|
| Markets up on GDP numbers, easing Dubai debt concerns |
| BS Reporter / Mumbai Dec 01, 2009, 21:22 IST |
|
The stock markets rose sharply on Monday on the back of strong gross domestic product (GDP) numbers and firm global cues. The Sensex closed at 16,926, higher by 294 points, and the Nifty re-gained the 5,000 mark to close at 5,026, up 84 points, on a steady day of trade. The Sensex had surpassed the 17,000 mark (17,096) in intra-day trades.
The gain helped Sensex end November up 6.5 per cent, erasing most of a 7.2 per cent fall in October, which was its weakest monthly performance in 2009.
The economy grew 7.9 per cent in the second quarter of this financial year, up from 6.1 per cent in the previous quarter, due to good show by industry and services.
The manufacturing sector grew 9.2 per cent as against 5.1 per cent a year earlier. Financing, insurance, real estate and business services rose 7.7 per cent as against 6.4 per cent a year ago.
The Planning Commission said the GDP projections for 2009-10 might have to be revised upward. And Finance Minister Pranab Mukherjee expressed confidence that the economy would grow over 7 per cent in this financial year.
Global markets were rattled last week after the government in Dubai, part of the UAE, sought a debt rescheduling for flagship conglomerate Dubai World. Banks around the world issued denials about being heavily exposed to Dubai debt.
Banks climbed as most of them were not likely to see a material impact from Dubai’s debt woes. Top private lender ICICI Bank climbed 1.5 per cent while smaller rival HDFC Bank rose 0.5 per cent.
“The GDP data positively surprised the market. Also, the realisation that we will not be really hurt by the Dubai crisis helped,” said Rajen Shah, chief investment officer at Angel Broking.
World equities generally steadied on Monday as the United Arab Emirates shored up its banks after last week’s shock.
“Though the market is more than fairly priced, liquidity flow will continue to help the market,” said Shah.
The main index has rallied more than 75 per cent in 2009, fuelled by foreign funds in excess of $15 billion.
IT bellwether Infosys Technologies rose 2.4 per cent after falling 4.3 per cent in the past two sessions, and larger rival Tata Consultancy climbed 2.3 per cent, after declining 4.5 per cent over Thursday and Friday.
“IT stocks had fallen a lot last last week. Since the sector outlook is positive, it led to some bottom-fishing in counters like Infosys and TCS,” said KK Mital, head of portfolio management services at Globe Capital.
Dealers said there was also fund buying in the telecom sector, whose shares have fallen sharply in recent months due to a pricing war.
Other leading Sensex gainers were Bharti Airtel (up 5.6 per cent to Rs 2,990, Tata Steel (up 5.6 per cent to Rs 575) and Jaiprakash Associates (up 5.2 per cent to Rs 225). Tata Motors and Hindalco gained between 3 per cent and 4 per cent each.
The top losers were Hero Honda (down 1.4 per cent to Rs 1,720), Maruti (down 0.5 per cent to Rs 1,555) and SBI (down 0.1 per cent at Rs 2,238).
The market breath was strong. Of the 2,824 stocks traded on the BSE, there were 2,017 advances as against 733 declines.
Deven Choksey, managing director, KR Choksey, said, “Monday’s upmove was a result of various factors, including short-covering, new money, easing Dubai fears and good GDP numbers. The possibility of a weaker dollar, post the Dubai turmoil, should attract more money into the Indian markets. The Nifty is likely to trade in the range of 4,800-5,155 in December.”
|
|
|
|
|
|
|
|
|
|
 Read Business news in |  |
|
|
|
|
|
|
Advertisements |
|
|
|
|
|
|
|
|
|
|
Content Guide
