnataka Bank dropped 8.18 pct, SBI slipped 4.8 percent and ICICI Bank ended 2.3 percent lower.
Shares in Satyam Computer closed 15.8 percent higher after the company kicked off a bidding process to sell a majority stake in itself and two potential suitors quickly confirmed their acceptance.
Larsen & Toubro shed 3.1 percent to Rs 561.80 after the company said it will go ahead and submit an expression of interest for Satyam.
The economy has taken a turn for more worse than the government is making us to believe.The continous flight of foreign capital is an indication that investors think that the Indian economy will take a long time to revive.Some economists are hinting at sub 5% GDP growth in Fy 2010.Overall mood is gloomy.
India faces a peculiar situation as it has to make a choice of a new government in April-May 2009.Economy and national security are 2 major issues in electorates’ mind.The outcome of elections is predictable in sense that there is likely to be a “hung” parliament.
Clearly,the unpredictabilty about fortcoming elections results have started to show on mood of sensex.
During past elections,we use to talk about a pre-election rally in sensex.Is that theory still valid?If yes,we may be at a brink of one.
Sensex gains on bargain hunting
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).
The BSE IT Index remained the frontrunner, closing 3.05 percent higher on the recent slide in the rupee. Shares in Satyam Computer gained 19.94 percent after the fraud-hit outsourcer won regulatory approval to sell a majority stake in itself. Wipro and Infosys were up around 3 percent each.
Selling pressure was seen in Maruti Suzuki, HLL and Ranbaxy, which were down in the range of 2-3 percent.
The Sensex remained volatile for most part of the trade but gained momentum on gains in European markets.
Strong voices came out this morning and spoke about the breadth in the Indian economy, which added to investor sentiments. A senior RBI official said there were no signs of financial crisis in India, while the chief economic adviser said India would be able to meet its fiscal responsibility targets.
Government data released today showed infrastructure sector output grew 1.4 percent in January from a year earlier, below an unrevised 2.3 percent in December.
Sensex ends flat, GDP data disappoints
The benchmark index shed 0.7 pct on Friday as disappointing growth data for the third quarter dampened investor sentiments.
Data released today showed the economy grew 5.3 percent in the December quarter from a year earlier, its slowest annual pace in almost six years, as the global economic crisis cut demand and exports.
It was below forecast of 6.2 percent and the previous quarter’s 7.6 percent.
Banks largely fell on worries about lower treasury gains from bonds trading that have supported their earnings in recent quarters.
Index heavyweight Reliance Industries sheds 1.9 percent, while Bharti Airtel was down 2.3 percent.
Tata Steel posted a consolidated net profit for the December quarter, beating forecasts for a loss. The stock closed up 5.6 percent at 172.35 rupees after being down about 4 percent before the results were announced.
The worst for Indian economy may not be over yet though GDP growth for 4Q 2009 shall certainly be better as it would be backed by rabi crop,and seasonal demand pull owing to the marriage festivies.At best,we could overall touch 6.9%(Fy 2009).
Mr Kshitij Anand’s observations regarding a skid in realty stocks is now a routine event.Realty companies performance is quite dysfunctional of market movement.Infact,real estate companies have become a ‘weapon of mass destruction’ for themselves,shareholders,prop.investors,P E investors,creditors,suppliers,auditors,e mployees etc.The government must now set up a committee to recommend ways for survival aptly called ‘Saving Realty.’
A reduction in repo/reverse repo rates is overdue.A 1% reduction may yet be a small measure-may be more bolder steps are required.Surely let us make a beginning.
Markets end higher on expiry day
Well things looked shaky in the morning with the Sensex in negative territory, but it managed to recover in late trade to close 52 points up at 8954.86.
Buying was seen in index heavy weights such as Reliance Industries, Infosys and Bharti Airtel. Autos appeared to be the flavour of the day with the BSE Auto Index closing 2.7 pct higher.
Tata Motors led the rally as investors’ hopes were restored with a rather delayed launch of the people car “Nano”.
Ashok Leyland, Amtek Auto and Maruti Suzuki were up in the range 4-7.2 pct.
Shares in Ranbaxy bore the brunt of the FDA statement yesterday that it had halted reviews of drug applications from Ranbaxy’s Paonta Sahib plant after it was found to have falsified data and test results. Shares in Ranbaxy closed 18 percent down at 169.95 rupees.
There was good news on the inflation front with data showing it had fallen to a 14-month low in mid-February as cheaper fuels fed into a slowing economy. However, it failed to impact the market.
Prominent losers today were ICICI Bank, HDFC and Hindalco, while Tata Motors, Maruti Suzuki and Grasim Industries wre top in the gainers list.
What we get to hear today from the government about growth figure in 3Q 2009 would possibly be on account of momentum of previous years.The growth is rapidly slowing.
The government needs to take urgent steps to revive exports,and build foreign exchange reserves.That rupee has softened to Rs.50/- vis-a-vis dollar is another worrying factor.
The government must boost production in manufacturing sector by making easy availability of finance.The repo rate needs to be brought down to 2%.The banks must have a disincentive if they are shy of lending.Let reverse repo rate be brought down to 1%.
Sensex snaps 2-day fall; expiry watched
After gaining nearly 2 percent during trade, the benchmark index pared gains and closed just 80.5 points higher at 8902, as cuts in factory gate duty and service tax triggered short covering ahead of the expiry of monthly derivatives contracts. The day belonged to auto and metal stocks, which appeared attractive on expectation the duty cuts on Tuesday will boost sales.
The BSE Auto Index closed 3 percent higher and the BSE Metal Index ended 1.2 percent up. Apollo Tyres, Tata Motors (trucks) and Ashok Leyland have slashed prices after yesterday’s announcement.
Banking stocks were firm on renewed hopes of an interest rate cut by the Reserve Bank soon. ICICI Bank, Karnataka Bank and Yes Bank were up in the range 1-2.68 percent.
Fraud-hit Satyam Computer Services rose nearly 3 percent to close at 45.05 rupees. SEBI has eased the norms for preferential allotment of shares by some companies, a move that should help Satyam find a strategic investor.
In the U.S., Federal Reserve Chairman Ben Bernanke on Tuesday said nationalization of big U.S. banks not at hand, bringing cheer to the market.
The slashing of factory gate duties and service tax appears to have driven the market up, but do you think the Sensex will be able to sustain the uptrend throughout the week, or will we see some volatility till the expiry of monthly derivatives?
It is indeed puzzling that the banks are still lending at rates like 9-10+ when the RBI itself has bought it down to 5.5%. It is indeed puzzling why no one is talking about this fact.
Excuses like they will loose customers are indeed lame. They are making money off this difference of 4-5& and accounting for that in the higher deposit rates. Shame on these banks, particularly the private enterprises, both foreign and domestic.
Why is the government keeping quiet here. Well, I am assuming they do not want to disturb the lobbies which during the election year.
I really hope the RBI will do something about this.
Duty cuts limit Sensex losses
The benchmark index started off on a shaky note and ended Tuesday’s session with losses of 0.24 percent after briefly hitting positive territory on the finance minister’s comments to reduce factory gate duties and service tax.
The sectoral picture looked weak with all sectors closing in the negative. The BSE Metal Index lead the pack with losses of 2.3 percent and was closely followed by the Banking Index which ended down 1.3 percent.
Shares in Satyam ended 3.4 percent lower with volumes of 8.2 million shares on the BSE. The board of Satyam hopes to invite expression of interest from potential bidders by the end of this week.
The market which was choppy throughout the day, gained momentum and briefly turned positive after acting Finance Minister Pranab Mukherjee said factory gate duties were being cut further and service tax rates lowered by 2 percent to boost economic activity.
The global financial system and economy is showing signs of weakening and this is hurting investor sentiments. On Tuesday Europe and Asia joined Wall Street’s sell off, sending world stocks to their lowest since April 2003.
It seems like investors are loosing confidence in the U.S. plan to tackle the growing financial crisis as credit losses and fears of recession grow. The Indian banking system too is under the scanner with banking stocks continuing their slide.
We have seen in the past that the RBI has reduced the key banking rate from 9 percent to 5.5 percent, but till today full benefit has not passed on to consumers as banks remain risk averse and enforce stricter lending norms.
We need a lot more than this to boost the sentiment…Elections are approaching.. There is political uncertainty as well..We are yet to know abt the so called big “third” expected Stimulus..
US stocks are at a 12-year low…Can we be happy and rally in such circumstances.. I really doubt!!
Stimulus hopes boost investor sentiments
The BSE Sensex ended on a strong note on Monday, extending gains to more than 3 percent on hopes of fresh economic stimulus measures and another round of rate cuts by the Reserve Bank of India (RBI).
Gains were led by heavyweights like Reliance Industries, which was up 3.3 percent; ICICI Bank, which rose 5.1 percent, and State Bank of India which added 2.6 percent.
Amongst sectors, the Metals Index topped the charts, gaining over 4 percent mainly on a surge in steel makers. Bhushan Steel jumped 16.98 pct while Tata Steel and Welspun Gujarat rose 7.2 pct and 7.3 pct respectively.
The Oil & Gas Index gained over 3 percent, helped mainly by a rise in Reliance Industries, which was up 3.3 pct at 1389.05, and ONGC which was up 5.95 percent at 721.6 rupees.
Among individual stocks, Satyam continued moving south, closing 2.7 percent lower at 46.1 rupees. Its chairman today announced that the board would decide on a long-term action plan by next week, including a possible sale of the company.
Shares of Piramal Healthcare, which surged 25 percent in early trade on reports of a likely acquisition by GlaxoSmithKline and Sanofi Aventis, ended 1 percent lower at 192.55 rupees as the current valuation does not convince the company for a sell-out.
On the global front, equities were weaker in Europe and Japan, but emerging markets were putting in a fifth consecutive day of gains, reflecting positive investor sentiments. Caution remained over the contents of both the U.S. stimulus package and a delayed plan to rescue the U.S. banking system.
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- Markets Weekahead: Rupee to stabilise
- Greek pro-bailout conservatives regain lead: polls
- Asian shares, euro creep up from lows, remain vulnerable
- BSE Sensex gains, tracks Asian indexes
- Brent crude rises above $107; Greece, Iran eyed
- Lessons from the Rock for Europe's banks
- Rupee off highs, but consolidation seen
- China to encourage private capital in banking industry
- Reliance Comm posts surprise Q4 profit jump
- Telecom Commission wants detailed study on airwaves auction price
The Wall
I think the momentum will be sustained..as the march ends the mutual funds would have by now accumulated a large amounts from investors and will gradually start participating in market..also many companies which have waited for the lowest level of market prices will hurry to buy back their shares as the prices starts to climb up..