Sensex falls 171 points
Sunday, 23 August 2009
MUMBAI, Aug 22 (PTI): The benchmark Sensex fell 171 points during the week ended August 21 and seemed to be consolidating at the psychological 15K-level with alternate weeks of gains and losses.
The week resumed with the biggest single-day fall of 626.71 points or 4.07pc since July 6, 2009, a budget day, following decline in the US consumer confidence index that caused concerns over revival in the global economy.
Continued concerns over the spreading of deadly swine flu, below normal monsoon and steep fall in Chinese stocks also impacted negatively.
However, some recovery in the global markets after Monday's heavy sell-off helped the benchmark Sensex to rebound in later part of the week.
Heavy selling by foreign funds in last few days also put pressure on the market while some buying by domestic funds cushioned the fall to certain extent.
Finance minister Pranab Mukherjee said during the week that the government would take all the required steps to control droughts.
The Bombay Stock Exchange 30-share barometer resumed the week lower at 15,284.23 but fell later to a low of 14,684.45 before concluding the week at 15,240.83, a fall of 170.80 points or 1.11pc. Last week, it was ended up by 251.39 points or 1.66pc.
Another report adds: Positive cues from Chinese markets and institutional buying in blue chips helped Indian shares close higher for the second straight session Friday.
The Bombay Stock Exchange's Sensitive Index ended up 1.5pc at 15,240.83, after trading between 14,835.08 and 15,275.17. The 30-stock index lost 1.1pc this week, after gaining 1.7pc the previous week.
Chinese shares, which have influenced Indian markets over the past few sessions, ended up with the Shanghai Composite rising 1.7pc.
"The China factor kept investors at bay this week," said Sunil Pachisia, vice president at Pratibhuti Viniyog.
He added covering of short positions ahead of this month's derivatives expiry Thursday will likely keep the markets positive next week.
"The markets have become more and more trading-driven and less investment-driven," said Anita Gandhi, head of institutional business at Arihant Capital Markets. She expects the Sensex to trade in a 14,500-15,800 range next week.
On the National Stock Exchange, the 50-stock S&P CNX Nifty rose 1.7pc to close at 4,528.80.
Total traded volume on the Bombay Stock Exchange was 49.01 billion rupees, up from Thursday's 48.57 billion rupees. Gainers outnumbered decliners 1,711 to 958, while 102 stocks were unchanged.
Most of the Sensex stocks closed higher. Autos extended their gains from the previous session on hopes strong demand in the upcoming festival season may mitigate the impact of weak monsoons on demand from rural areas.
Motorcycle maker Hero Honda surged 4.8pc to 1,480.55 rupees to be the biggest per centage gainer, while tractor maker Mahindra & Mahindra climbed 3.6pc to 801.75 rupees.
Maruti Suzuki, the top Indian auto maker by sales, gained 1.6pc to 1,385.75 rupees, adding to Thursday's 4.9pc surge. Bargain buying helped the heavyweights which have underperformed recently.
ICICI Bank - the nation's largest private lender by assets - climbed 3.6pc to 745.65 rupees, and Reliance Industries - the most valued company - rose 1.6pc to 1,928.65 rupees.
State-run power equipment maker Bharat Heavy Electricals rose 2.1pc to 2,297.80 rupees, after it received an order worth 26.30 billion rupees from Monnet Power Co.
Bharti Airtel jumped 2.9pc to 411.50, rebounding from a 2.6pc fall over the past two sessions. Bharti Airtel Chairman and Managing Director Sunil Mittal told Dow Jones Newswires the extension of merger talks with South Africa's MTN Group signals a deal may be worked out.
In a note dated Aug. 20, UBS Investment Research reiterated its "buy" rating and 500 rupees price target on the Indian telecommunications company, which Thursday extended its exclusive merger talks with MTN to Sept. 30.
Cement maker ACC, up 2.4pc at 776.70 rupees, and Infosys Technologies, up 1.8pc at 2,028.50 rupees, were the other major gainers.
The week resumed with the biggest single-day fall of 626.71 points or 4.07pc since July 6, 2009, a budget day, following decline in the US consumer confidence index that caused concerns over revival in the global economy.
Continued concerns over the spreading of deadly swine flu, below normal monsoon and steep fall in Chinese stocks also impacted negatively.
However, some recovery in the global markets after Monday's heavy sell-off helped the benchmark Sensex to rebound in later part of the week.
Heavy selling by foreign funds in last few days also put pressure on the market while some buying by domestic funds cushioned the fall to certain extent.
Finance minister Pranab Mukherjee said during the week that the government would take all the required steps to control droughts.
The Bombay Stock Exchange 30-share barometer resumed the week lower at 15,284.23 but fell later to a low of 14,684.45 before concluding the week at 15,240.83, a fall of 170.80 points or 1.11pc. Last week, it was ended up by 251.39 points or 1.66pc.
Another report adds: Positive cues from Chinese markets and institutional buying in blue chips helped Indian shares close higher for the second straight session Friday.
The Bombay Stock Exchange's Sensitive Index ended up 1.5pc at 15,240.83, after trading between 14,835.08 and 15,275.17. The 30-stock index lost 1.1pc this week, after gaining 1.7pc the previous week.
Chinese shares, which have influenced Indian markets over the past few sessions, ended up with the Shanghai Composite rising 1.7pc.
"The China factor kept investors at bay this week," said Sunil Pachisia, vice president at Pratibhuti Viniyog.
He added covering of short positions ahead of this month's derivatives expiry Thursday will likely keep the markets positive next week.
"The markets have become more and more trading-driven and less investment-driven," said Anita Gandhi, head of institutional business at Arihant Capital Markets. She expects the Sensex to trade in a 14,500-15,800 range next week.
On the National Stock Exchange, the 50-stock S&P CNX Nifty rose 1.7pc to close at 4,528.80.
Total traded volume on the Bombay Stock Exchange was 49.01 billion rupees, up from Thursday's 48.57 billion rupees. Gainers outnumbered decliners 1,711 to 958, while 102 stocks were unchanged.
Most of the Sensex stocks closed higher. Autos extended their gains from the previous session on hopes strong demand in the upcoming festival season may mitigate the impact of weak monsoons on demand from rural areas.
Motorcycle maker Hero Honda surged 4.8pc to 1,480.55 rupees to be the biggest per centage gainer, while tractor maker Mahindra & Mahindra climbed 3.6pc to 801.75 rupees.
Maruti Suzuki, the top Indian auto maker by sales, gained 1.6pc to 1,385.75 rupees, adding to Thursday's 4.9pc surge. Bargain buying helped the heavyweights which have underperformed recently.
ICICI Bank - the nation's largest private lender by assets - climbed 3.6pc to 745.65 rupees, and Reliance Industries - the most valued company - rose 1.6pc to 1,928.65 rupees.
State-run power equipment maker Bharat Heavy Electricals rose 2.1pc to 2,297.80 rupees, after it received an order worth 26.30 billion rupees from Monnet Power Co.
Bharti Airtel jumped 2.9pc to 411.50, rebounding from a 2.6pc fall over the past two sessions. Bharti Airtel Chairman and Managing Director Sunil Mittal told Dow Jones Newswires the extension of merger talks with South Africa's MTN Group signals a deal may be worked out.
In a note dated Aug. 20, UBS Investment Research reiterated its "buy" rating and 500 rupees price target on the Indian telecommunications company, which Thursday extended its exclusive merger talks with MTN to Sept. 30.
Cement maker ACC, up 2.4pc at 776.70 rupees, and Infosys Technologies, up 1.8pc at 2,028.50 rupees, were the other major gainers.