Mixed fortune for markets after initial slide

February 16th, 2008 - 4:30 pm ICT by admin  

A file-photo of Sensex
(Market review)

Mumbai, Feb 16 (IANS) The Indian equities market had a mixed fortune this week, beginning with the dismal debut of the much-awaited listing of Reliance IPO coupled with weak global cues. However, the remarkable recovery in the last two trading sessions helped the market erase earlier losses. Of the five trading session three ended in green.

The BSE Sensex surged 650.36 points or 3.72 percent to 18,115.25 in the week ended Friday (Feb 15). S&P CNX Nifty rose 182.55 points or 3.56 percent to 5,302.90 in the week.

The BSE Mid-Cap index declined 41.19 points or 0.54 percent to 7,592.08 in the week. The BSE Small-Cap index slumped 299.22 points or 3.02 percent to 9,621.13.

Major gainers in the sectoral indices were: BSE realty jumped 7.29 percent, Bankex gained 7.13 percent, metal climbed 6.96 percent, oil and gas rose 5.92 percent and consumer goods went up 3.52 percent. Health care, fast moving consumer goods (FMCG), IT and power indices posted less than two percent gains.

Losers in the sectoral indices were: BSE consumer durable declined 0.64 percent and tech declined 0.30 percent over the week.

According to the Securities Exchange Board of India data, the Indian equity market attracted a FII investment of $ 865.80 million over the week.

In the beginning of the week, huge selling pressure was witnessed across the board as investors fretted over the dismal debut of Reliance Power with the Sensex falling 833.98 points or 4.78 percent at 16,630.91 on Monday (Feb 11). Weak global cues, too, weighed on the bourses.

Recovery in industrial production and positive global cues failed to offer solace to Indian investors after a sharp setback on Monday. On Tuesday, the Sensex fell by 22.90 points or 0.14 percent at 16,608.01. Banking and oil and gas stocks were in demand. However, IT stocks dropped. The broader market declined, as reflected in the weak market breadth.

On Wednesday, positive global cues and some hectic buying in large-caps assisted the Indian market breach its five-day losing streak. The Sensex rose 341.13 points or 2.05 percent at 16,949.14.

The market continued its gaining rally on Thursday, boosted by strong global markets and surged by 817.49 points or 4.82 percent at 17,766.63. Oil and gas stocks vaulted up on reports that the government has raised retail fuel prices to ease losses in state-run oil marketing firms.

Posting gains for the third successive session, the key benchmark indices settled on a firm note with the Sensex gaining 348.62 points or 1.96 percent to 18,115.25 on Friday. Major support to the market came in from the metal and oil sector stocks. Buying was witnessed in mid-caps and small-caps, as reflected in the strong market breadth.

The much-awaited Reliance Power debuted at Rs.547.80 at a premium of 21.73 percent at BSE and settled at Rs.372.50, a discount of 17.22 percent over the IPO price of Rs.450 on its debut on Feb 11.

India’s largest private sector entity by market capitalisation and oil refiner Reliance Industries rose 6.97 percent to Rs.2,590.55. The company said Thursday it had discovered natural gas reserves in an exploration block in the Krishna Godavari basin, Andhra Pradesh.

India’s biggest power equipment maker by sales Bharat Heavy Electricals rose 12.3 percent to Rs.2,261.35. As per reports, the company has taken an insurance policy worth $7 billion from National Insurance to cover all its projects. The company bagged an order worth Rs.2 billion from Oil & Natural Gas Corporation for supplying oil field equipment.

India’s third-largest software services exporter by sales Wipro slipped 0.52 percent to Rs.42.25. It has secured an IT outsourcing contract from Pantaloon Retail India.

India’s biggest power generation firm by revenue National Thermal Power Corporation gained 0.35 percent to Rs.204.

India’s top cellular services provider in terms of market share, Bharti Airtel, was flat at Rs.881.60. The company added 2.25 million mobile users in January 2008 as against 2.2 million in December 2007.

India’s largest commercial bank State Bank of India rose 4.86 percent to Rs.2,297.95. The bank said on Feb 11 it had cut its prime lending rate by 25 basis points to 12.5 percent with effect from Feb 16.

Cords Cable Industries debuted at Rs.130, a discount of 3.70 percent, and settled at Rs.138.30 - a premium of 2.44 percent over the IPO price of Rs.135 (lower end of price band of Rs.125-135) on its debut Wednesday (Feb 13).

J. Kumar Infraprojects debuted at Rs.100, a discount of 9.09 percent, and settled at Rs.102.70 - a discount of 6.64 percent over its IPO price of Rs.110 on its debut on Wednesday.

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