Indian shares seen strengthening on earnings hopes
Monday, 3 September 2007
MUMBAI, Sept 2 (AFP): Indian share prices should keep firming next week on optimism about the next set of domestic quarterly corporate results and an easing of the US subprime credit crisis, dealers said Friday.
For the week to August 31, the Mumbai stock exchange's 30-share benchmark Sensex index rose 6.0 per cent or 893.73 points to 15,318.60 14,424.87.
The rise came on the back of a recovery in global equities, fuelled by hopes that the US credit crunch problems would improve.
The Indian market got a lift from a report Friday that the United States will launch a plan to nurse back to health the ailing housing sector which has sparked the global subprime turmoil.
The market was also cheered by surprise 9.30 per cent growth in the first quarter as industry and services expanded strongly, as well as by benign inflation data.
"The GDP numbers were strong in absolute terms, it was a good indicator for the market," said Naresh Garg, chief investment officer at Sahara Mutual fund.
The price data showed inflation slipped below four per cent for the first time in over 15 months to touch 3.94 per cent for the week ended August 18, down from 4.10 per cent the previous week, and well under central bank targets.
For the week to August 31, the Mumbai stock exchange's 30-share benchmark Sensex index rose 6.0 per cent or 893.73 points to 15,318.60 14,424.87.
The rise came on the back of a recovery in global equities, fuelled by hopes that the US credit crunch problems would improve.
The Indian market got a lift from a report Friday that the United States will launch a plan to nurse back to health the ailing housing sector which has sparked the global subprime turmoil.
The market was also cheered by surprise 9.30 per cent growth in the first quarter as industry and services expanded strongly, as well as by benign inflation data.
"The GDP numbers were strong in absolute terms, it was a good indicator for the market," said Naresh Garg, chief investment officer at Sahara Mutual fund.
The price data showed inflation slipped below four per cent for the first time in over 15 months to touch 3.94 per cent for the week ended August 18, down from 4.10 per cent the previous week, and well under central bank targets.