Crb Casts Cloud On Good Monsoon Forecast
The stock markets were expected to take off and touch a new peak with some more encouraging corporate results flowing in. However, the impending fear of an oil price hike, coupled with the disturbing news of the CRB scandal pulled trading sentiment to a low.
The BSE Sensitive Index closed on May 30 at 3755.10 points against the previous Friday's close of 3706.37, a gain of a mere 48.73 points. The NSE-50 Index closed at 1051.90 points this week against the previous close of 1033.70, a gain of 18.20 points.
Such was the impact of CRB scandal on the stock market that it ignored the reports of a normal monsoon. The stock markets moved in a narrow range and closed marginally higher than the previous week's close.
The prime minister has recently made it very clear that the hike in petro price is inevitable. Now, by delaying the announcement, the government is doing more harm to the economy. Though the market has discounted this news, the market is bound to react as and when the announcement is made, said a Mumbai-based equity analyst.
The hectic activity witnessed in the B1 group in the past few weeks has slowed down. The volume in the B1 group has plummeted and the focus has now shifted back to the pivotals, said a BSE broker.
The market was agog with rumours of several other non-banking financial companies being in trouble, following the CRB scandal. The Reliance scrip made impressive gains during the past week. The scrip moved up on rumours of bonus issue. This apart, the Ranbaxy scrip firmed up and closed at Rs 624.50 against the previous Friday's close of Rs 557 at the BSE.
NEW DELHI: Prime Minister Gujral's categorical statement ending the looming uncertainty of the petroleum price hike coupled with reports of good working results by some corporates and Reliance's plans to announce a bonus issue boosted the sentiment at the Delhi Stock Exchange (DSE) during the week ended March 30.
Reflecting the overall market sentiment, the DSE Sensitive Index (Base 1983) rose by 10.45 points to close at 776.55 as against the previous week's close of 766.10 points.
According to analysts, when the market was on a decline, the trend was not widespread while the upswing in the latter half of the week was throughout with most of the scrips witnessing the same trend. "This augurs well for the coming weeks," they pointed out.
As the market has already anticipated the hike, ending of the uncertainty over the issue cheered it up, a broker said.
On the same day, the market was agog with reports that blue-chip Reliance Industries Ltd (RIL) is coming up with a bonus issue. This also boosted the sentiment in the last couple of days. Announcement of corporate results by some of the big companies had mixed bearings on the market. The positive effects of companies like Telco and Hero Honda announcing better than expected results were nullified by the poor results of Tisco and Sail.
However, good working results by some corporates in the latter half of the week pulled up market sentiment marginally, brokers said.
CALCUTTA: Resuming on a sluggish note, share values in the Calcutta Stock Exchange (CSE) declined sharply in the first half but bounced back in a big way following frenzied speculative buying in selected counters during the week ended on May 30.
However, improved results of Telco and rumours of a bonus issue by Reliance Industries counter reversed the trend. Reports that foreign institutional investors were extremely active with brisk purchases in fundamentally strong scrips helped in improving the sentiment and forced bear operators to enter into quick squaring up operation.
Reflecting the trend, the CSE new index dipped to a low of 409.70 points on Tuesday before recovering sharply to touch a high of 106.30 points on the last day and finally closed at 105.80 points against the previous closing of 105.53 points.