Posts filed under 'Sensex'
For a change, the Indian market found strength in its own numbers even as investors in rest of the world showed long faces and vented their anger at the ‘unkind cut’ by Fed chief by pulling down indices. The healthy industrial production numbers for October helped the domestic market buck the trend and keep the 30-share Sensex in the positive zone.
But if you think the good times are going to last, the pessimists among the analysts club beg to differ. These naysayers will have you believe that the growth won’t be sustained in the coming months. But that’s for the analysts to discern. For investors aligned to the bulls, it was another day in the sun.
For the record, the benchmark Sensex closed at record high for the second straight session to 20,375.87, up 84.98 points or 0.42%, after falling as much as 1% in early trade. The Nifty ended at 6159.30, up 62.05 points or 1.02%. Small- and mid-cap indices continued to outperform their frontline counterparts. Gainers outnumbered losers (2,139:750) on BSE.
Shares of software exporters dropped over concerns that the dollar may weaken further against the rupee, with the US economy still facing threats of a recession.
To quote Credit Suisse note on emerging markets, “India’s growth has exhibited a low correlation with that of the US since 2000. However, between 2001 and 2007, the economy has become increasingly open, with the share of exports in GDP doubling to 30%. As a result, exports and real GDP growth are probably more exposed to a sharp downturn in the US than in the past. We estimate that for every 1 percentage point (pp) drop in the US real GDP growth rate, the Indian economy’s pace of growth could slow 0.5-1 pp.”
Most Asian markets dropped sharply on Wednesday, mirroring the fall in the US market on Tuesday, as it was felt that the 25-basis-point cut in the interest rate by the US Fed would not be enough to prevent the world’s largest economy from slipping into a recession.
Analysts said a 50-basis-point cut would have increased the prospect of fresh foreign fund inflows into emerging markets such as India.
The provisional data for foreign institutional investments (FIIs) on Wednesday (after the rate cut) may not be very encouraging for the bulls. FIIs net sold Indian shares worth Rs 385.2 crore, while domestic financial institutions net bought shares of Rs 115.83 crore, according to NSE data.
Indicators in the derivatives segment pointed to a positive undertone on Wednesday, after flashing caution signals on Tuesday. The implied volatility (IV), which reflects expectations about the market’s future volatility, of 6,100 and 6,200 Nifty, puts quoted at lower IVs than that of their corresponding calls.
The fact that even out-of-money-puts had lower IVs than their corresponding calls, suggests that traders no longer feel the necessity to buy puts to hedge their portfolios.
Also, the huge creation of open interest in Nifty December futures coupled with the rise in Nifty December’s premium vis-a-vis S&P Nifty to 30 points, is indicative of a build-up of long positions.
“Despite the stronger data, we judge that industrial output will continue to face head winds from past interest rate hikes, rupee appreciation and softening world demand,” Lehman Brothers’ Sonal Varma, said in a note to clients.
Source:http://economictimes.indiatimes.com/
December 14th, 2007
Mumbai (PTI): The Bombay Stock Exchange benchmark Sensex went up by 122 points in early trade today on sustained buying by funds in heavy-weight stocks, despite weak global trend.
The 30-share index, Sensex, which gained 85 points in yesterday, added 122.24 points to touch 20,498.11 points in the first five minutes of trade.
The wide-based National Stock Exchange index, Nifty, also rose by 26.10 points to 6,185.40.
Trading sentiment was firm despite a weak trend in the Asian markets such as Singapore, Hong Kong and Korea, marketmen said.
Source: http://www.hindu.com/
December 14th, 2007
MUMBAI: The benchmarks opened slightly higher but slipped into the red tracking losses in key Asian indices. The Mid-caps, however, were buoyant extending previous day’s gains.
At 10:05 am, the National Stock Exchange’s Nifty was flat at 6160.95. The index touched a high of 6185.40 and low of 6137.90 in trade so far.
“Yesterday, Nifty opened negative but took support at 6005. Thereafter it recovered smartly and made a high of 6175. Now, Nifty can come up to 6189 and if it sustains above this level, it could test 6247 and above that 6320 levels. Nifty has support at 5923. Thus, one should keep a strict stop-loss of 5923 for all the long positions,” said Emkay Share and Stock Brokers.
The Bombay Stock Exchange’s Sensex was up 62 points or 0.3 per cent at 20,437.76, making a high of 20,498.11 and low of 20,367.90.
Biggest Sensex gainers were Mahindra & Mahindra (up 2.69%), ITC (1.53%), BHEL (1.16%), Hindalco Industries (1.14%), State Bank of India (1.01%) and DLF (0.97%).
Bharti Airtel (down 1.95%), HDFC (0.91%), Wipro (0.66%), Tata Consultancy Services (0.41%) and HDFC Bank (0.34%) were the losers.
The BSE Mid-cap Index was up 1.12 per cent and the BSE Small-cap Index was 1.74 per cent higher.
Across BSE, 1387 shares advanced and 137 declined.
In the rest of Asia, the Nikkei lost 1.86 per cent, the Hang Seng shed 1.1 per cent and the Straits Times lost 0.58 per cent.
Source: http://economictimes.indiatimes.com/
December 14th, 2007
Call it an impact of the hopes of rate cuts in the country or renewed interest by foreign investors, BSE’s Realty Index has outperformed big brother Sensex in the last 11 trading sessions — from the day when the Maharashtra government scrapped the Urban Land Ceiling and Regulation Act (Ulcra), which is expected to free 17,000 acres of land in Mumbai.
The realty index zoomed by 23 per cent in this period, while the Sensex jumped by only 5.7 per cent.
In the last three trading sessions, the index has risen by 720 points, whereas the Sensex has gone up by 302 points. Ever since its launch on July 10 this year, the realty index has gone up by nearly 69 per cent till date, while the Sensex’s rise was 33 per cent — less than 50 per cent of the rise in property stocks’ tracking index.
Analysts tracking the sector attribute various factors such as heavy investment by FIIs, hopes of US rate cuts and expectant rate cuts in the country and a psychological impact of repeal of Ulcra in Maharashtra, resulting in the sudden spurt of the realty index.
“A number of fund houses have raised money to invest in infrastructure, which will eventually flow into realty stocks and FIIs are getting clearances to invest in Indian stocks. We expect that money to flow into real estate stocks,’’ said an analyst of a national brokerage firm.
The US Federal Reserve’s rate cuts by 25 basis points (bps) on Tuesday and expectations of similar cuts by the Reserve Bank of India (RBI) was another trigger for the sharp rise, say analysts.
If the central bank cuts rates again, the demand for housing in the country would improve and realty companies would gain from that.
Source: http://www.business-standard.com/
December 14th, 2007
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