Stock prices of close to half of the companies that are part of the Sensex more than doubled in the first half of the financial year (April 1-September 30, 2009). All these companies outperformed the Sensex which gained 78% during the same period.
As per an ETIG study, 40% of the Sensex companies generated returns of 100% or more in the first half of the current fiscal. The top five performers among the Sensex pack include automotive giant Tata Motors (228%), diversified infrastructure firm Jaiprakash Associates (182%), country’s largest private sector bank ICICI Bank (172%), India’s largest real estate firm DLF (162%) and engineering and construction major Larsen & Toubro (150%).
Share price of other companies such as Tata Steel, Hindalco Industries, Wipro, Reliance Infrastructure, Mahindra & Mahindra, Maruti Suzuki and Sterlite Industries (India) also doubled during the same period.
Expectations of better corporate performance led to sharp uptick in stock market valuations since March. This triggered huge money inflow from foreign institutional investors (FII), besides domestic investors returning to the stock market.
Says Amitabh Chakraborty, president (equity) at Religare Capital, “The market is likely to remain volatile in the coming months due to events like announcement of credit policy and corporate results. Further, for the next year, consumption pattern in the US, which is going to become clear in December , is likely to define market trend for the next year.”
Amongst sectors, infrastructure, steel and automobiles have outperformed the Sensex. Although ICICI Bank was among the major gainers, overall banking and FMCG scrips underperformed in the market rally over the last six months.
Says Sarabjit Kour Nangra, VP-research, Angel Commodities, “The outperformance of the automobiles sector is due to better numbers posted by these companies in terms of sales. Moreover, increasing thrust on infrastructure, led to reasonable rally in the infrastructure space as well.” She added the stock market is unlikely to witness correction in the near term, but can see consolidation.
Showing posts with label mumbai stock exchange. Show all posts
Showing posts with label mumbai stock exchange. Show all posts
Tuesday, October 13, 2009
Saturday, June 6, 2009
Sensex, Nifty hit 10-month highs as bourses progress rapidly
MUMBAI: Indian bourses progressed rapidly with key indices -- Sensex and Nifty -- hitting nearly ten-month highs as investors were heartened by new UPA Government's economic agenda, unveiled by President Pratibha Patil in the week under review.
The markets achieved new highs in sustained volatility and the Sensex closed past the 15,000-psychological level for the first time since September 2, 2008.
Accentuated interest of investors in second-line stocks pushed up the Smallcap and Midcap indices by a whopping 7.88 per cent and 6.98 per cent, respectively, outperforming the bellwether Sensex.
In the week to June 6, the 30-stock BSE barometer ended the week at 15,103.55, a net rise of 478.30 points, or 3.27 per cent, over the week.
Investors were virtually confident that the economic reforms will get a strong push in the first year in the light of a political stability in the country.
Addressing Parliament on June 4, Patil disclosed that the Government would focus on revival in economy which has already showed signs of recovery with a good expansion in the manufacturing activity in May 2009.
Patil said the government will focus on reforms in financial and infrastructure sectors as also disinvestment of public sector undertakings while sticking to fiscal prudence.
India's infrastructure sector output grew 4.3 per cent in April, indicating a gradual economic recovery.
Inflation, too, remained low at 0.48 per cent for the week ended May 23.
The broader 50-share Nifty of the National Stock Exchange advanced by 137.95 points, or 3.10 per cent, to end the week at 4,586.90 from its previous weekend's close.
Foreign Institutional Investors, the principal market moving factor, remained consistent net buyers in equity. Hence, the capital inflows in equity stood at $427 million in the initial four days of the week
Analysts said the market is strongly bullish and may witness a pre-Budget rally. The full Budget is likely to be presented on July 3 by Finance Minister Pranab Mukherjee.
Sectorial indices such as the BSE Consumet Durables Index soared by about ten per cent and the BSE Capital Goods index by 8.40 per cent.
The trading volume for the week was high at Rs 1,30,005 crore on the NSE and Rs 45,288 crore on the BSE compared to Rs 1,11,845 crore and Rs 36,674 crore respectively.
The markets achieved new highs in sustained volatility and the Sensex closed past the 15,000-psychological level for the first time since September 2, 2008.
Accentuated interest of investors in second-line stocks pushed up the Smallcap and Midcap indices by a whopping 7.88 per cent and 6.98 per cent, respectively, outperforming the bellwether Sensex.
In the week to June 6, the 30-stock BSE barometer ended the week at 15,103.55, a net rise of 478.30 points, or 3.27 per cent, over the week.
Investors were virtually confident that the economic reforms will get a strong push in the first year in the light of a political stability in the country.
Addressing Parliament on June 4, Patil disclosed that the Government would focus on revival in economy which has already showed signs of recovery with a good expansion in the manufacturing activity in May 2009.
Patil said the government will focus on reforms in financial and infrastructure sectors as also disinvestment of public sector undertakings while sticking to fiscal prudence.
India's infrastructure sector output grew 4.3 per cent in April, indicating a gradual economic recovery.
Inflation, too, remained low at 0.48 per cent for the week ended May 23.
The broader 50-share Nifty of the National Stock Exchange advanced by 137.95 points, or 3.10 per cent, to end the week at 4,586.90 from its previous weekend's close.
Foreign Institutional Investors, the principal market moving factor, remained consistent net buyers in equity. Hence, the capital inflows in equity stood at $427 million in the initial four days of the week
Analysts said the market is strongly bullish and may witness a pre-Budget rally. The full Budget is likely to be presented on July 3 by Finance Minister Pranab Mukherjee.
Sectorial indices such as the BSE Consumet Durables Index soared by about ten per cent and the BSE Capital Goods index by 8.40 per cent.
The trading volume for the week was high at Rs 1,30,005 crore on the NSE and Rs 45,288 crore on the BSE compared to Rs 1,11,845 crore and Rs 36,674 crore respectively.
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