Money on the markets
A maturing market amid the mayhem
The BSE Sensex fell for the second consecutive day and ended 1.59 percent down on Thursday as an unexpected fall in industrial output data for December added to concerns over a deteriorating global economic outlook.
Industrial output data fell 2 percent in December from a year earlier, the second fall in three months — further evidence of falling demand at home and abroad. In this scenario, more rate cuts by the RBI cannot be ruled out.
There was some respite as inflation fell to 4.39 percent at the end of January; the lowest in just over a year. Economists expect inflation to continue to fall for some time.
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.
Investors were relieved as markets ended with strong gains on the last trading day of the week, tracking rises in Asian bourses. The BSE Sensex gained over 200 points to close at 9301.
Gains were led by heavyweights like Reliance Industries, up 4.4 percent; ICICI Bank, up 4 percent, and Infosys Technologies which rose 2.1 percent.
Indian markets remained volatile throughout the day but the Sensex managed to close nearly 1 percent higher, tracking gains in global bourses.
A weak early morning session was followed by a bounce back, leading the benchmark index to 9302. But it pared gains later to close at 9149.
The BSE Sensex broke a two-day climb and fell marginally to 0.2 percent on Thursday as investors squared their position on the last day of expiry.
The BSE auto index gained 1.3 percent as autos bucked the trend. The rise was led by buying in Maruti Suzuki, Mahindra & Mahindra and Bharat Forge as the government cut state-set fuel prices, a move that could help in slowing down inflation.
FIIs remained net buyers of $6.2 million in equity and $0.5 million in debt, as against net sellers of $59.4 million yesterday and $85.3 million on January 27.
It was another bright day for Indian investors as gains across world markets allayed concerns over risk aversion and triggered short covering ahead of the expiry of monthly derivatives contracts on Thursday.
The BSE Sensex shrugged off the RBI decision to keep rates steady and closed 3.8 percent higher as gains in global markets triggered short covering ahead of the expiry of monthly derivatives.
In today’s policy review, the Reserve Bank left its lending rate steady at 5.5 percent and its reverse repo rate unchanged at 4.0 percent at its policy review on Tuesday. It has also kept the cash reserve ratio unchanged at 5.00 percent.
The Sensex took a hit on Friday as disappointing corporate results outlook and fading hopes of a rate cut sent it down to its lowest close in two months. The benchmark index dropped 1.5 percent to close at 8,674.
Energy giant Reliance Industries bucked the trend and rose 1.8 percent on lower-than-expected fall in quarterly profit.
Outsourcer Satyam jumped 31 percent. U.S.-listed iGate has told the Satyam board that it is interested in buying the firm.
Bears ruled the day as the Sensex slipped 2.4 percent to close at 9,100 levels. Fears that a deepening global economic crisis would trigger funds outflow weighed on sentiments as investors waited for cues form U.S. President-elect Barack Obama’s inaugural speech.
Index heavyweights Reliance Industries, Bharti Airtel and ICICI led the fall. Financial stocks took a beating after a record loss by Britain’s RBS.