Market recovers marginally after seven weeks of loss (Weekly review)

July 12th, 2008 - 3:55 pm ICT by IANS  

A file-photo of Sensex

Mumbai, July 12 (IANS) On the back of rising inflation, crude oil prices and the political turmoil on the domestic front, the Indian equities market ended the week with a minimal gain after registering losses for seven weeks in a row. Yet, out of five trading sessions, three ended in the negative.

Inflation based on the wholesale price index rose 11.89 percent in 12 months to June 28, above the previous week’s annual rise of 11.63 percent.

It was the highest in more than 13 years.

According to market regulator Securities Exchange Board of India (SEBI), the Indian equities market attracted foreign institutional investment of $410.20 million during the week.

The 30-share BSE sensitive index, Sensex, rose a marginal 15.85 points or 0.12 percent to 13,469.86 in the week ended Friday, July 11.

The broader-based S&P CNX Nifty edged up 33 points or 0.82 percent to 4,049 in the week.

The BSE Mid-Cap index added 87.10 points or 1.65 percent to 5,365.34. The BSE Small-Cap index rose 263.99 points or 4.09 percent to 6,713.66

“Markets will remain edgy over the week ahead until the government proves its majority on the floor of the House,” Ashok Jainani, head of research, Khandwala Securities said.

But he said the fact that the Sensex made a gain, however marginal, coupled with a reduction in FII selling and serious long-term investors, “augurs well for the market in the coming weeks”.

The Sensex rose 71.99 points or 0.54 percent to 13,525.99 Monday.

The market had remained firm most part of the day on strong global cues.

But it lost 176.34 points or 1.3 percent, dropping to 13,349.65 Tuesday. After an initial sharp fall following the decision of Left parties to withdraw support to the Congress-led United Progressive Alliance (UPA) government, the market recovered somewhat at close.

The Sensex surged 614.61 points or 4.6 percent to 13,964.26 Wednesday. The market was also boosted on hopes that the government may push through some of the economic reforms which the Left parties had stalled over the past four years.

The BSE index lost 38.02 points or 0.27 percent, dipping to 13,926.24 Thursday, with the market ending with only a little changed after witnessing a bout of volatility in the day.

The Sensex slumped 456.39 points or 3.28 percent to 13,469.85 Friday. Dismal economic data and rising crude oil prices forced investors to dump shares across the board.

Share prices of India’s second largest information technology exporter by sales Infosys slumped 4.5 percent to Rs.1,676.45 in the week.

India’s largest private sector firm by market capitalisation and oil refiner Reliance Industries fell 3.94 percent to Rs.2,016.40.

India’s second largest telecom services provider by sales Reliance Communications (RCom) fell 0.07 percent to Rs.437.90.

South African mobile phone operator MTN Group has agreed to extend its exclusive talks with RCom for a possible combination of their businesses, until July 21.

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