Sensex posts its best weekly gain in 12 weeks
Sunday, 30 May 2010
MUMBAI, May 29 (Reuters): The BSE Sensex posted its biggest weekly gain since early March, as it climbed 1.2 per cent Friday, joining a global markets rally triggered by bargain hunting after China's assurance that Europe will remain a major investment market.
Metal makers Tata Steel, Hindalco and Sterlite Industries gained the most driven by firm metal prices in London as copper prices touched a two-week high. The 30-share BSE index rose 1.18 per cent, or 196.66 points, to 16,863.06 points.
It rose 2.5 per cent this week, the most since the week ended March 6, when it registered a 3.6 per cent gain. Twenty six components of the index closed in the green. But the benchmark is down nearly 4 per cent in May and is set to post its first monthly loss since January, as foreign funds pulled out $2.3 billion from Indian equities this month.
"The bad news was overdone. The Europe debt woes are more than factored in," said Neeraj Dewan, director of Quantum Securities, ruling out any steep downside from current levels.
Foreign funds are still net investors of $4.3 billion since January, after record inflows of $17.5 billion in 2009 that led to a spectacular 81 per cent rally in the benchmark last year. The BSE Sensex has fared better than its peers such as China's Shanghai Composite Index which dipped 7.5 per cent in May and Brazil's Bovespa stock index which shed 8.1 per cent. "Monsoon is a key factor to watch now. A lot depends on that," said Quantum Securities' Neeraj Dewan. Investors are keenly awaiting the June-September monsoon, which is vital for farm output, rural incomes and is a key driver of demand for a wide range of manufactured goods.
The annual monsoon, halted by cyclone Laila last week, is likely to hit the country's southern coast on schedule in the next three to four days, weather officials said Thursday. Last year, India suffered its worst drought since 1972, despite a forecast for a normal monsoon. Tata Motors rose as much as 4.2 per cent after the top vehicle maker beat market estimates with a surge in March quarter earnings, helped by rising sales and profitability at its Jaguar Land Rover unit.
But the stock erased early gains and closed 0.7 per cent higher. Non-ferrous metals producer Sterlite and aluminium maker Hindalco rose 5.8 per cent and 1.6 per cent, respectively. Tata Steel climbed 0.6 per cent while Jindal Steel & Power gained 4.9 per cent.
Late Thursday, Tata Steel said its founder Tata Sons is hiking its stake in the steel maker and the company had approved issuing up to 15 million shares and 12 million convertible warrants.
The 50-share NSE index Nifty gained 1.3 per cent to 5,066.55. Global equities measured by the MSCI All-Country World Index advanced 0.9 per cent, gaining for the third consecutive day.
Metal makers Tata Steel, Hindalco and Sterlite Industries gained the most driven by firm metal prices in London as copper prices touched a two-week high. The 30-share BSE index rose 1.18 per cent, or 196.66 points, to 16,863.06 points.
It rose 2.5 per cent this week, the most since the week ended March 6, when it registered a 3.6 per cent gain. Twenty six components of the index closed in the green. But the benchmark is down nearly 4 per cent in May and is set to post its first monthly loss since January, as foreign funds pulled out $2.3 billion from Indian equities this month.
"The bad news was overdone. The Europe debt woes are more than factored in," said Neeraj Dewan, director of Quantum Securities, ruling out any steep downside from current levels.
Foreign funds are still net investors of $4.3 billion since January, after record inflows of $17.5 billion in 2009 that led to a spectacular 81 per cent rally in the benchmark last year. The BSE Sensex has fared better than its peers such as China's Shanghai Composite Index which dipped 7.5 per cent in May and Brazil's Bovespa stock index which shed 8.1 per cent. "Monsoon is a key factor to watch now. A lot depends on that," said Quantum Securities' Neeraj Dewan. Investors are keenly awaiting the June-September monsoon, which is vital for farm output, rural incomes and is a key driver of demand for a wide range of manufactured goods.
The annual monsoon, halted by cyclone Laila last week, is likely to hit the country's southern coast on schedule in the next three to four days, weather officials said Thursday. Last year, India suffered its worst drought since 1972, despite a forecast for a normal monsoon. Tata Motors rose as much as 4.2 per cent after the top vehicle maker beat market estimates with a surge in March quarter earnings, helped by rising sales and profitability at its Jaguar Land Rover unit.
But the stock erased early gains and closed 0.7 per cent higher. Non-ferrous metals producer Sterlite and aluminium maker Hindalco rose 5.8 per cent and 1.6 per cent, respectively. Tata Steel climbed 0.6 per cent while Jindal Steel & Power gained 4.9 per cent.
Late Thursday, Tata Steel said its founder Tata Sons is hiking its stake in the steel maker and the company had approved issuing up to 15 million shares and 12 million convertible warrants.
The 50-share NSE index Nifty gained 1.3 per cent to 5,066.55. Global equities measured by the MSCI All-Country World Index advanced 0.9 per cent, gaining for the third consecutive day.