Money on the markets
A maturing market amid the mayhem
India’s benchmark stock index did reasonably well in the first half of 2010 as compared to its emerging market peers. The Sensex gained 1.4 percent during the period, and outperformed China’s Shanghai Composite Index and Brazil’s Bovespa which declined 9.6 percent and 26.8 percent respectively.
Shares in Reliance Industries, India’s top listed firm which has the heaviest weight in the index, barely changed during the period, but a Supreme Court ruling on a gas dispute and Ambani brothers reconciliation kept the company in focus.
Banking stocks performed well during the period, with the sectoral Bankex posting gains of more than 7 percent. Shares in SBI, India’s largest lender rose marginally, but private lender HDFC Bank jumped 12.6 percent during the period.
Among other sectors, oil & gas index rose 3.85 percent whereas the realty index was battered and posted losses of 17 percent.
Shares in cigarette-to-hotel business chain ITC rose 2.6 percent on Wednesday to top the list of Sensex gainers on better earnings expectations.
The stock, which closed at 304.75 rupees, was among the big gainers on the BSE FMCG Index which topped the sectoral list with a rise of 1.9 percent.
Shares in software services firms rose on Monday on heavy investor interest, helped by global recovery and improving order visibility.
The BSE IT Index jumped 3.7 percent with shares in top firms TCS and Infosys gaining 2.85 percent and 4.3 percent respectively. Infosys also ended as the top Sensex gainer.
When the finance minister presents the budget, the stock market moves one way or the other.
And like every year this will dominate the news.
Over there and everywhere.
Is that fair? Or convincing?
Some of the analysis will follow a pattern.
If the stock market goes up, the budget may be described as successful because it didn’t “rock the boat”.
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 Economic Times said the company was close to a nearly $6 billion acquisition and the likely target was the assets of petrochemicals firm LyondellBasell.
The 50-share Nifty index gained over 3 percent on Wednesday to close above the 4,700 mark led by gains in stocks like Reliance Industries, ICICI and Infosys.
Stock market enthusiasts had almost given up hope after losing an average 52 percent in 2008, when the benchmark Sensex recorded its first annual fall after six years of gains. But a rally since the start of March has bought the smiles back.
By September 30, as many as 10 equity funds more than doubled their net asset values as fund managers bought into the global panic, data from global fund tracker Lipper, a Thomson Reuters company, showed. During the same period 145 Indian equity funds outperformed the 30-share Sensex, which returned 73 percent.