Battered Indian equities markets end week in green (Weekly Roundup)November 1st, 2008 - 3:03 pm ICT by IANS
Mumbai, Nov 1 (IANS) With Indian equities markets worshipping Lakshmi, the goddess of wealth, during Diwali this week, some wealth returned to the battered markets with a key share index ending with a gain of 12.5 percent after losing more than 35 percent in the first three weeks of October.The benchmark 30-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE) ended the week Friday at 9,788.06, up 1,086.99 points or 12.5 percent from its close the previous Friday at 8,701.07.
Similarly, the broader-based 50-share S&P CNX Nifty index of the National Stock Exchange (NSE) finished the week Friday at 2,885.60 points, up 301.6 points or 11.7 percent from its close Friday previous week at 2,584.00.
The BSE midcap ended Friday this week at 3,200.02 points, up 104.34 points or 3.4 percent from its close Friday previous week at 3,095.68 points.
The BSE smallcap ended Friday this week at 3,765.11 points, up 103.28 points or 2.8 percent from its close Friday previous week at 3,661.83 points.
The week, however, began disastrously with the Sensex hitting a three-year low in intra-day trading Monday falling even below the 8,000 mark to 7,985.07 points before recovering somewhat to end the day at 8,509 points, down 191.51 points or 2.2 percent from its close previous Friday at 8,701.07 points.
At the NSE, the broader-based 50-share S&P CNX Nifty closed Monday at 2,524.2 points, down 59.8 points or 2.31 percent from its close Friday previous week at 2,584.00 points.
Tuesday happened to be Diwali and with brokers worshipping Lakshmi at the BSE, cheer returned to the markets and the Sensex made a sharp U-turn to regain the psychologically important 9,000 mark after falling freely for the past few trading sessions.
In special ‘muhurat’ trading Tuesday, marking the beginning of the Hindu Samvat calendar year 2065, the 30-share Sensitive Index (Sensex) of the Bombay Stock exchange closed at 9,008.08 points, up 498.52 points or 5.86 percent.
The Nifty too ended 160.4 points or 6.3 percent higher at 2,684.6 points from its previous close Monday at 2,524.2 points.
Wednesday too saw the Sensex finish a tad higher at 9,044.51 points to post a marginal gain of 36.43 points, or 0.40 percent, over Tuesday’s close.
At the National Stock Exchange (NSE), the broader S&P CNX Nifty ended Wednesday at 2,712.50 points, up 27.90 points or 1.04 percent from its previous close Tuesday at 2,684.6 points.
There was no trading Thursday as markets were closed on account of Hindu festival Bhai Duj.
After the bear market excesses of the last few weeks, Friday saw Indian equities markets really bounce back with the Sensex closing with a gain of 743.55 points or 8.22 percent - the biggest single-day gain in recent weeks.
Markets opened strong Friday with the Sensex up more than 300 points over its previous close and rallied upward throughout the day to finish at 9,788.06, up 743.55 points or 8.22 percent from its previous close Wednesday at 9,044.51 points.
Analysts were, however, cautious to point out that despite the upward rally, there is still little depth in the market as investors continue to be jittery, especially now that the US has reported a contraction of its economy in the third quarter raising fears of a recession in the world’s largest economy.
The US Consumer Confidence Index announced Thursday was also at an all-time low and with the US being a consumption-driven economy, analysts said a recession in the US economy is now a near certainty.
“It is too premature to say there is a definite bullish trend in the market,” said Jagannadham Thunuguntla, head of the capital markets arm of India’s fourth largest share brokerage firm, the Delhi-based SMC Group.
“Just too much has happened in the last two months and investors are still shell-shocked and trying to understand the state of the global economy,” Thunuguntla said.
He, however, pointed out that bear market excesses are always followed by a sharp bounce-back and since the Indian equities markets have been in a 10-month long bear grip eroding share values by more than 50 percent since markets peaked in Jan this year, some recovery is only to be expected.