Sensex ends Oct with loss
Sunday, 31 October 2010
MUMBAI, Oct 30 (Reuters): The benchmark index of the Bombay Stock Exchange (BSE) posted its first monthly decline in five months, but closed 0.5 per cent higher Friday, propped up by a late surge in ICICI Bank, which soared after posting better-than-expected quarterly earnings.
Investors await an eventful week - marked by US Federal Reserve's two-day meet ending Wednesday, the Reserve Bank of India's policy review Tuesday and Coal India's listing on bourses last Thursday - for directional cues.
Most economists in a poll last Thursday expected the central bank to raise rates by at least 25 basis points to rein in stubbornly high inflation in the fastgrowing economy. It would be the sixth increase since mid-March.
Top private lender ICICI Bank rose 6.5 per cent, its best single-day gain in more than 15 months, as it beat forecasts with a 19-per cent rise in quarterly net profit, helped by robust credit growth and fewer bad debts.
The stock rose as much as 7.7 per cent to Rs 1,174, its highest level since February 2008. The 30-share BSE index edged up 0.46 per cent or 91.30 points, to 20,032.34, with only nine of its components closing in the green.
"There is not much to read in this month's decline. There were just bouts of profit sales after the rally we saw in September," said Rakesh Rawal, head of private wealth management at broking firm Anand Rathi.
It declined 0.2 per cent this month, first monthly drop after May. The benchmark index had gained 11.7 per cent in September which was its best gain in 16 months. "It is not a panic situation or a sign of big worry," said Mr Rawal, adding he expected the Sensex to test a new record high by end-December.
The 30-share index is still up 14.7 per cent year to date, as foreign funds have invested $24.7 billion in Indian equities in the period. It is around 1,200 points away from its alltime high witnessed in January 2008.
Investors await an eventful week - marked by US Federal Reserve's two-day meet ending Wednesday, the Reserve Bank of India's policy review Tuesday and Coal India's listing on bourses last Thursday - for directional cues.
Most economists in a poll last Thursday expected the central bank to raise rates by at least 25 basis points to rein in stubbornly high inflation in the fastgrowing economy. It would be the sixth increase since mid-March.
Top private lender ICICI Bank rose 6.5 per cent, its best single-day gain in more than 15 months, as it beat forecasts with a 19-per cent rise in quarterly net profit, helped by robust credit growth and fewer bad debts.
The stock rose as much as 7.7 per cent to Rs 1,174, its highest level since February 2008. The 30-share BSE index edged up 0.46 per cent or 91.30 points, to 20,032.34, with only nine of its components closing in the green.
"There is not much to read in this month's decline. There were just bouts of profit sales after the rally we saw in September," said Rakesh Rawal, head of private wealth management at broking firm Anand Rathi.
It declined 0.2 per cent this month, first monthly drop after May. The benchmark index had gained 11.7 per cent in September which was its best gain in 16 months. "It is not a panic situation or a sign of big worry," said Mr Rawal, adding he expected the Sensex to test a new record high by end-December.
The 30-share index is still up 14.7 per cent year to date, as foreign funds have invested $24.7 billion in Indian equities in the period. It is around 1,200 points away from its alltime high witnessed in January 2008.