Money on the markets
A maturing market amid the mayhem
SBI’s chairman said that earnings of the bank are seen rising 30-35 percent in the current quarter, with retail loans growing at about twice the pace from the year earlier.
The banking index, which ended just 0.4 percent higher, has gained over 90 percent since April.
Shares in SBI closed at 1894 rupees, and have gained 78 percent since April. In terms of returns, India’s top private sector bank ICICI has outperformed SBI with a return of 138 percent during the same period.
The index was launched on August 24 to track the value of stocks for two years after listing. It currently has 50 stocks and the maximum weighting for a stock is capped at 20 percent.
Amtek Auto was the star performer in the auto index, with its shares surging nearly 16 percent. Its shares have jumped nearly 50 percent since July.
Investors in offshore and oilfield services provider, Aban Offshore, have a reason to party tonight – its shares jumped 27 percent to close at 1536 rupees, making it the top gainer on the Bombay stock exchange on Wednesday.
The company said on Tuesday that it expects revenue of $695 million (around 3,400 crore rupees) from two contracts it signed for deploying four rigs. The trading volumes in this counter were high and stood at 3.8 million shares, its highest single day volume since mid-May.
The company is in exclusive talks for a stake in South Africa’s MTN, a deal which will create the world’s No. 3 mobile firm. On Thursday, the two firms said they were extending talks till Sept. 30, their second such extension this year.
From the 463 stocks in the small cap index, around 30 posted double-digit gains, data from Thomson Reuters showed.
NDTV climbing over 14 percent and Anant Raj Industries up 12.1 percent were the top gainers in the mid-cap index on Tuesday.
The Sensex closed at 15,670 on Friday, the highest since mid June 2008, while the Nifty index closed at tad below 4,650, a mark closely watched by market participants.
Optimism has swept investors around the globe with good corporate results raising hopes that the worst of the financial crisis might be over.
Patni Computer, the top gainer in the index, rose over 12 percent after the company announced a 14 percent rise in Q1 profits. A company official said it will seek acquisitions in Europe and the Asia-Pacific to help lower its dependence on the United States.