Online BusinessWEEKLY UPDATE: Markets make a strong statement on positive cues
The markets were propelled this week by good economic data, the central government"s reforms agenda and strong global markets. The Sensex ended higher by 690.55 points or 4.27% at 16,848.83 and the Nifty closed at 4,998.95, up 202.80 points or 4.23%.
- FIIs net buyers Rs 647cr in F&O on Friday - Sensex gains most in 11 weeks, up 4.27% - Sensex ends up 153pts - Ranbaxy pares early gains, ends flat - Sensex ends up 148pts - Asian markets end flat
The IIP numbers for the month of September were strong. Factory production rose 9.1% during the month against 6% in the same period last year. Manufacturing output was up by 9.3% against 6.2% in the same month of the previous year and mining was up by 8.6% compared to 5.8% in the corresponding period.
While inaugurating the 25th India Economic Summit in New Delhi, Prime Minister Manmohan Singh stressed the need for more economic reforms, especially in the financial sector and welcomed investment through qualified institutional investors in Indian companies. He also expressed confidence that 7% growth would be achieved next year.
The finance ministry gave an in-principle approval for 20% disinvestment in Sail and okayed 5% stake sale in NTPC. In general, the government favours atleast 10% public holding in all profitable PSUs. This is likely tyo lead to a host of IPOs and FPOs, going ahead.
FIIs have net bought shares worth Rs 2,727 crore so and mutual funds bought Rs 700 crore so far this month.
On the other hand, exports declined 11.4 % in October from a year earlier. And food inflation in the last week of October inched higher to 13.68% due to the soaring vegetable prices. The prices of potato doubled and onions have become expensive by 42.58% during the one-year period ended October 31, 2009.
On the global front, the Dow Jones closed well above the 10k mark at 10,197. Other than Thursday"s weakness, the US markets had an uninterrupted run for 6 days.
Tata Motors was the top weekly gainer (adding 8.77% at Rs 619.50), followed by Reliance (up 8.17% at Rs 2,116.70), TCS (7.98% at Rs 670.20), ICICI Bank (up 7.15% at Rs 909.40) and Infosys (up 6.36% at Rs 2,358.80). Among the divestment candidates, NMDC ended the week higher by 29% at Rs 435, Sail closed nearly 10% up at Rs 182 and NTPC ended higher by over 2% at Rs 215.
Friday was choppy, albeit within a narrow range. The Sensex made good the previous day"s losses to end up 152.80 points and the Nifty hovered around the psychological 5000 mark before closing just below it.
The positive manufacturing data seems to have rubbed off on the steel and and auto sectors. Moreover, the auto sales in October crossed the 1-million mark on a surge in the sales of passenger cars and medium and heavy commercial vehicles.
Hero Honda (stronger by 3.99% at Rs 1,579) and Maruti (higher by 3.90% at Rs 1,479.80) were the leading gainers on the BSE. Tata Steel was up 1.84% at Rs 521.25 and Sail added 3.29% at Rs 182. ONGC jumped 3.10% to Rs 1,183.95 after the government hiked the administered gas prices by 31%.