BSE barometer gains 8.0pc in July
Sunday, 2 August 2009
MUMBAI, August 1 (PTI): Encouraging global picture and robust corporate earnings outlook for the fiscal year 2010, propelled Indian bourses aiding the Bombay Stock Exchange 30-share benchmark, Sensex, to hit a 13-month high of 15,670.31 amid end of quarterly earnings season.
The BSE barometer gained 1,176 points or 8.0pc in July quarterly earning season. The major trigger was the better-than-expected financial results by majority of companies.
Extending weekly gains to third straight week to 1 August, the BSE bellwether concluded at levels not seen since 17 June 2008, netting a rise of 291.35 points or 1.89pc over its last weekend's close.
Similarly, the National Stock Exchange broader 50-share Nifty jumped 67.90 points or 1.49pc to end the week at 4,636.45 from its previous weekend's close.
Even as the market was influence by a flow of encouraging corporate earnings, the Reserve Bank of India's quarterly monetary policy review announced on 28 July also impacted the market.
The RBI left the key rates unchanged and increased the inflation forecast to 5pc in this fiscal. It also raised the growth projections at 6.0pc in 2009-10.
Meantime, finance minister Pranab Mukherjee on the same day announced tax breaks, mainly beneficial to infrastructure sector in a bid to stimulate the economy.
FII activity during the month too was encouraging with a total capital inflow of over Rs11,000 crore in July. Analysts also are optimistic about corporate earnings in the current fiscal year.
However, the monsoon remained a main cause of concern as the total rainfall since the beginning of June was below average according to the Meteorological Department.
During the week, the trading volume on the BSE was almost steady at Rs33,007 crore against last week's turnover of Rs34,005 crore but it crossed 1 lakh mark on the NSE to Rs1,07,707 crore from Rs99,330 crore in the previous week.
The midcap and smallcap indices again outperformed the Sensex with a rise of 3.52pc and 2.57pc over the week.
The BSE FMCG Index was the week's top gainer with a jump of 6.14pc followed by the BSE IT Index (4.85pc) and BSE Realty Index (3.12pc).
The domestic bourses were well supported by global markets, which hit a multi-month high on revival in economy across the world as well as encouraging corporate earnings.
Among the major gainers, Tata Motors soared by 12.86pc, Tata Power by 11.02pc, TCS Ltd by 9.25pc, ITC by 7.97pc, SBI and Wipro by 6.80pc each and Tata Steel by 5.18pc.
Meanwhile: Technical analyst Abhishek Jain of Stocksidea.com has suggested investors to buy Reliance Communications Ltd for short term.
According to Mr. Jain, the stock may face some resistance around Rs 342 levels, but after that it can even have more upward movement.
Shares of the bank, on Friday (July 31), closed at Rs 275.65 on the Bombay Stock Exchange (BSE). The total volume of shares traded was 2,110,062 at the BSE. The stock hit an intraday high of Rs 288.95 and a low of Rs 272.50on BSE.
The share price has seen a 52-week high of Rs 508.70 and a low of Rs 131.35 on BSE. Current EPS and P/E of the stock stood at 11.40 & 24.18 respectively.
Mr. Abhishek stated that the stock is looking strong technically. Interested investors can buy the stock for short term.
Reliance Communications, part of Anil Dhirubhai Ambani Group, declared the results for the three month period ended June 30, 2009.
The company posted a growth of 8.3pc in its net profit at Rs 16,370 million as compared to a net profit of Rs 15,120 million for the same quarter of the last year.
For the period under review, the company's total revenues stood at Rs 61,450 million, a fall of 15.50pc over the prior year period.
While commenting on the quarterly results, Anil Ambani, Chairman, RCom stated that the successful commercial launch of countrywide GSM services and other new plans across all the business helped the company to record good growth during the quarter.
RCom, on July 22, entered into a deal with Etisalat DB for offering up infrastructure solutions comprising tower and transmissions.
The back-to-back contract, which is aimed at accelerating Etisalat DB's approaching launch of telecommunication services in the country, is for more than Rs 100 billion for a period of 10 years.
The BSE barometer gained 1,176 points or 8.0pc in July quarterly earning season. The major trigger was the better-than-expected financial results by majority of companies.
Extending weekly gains to third straight week to 1 August, the BSE bellwether concluded at levels not seen since 17 June 2008, netting a rise of 291.35 points or 1.89pc over its last weekend's close.
Similarly, the National Stock Exchange broader 50-share Nifty jumped 67.90 points or 1.49pc to end the week at 4,636.45 from its previous weekend's close.
Even as the market was influence by a flow of encouraging corporate earnings, the Reserve Bank of India's quarterly monetary policy review announced on 28 July also impacted the market.
The RBI left the key rates unchanged and increased the inflation forecast to 5pc in this fiscal. It also raised the growth projections at 6.0pc in 2009-10.
Meantime, finance minister Pranab Mukherjee on the same day announced tax breaks, mainly beneficial to infrastructure sector in a bid to stimulate the economy.
FII activity during the month too was encouraging with a total capital inflow of over Rs11,000 crore in July. Analysts also are optimistic about corporate earnings in the current fiscal year.
However, the monsoon remained a main cause of concern as the total rainfall since the beginning of June was below average according to the Meteorological Department.
During the week, the trading volume on the BSE was almost steady at Rs33,007 crore against last week's turnover of Rs34,005 crore but it crossed 1 lakh mark on the NSE to Rs1,07,707 crore from Rs99,330 crore in the previous week.
The midcap and smallcap indices again outperformed the Sensex with a rise of 3.52pc and 2.57pc over the week.
The BSE FMCG Index was the week's top gainer with a jump of 6.14pc followed by the BSE IT Index (4.85pc) and BSE Realty Index (3.12pc).
The domestic bourses were well supported by global markets, which hit a multi-month high on revival in economy across the world as well as encouraging corporate earnings.
Among the major gainers, Tata Motors soared by 12.86pc, Tata Power by 11.02pc, TCS Ltd by 9.25pc, ITC by 7.97pc, SBI and Wipro by 6.80pc each and Tata Steel by 5.18pc.
Meanwhile: Technical analyst Abhishek Jain of Stocksidea.com has suggested investors to buy Reliance Communications Ltd for short term.
According to Mr. Jain, the stock may face some resistance around Rs 342 levels, but after that it can even have more upward movement.
Shares of the bank, on Friday (July 31), closed at Rs 275.65 on the Bombay Stock Exchange (BSE). The total volume of shares traded was 2,110,062 at the BSE. The stock hit an intraday high of Rs 288.95 and a low of Rs 272.50on BSE.
The share price has seen a 52-week high of Rs 508.70 and a low of Rs 131.35 on BSE. Current EPS and P/E of the stock stood at 11.40 & 24.18 respectively.
Mr. Abhishek stated that the stock is looking strong technically. Interested investors can buy the stock for short term.
Reliance Communications, part of Anil Dhirubhai Ambani Group, declared the results for the three month period ended June 30, 2009.
The company posted a growth of 8.3pc in its net profit at Rs 16,370 million as compared to a net profit of Rs 15,120 million for the same quarter of the last year.
For the period under review, the company's total revenues stood at Rs 61,450 million, a fall of 15.50pc over the prior year period.
While commenting on the quarterly results, Anil Ambani, Chairman, RCom stated that the successful commercial launch of countrywide GSM services and other new plans across all the business helped the company to record good growth during the quarter.
RCom, on July 22, entered into a deal with Etisalat DB for offering up infrastructure solutions comprising tower and transmissions.
The back-to-back contract, which is aimed at accelerating Etisalat DB's approaching launch of telecommunication services in the country, is for more than Rs 100 billion for a period of 10 years.