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.
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.
Saturday, May 23, 2009
Sensex jumps 14.1% on week; best in 17 years
MUMBAI: The BSE Sensex rose 1.1 per cent on Friday and took gains for the week to 14.1 per cent, its most in 17 years, buoyed by hopes for pro-market reforms after the ruling coalition won general election last weekend.
Manmohan Singh was sworn in as the prime minister for a second term, along with his new cabinet and the outlook for the market would depend on how quickly they are able to push asset sales in state firms, ease rules for foreign investment and boost sagging growth.
Some analysts believe the market is overbought after it leapt more than 17 per cent at the start of the week following the unexpectedly easy election win. The BSE index has risen 73 per cent from a 2009 low in early March and has climbed for 11 weeks in a row in the longest winning streak in four years.
"Valuations have become high, but people are buying because they may be left out otherwise," D.D. Sharma, vice president at Anand Rathi Securities, said.
The BSE index ended up 150.61 points at 13,887.15, with gainers and losers evenly matched. Trading was choppy with the index falling 0.9 per cent at one stage.
Brokerages and investment houses polled by Reuters expected the benchmark to reach 15,750 by the end of December, gaining another 13 per cent.
"There are so many desperate buyers because nobody is betting on the market going down. You will see people buying at every dip from now," Sharma said.
Energy giant Reliance Industries, private-sector lender ICICI Bank and infrastructure firm Larsen & Toubro led the market higher after a lower start.
Reliance, which has the biggest weight in the main index, rose 3.1 per cent to 2,183.10 rupees, while private-sector lender ICICI gained 4.5 per cent to 702.80 rupees.
Larsen & Toubro climbed 4.7 per cent to 1,301.40 rupeesThe market has largely been powered by foreign funds, which have pumped about $5 billion into the market in the past two months, including more than $1 billion in this week.
Outsourcers Tata Consultancy and Wipro, which get most of their revenue from overseas, fell about 2 per cent as the rupee climbed past 47 to a dollar to its highest since December.
Asian shares eased after a drop on Wall Street overnight on fears the United States, with its increasing budget deficit and weakened economy could lose its AAA rating.
Japan's Nikkei dropped 0.4 per cent, while MSCI's measure of other Asian markets edged down 0.02 per cent.
European shares were higher after falling more than 2 per cent in the previous session. The FTSEurofirst 300 index of top European shares was up 0.4 per cent at 1117 GMT.
Tuesday, May 19, 2009
Investors reap Rs 10,000 cr every second in today's trade
MUMBAI: Turning stock market into a money- making machine, the investors added well in excess of Rs 10,000 crore in every second of trade today--a frenzy they must have wished continued beyond just a minute.
However, the hopes are still not dashed completely as Dalal Street is pinning on another spectacular performance tomorrow with an eye on 15,000-points milestone for Sensex, even if it does not match today's historic gain of 2,111 points.
During 60 seconds of trade today -- first for 30 seconds at the opening and then another 30 seconds after trade resumed at 1155 hours -- investors' wealth measured in terms of total market capitalisation of all the listed companies grew by about Rs 6,50,000 crore. This is the biggest ever gain in the history of stock market, not only in India, but possibly in the entire world.
This sharp surge, the best ever post-polls performance of stock market in India, comes in sharp contrast to a huge loss suffered after the last general elections in 2004.
Election results had been announced during trading hours on May 13, 2004 and Sensex had ended up 0.8 per cent after highly volatile trade, but lost over 300 points the next day. In following trading session on May 17, 2004 Sensex plunged 11.1 per cent, its biggest drop in 12 years.
The Sensex had lost over 894 points in the two days after the election results were out in May 2004.
Meanwhile, today the total investors' wealth, measured in terms of combined market-cap of all the listed companies, has increased by over Rs 6,56,477 crore in a minute -- in the first 30 seconds and then after resumption trading in the afternoon -- to Rs 44,63,420.97 crore.
The 30-share Bombay Stock Exchange Sensex zoomed 1,305.97 points at 13,479.39, hitting the upper circuit with seconds of opening of trade, following which trading was halted for two hours. After trading was resumed the Sensex soared 806 points at 14,284.21 following which trading was halted for the day.
Further, the 30 Sensex companies, which account for over 47 per cent of the total market-cap of all the companies, saw their combined market valuation rise by over Rs 3.16 lakh crore today.
However, the hopes are still not dashed completely as Dalal Street is pinning on another spectacular performance tomorrow with an eye on 15,000-points milestone for Sensex, even if it does not match today's historic gain of 2,111 points.
During 60 seconds of trade today -- first for 30 seconds at the opening and then another 30 seconds after trade resumed at 1155 hours -- investors' wealth measured in terms of total market capitalisation of all the listed companies grew by about Rs 6,50,000 crore. This is the biggest ever gain in the history of stock market, not only in India, but possibly in the entire world.
This sharp surge, the best ever post-polls performance of stock market in India, comes in sharp contrast to a huge loss suffered after the last general elections in 2004.
Election results had been announced during trading hours on May 13, 2004 and Sensex had ended up 0.8 per cent after highly volatile trade, but lost over 300 points the next day. In following trading session on May 17, 2004 Sensex plunged 11.1 per cent, its biggest drop in 12 years.
The Sensex had lost over 894 points in the two days after the election results were out in May 2004.
Meanwhile, today the total investors' wealth, measured in terms of combined market-cap of all the listed companies, has increased by over Rs 6,56,477 crore in a minute -- in the first 30 seconds and then after resumption trading in the afternoon -- to Rs 44,63,420.97 crore.
The 30-share Bombay Stock Exchange Sensex zoomed 1,305.97 points at 13,479.39, hitting the upper circuit with seconds of opening of trade, following which trading was halted for two hours. After trading was resumed the Sensex soared 806 points at 14,284.21 following which trading was halted for the day.
Further, the 30 Sensex companies, which account for over 47 per cent of the total market-cap of all the companies, saw their combined market valuation rise by over Rs 3.16 lakh crore today.
Sensex creates History; two upper circuits in one day
MUMBAI: Markets have stopped trading for the day as the benchmarks hit another upper circuit Monday as soon as the trade resumed after 2 hour
break. Investors are euphoric after the United Progressive Alliance emerged victorious in the 2009 general elections. ( Watch )
Bombay Stock Exchange’s Sensex was locked at 14272.62 up 2099.21 points or 17.24 per cent. National Stock Exchange’s Nifty was locked at 4308.05, up 636.40 points or 17.33 per cent. According to media reports turnover including cash and F&O was less than Rs 1000 crore.
Marketmen are upbeat given the fact that there will be no interference by the Left Parties and other regional parties in day-to-day functioning of the government and less number of allies will lead to a stable government which will run its course of five years.
BHEL (32.72%), Larsen & Toubro (29.53%), DLF (25.82%), ICICI Bank (25.30%) and HDFC (23.46%) were the top Sensex gainers.
Amongst the sectoral indices, BSE Realty Index was up 25.37 per cent, BSE Capital Goods Index gained 23.47 per cent, BSE Bankex moved 20.27 per cent higher and BSE Oil&gas Index advanced 19.57 per cent.
Market breadth was positinve on the BSE with 833 advances and 11 declines.
The new government which is likely to be sworn in by Friday is expected to come-out with full budget within 45 days of resuming office, according to media reports.
Reforms in the banking sector, divestment of public sector undertakings, infrastructure, retail sector and insurance sector is likely to top the priority list.
Sensex had opened 10.73 per cent or 1305.97 points higher at 13479.39 points to 12011.10. National Stock Exchange’s Nifty was locked at 4203.30, higher by 14.48 per cent or 531.65 points.
break. Investors are euphoric after the United Progressive Alliance emerged victorious in the 2009 general elections. ( Watch )
Bombay Stock Exchange’s Sensex was locked at 14272.62 up 2099.21 points or 17.24 per cent. National Stock Exchange’s Nifty was locked at 4308.05, up 636.40 points or 17.33 per cent. According to media reports turnover including cash and F&O was less than Rs 1000 crore.
Marketmen are upbeat given the fact that there will be no interference by the Left Parties and other regional parties in day-to-day functioning of the government and less number of allies will lead to a stable government which will run its course of five years.
BHEL (32.72%), Larsen & Toubro (29.53%), DLF (25.82%), ICICI Bank (25.30%) and HDFC (23.46%) were the top Sensex gainers.
Amongst the sectoral indices, BSE Realty Index was up 25.37 per cent, BSE Capital Goods Index gained 23.47 per cent, BSE Bankex moved 20.27 per cent higher and BSE Oil&gas Index advanced 19.57 per cent.
Market breadth was positinve on the BSE with 833 advances and 11 declines.
The new government which is likely to be sworn in by Friday is expected to come-out with full budget within 45 days of resuming office, according to media reports.
Reforms in the banking sector, divestment of public sector undertakings, infrastructure, retail sector and insurance sector is likely to top the priority list.
Sensex had opened 10.73 per cent or 1305.97 points higher at 13479.39 points to 12011.10. National Stock Exchange’s Nifty was locked at 4203.30, higher by 14.48 per cent or 531.65 points.
Tuesday, May 12, 2009
Toyota cuts annual production goal to 7-year low.
TOKYO: Toyota Motor Corp. said on Wednesday it will cut vehicle production 28 per cent this year to its lowest level in seven years.
The world's largest automaker, struggling as sales fall across the globe, says it aims to produce 6.68 million vehicles in 2009, down from 9.24 million in 2008. ``We expect the severe conditions to continue this year,'' said Toyota spokeswoman Ryoko Nishinohara. Toyota has already said it expects the current fiscal year through March 2010 to be its worst ever financially, forecasting a net loss of 550 billion yen ($5.7 billion). The carmaker has struggled to keep up with falling demand, especially in the U.S. and Europe. It has suspended production at factories, cut temporary workers in Japan and offered buyouts to American workers.
Toyota has not closed any factories and retains the capacity to make up to 10 million vehicles per year. But the annual production cut is the latest indicator of how quickly its fortunes have turned. Prior to the financial crisis and the global credit crunch, sales were soaring. The maker of popular cars such as the Camry and the Prius hybrid overtook GM last year as the world's largest automaker by annual sales.
In the fiscal year that ended in March 2008, it booked a record profit of 1.72 trillion yen. But sales suffered as the global economic slump set in, and a year later it had a net loss of 436.94 billion yen. Toyota has reacted by picking a member of the founding family, Akio Toyoda, to become its president and lead a turnaround. He will replace current president Katsuaki Watanabe in June. On Tuesday, Toyota said it would suspend several lines at an engine factory in Japan. The company said it will stop three of 11 production lines at Kamigo, its main engine factory in central Aichi prefecture, to adjust for its lower vehicle output. In late trade Wednesday, the company's shares were down 2.7 per cent at 3,640 yen in Tokyo, while the benchmark Nikkei 225 stock average was up 0.6 per cent.
The world's largest automaker, struggling as sales fall across the globe, says it aims to produce 6.68 million vehicles in 2009, down from 9.24 million in 2008. ``We expect the severe conditions to continue this year,'' said Toyota spokeswoman Ryoko Nishinohara. Toyota has already said it expects the current fiscal year through March 2010 to be its worst ever financially, forecasting a net loss of 550 billion yen ($5.7 billion). The carmaker has struggled to keep up with falling demand, especially in the U.S. and Europe. It has suspended production at factories, cut temporary workers in Japan and offered buyouts to American workers.
Toyota has not closed any factories and retains the capacity to make up to 10 million vehicles per year. But the annual production cut is the latest indicator of how quickly its fortunes have turned. Prior to the financial crisis and the global credit crunch, sales were soaring. The maker of popular cars such as the Camry and the Prius hybrid overtook GM last year as the world's largest automaker by annual sales.
In the fiscal year that ended in March 2008, it booked a record profit of 1.72 trillion yen. But sales suffered as the global economic slump set in, and a year later it had a net loss of 436.94 billion yen. Toyota has reacted by picking a member of the founding family, Akio Toyoda, to become its president and lead a turnaround. He will replace current president Katsuaki Watanabe in June. On Tuesday, Toyota said it would suspend several lines at an engine factory in Japan. The company said it will stop three of 11 production lines at Kamigo, its main engine factory in central Aichi prefecture, to adjust for its lower vehicle output. In late trade Wednesday, the company's shares were down 2.7 per cent at 3,640 yen in Tokyo, while the benchmark Nikkei 225 stock average was up 0.6 per cent.
Suzlon raises $47 mn from stake sale: Report
MUMBAI: The founders of Suzlon Energy Ltd raised $47 million by selling 30 million shares, or 2 percent stake, at Rs 77 each on Tuesday, two sources with knowledge of the deal said.
The deal was done within hours of opening on Tuesday evening, they said. Citigroup was the sole bookrunner for the deal. Shares in Suzlon, which the market values at around $2.5 billion, have risen 29.8 percent in 2009 compared to a 26 percent rise in the benchmark index. The stock had tumbled 83.9 percent in 2008, hit by quality woes, tight liquidity and a plunge in the broader market.
The deal was done within hours of opening on Tuesday evening, they said. Citigroup was the sole bookrunner for the deal. Shares in Suzlon, which the market values at around $2.5 billion, have risen 29.8 percent in 2009 compared to a 26 percent rise in the benchmark index. The stock had tumbled 83.9 percent in 2008, hit by quality woes, tight liquidity and a plunge in the broader market.
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