|
| Sensex up 495 pts on financial reform hopes |
| BS Reporter / Mumbai Jul 18, 2009, 00:44 IST |
|
Records its highest gain since May.
 Finance Secretary Ashok Chawla’s statement that the government would introduce seven Bills in Parliament, including pension and banking reform proposals, ensured that the markets ended the week on a high note.
The Bombay Stock Exchanges Sensitive Index, or Sensex, surged 494.67 points, or 3.47 per cent, to 14,744.92, its highest weekly rise since May. The S&P CNX Nifty added 143.55 points, or 3.39 per cent, to 4,374.95.
Together with gains earlier this week, today’s rise marks a sharp reversal of last week’s fall, when the Sensex slipped 9.45 per cent after Finance Minister Pranab Mukherjee’s Budget statement that contained little or no mention to key economic reforms.
Overall, the Sensex recovered sharply this week by 9.19 per cent — the highest in Asia — on better monsoon prospects, better-than-expected results from Goldman Sachs and Intel and several statements by key ministers, including the finance minister, on the fiscal deficit and economic reforms.
“Last week’s fall was a result of traders taking short positions because of the government’s borrowing programme and Indian Meteorological Department’s rain forecast review. This led to short-covering when the environment improved,” said Manish Sonthalia, fund manager, Motilal Oswal Securities.
US markets also moved up sharply during the week. The Dow Jones gained 6.94 per cent while Nasdaq jumped 7.35 per cent this week. In Asia, the Hang Seng surged 6.20 per cent and the Straits Times edged up 5.33 per cent.
“Foreign Institutional Investors have started operating in the last two or three days leading to a rise in the markets. Yet, it may not go beyond 4,450 and will find support at 4,200 levels,” said Deven Choksey, managing director, KR Choksey.
All the sectoral indices closed in the green for the week. The realty index rose the highest by 17.62 per cent. The bankex, auto and metal indices were up over 10 per cent.
DLF gained the most at 19.47 per cent. Reflecting the bullishness in the financial sector, ICICI Bank and HDFC were among the top five gainers at 18.05 and 14.41 per cent, respectively.
| LOOKING UP |
| TOP Sensex Gainers |
| Name |
Jul 17# |
% Chg* |
| Reliance Infra |
1150.00 |
8.44 |
| Mah & Mah |
778.65 |
8.07 |
| Jaiprakash Asso |
212.85 |
7.20 |
| ICICI Bank |
742.45 |
6.82 |
| Tata Motors |
316.00 |
6.68 |
| Hero Honda |
1638.10 |
6.49 |
| Hindalco |
84.20 |
6.31 |
| TOP Sensex Losers |
| Sterlite Ind |
587.650 |
-0.420 |
| NTPC |
205.100 |
-0.150 |
| Reliance Ind |
1933.400 |
-0.050 |
| * Over Prev Close # In Rs |
Motilal Oswal’s Sonthalia added: “With RBI’s policy review and FIIs’ expiry in the next two weeks, auto, bank and metals should be in focus.”
Besides the monetary policy review on July 28, market players would be looking forward to announcement of the government’s disinvestment plans, key corporate results and global cues.
|
|
|
|
|
|
|
|
|
|
 Read Business news in |  |
|
|
|
|
|
|
Advertisements |
|
|
|
|
|
|
|
|
|
|
Content Guide
