Weekly wrap up: Sensex adds 1,044 points: Myiris.com

Weekly wrap up: Sensex adds 1,044 points

Indian stocks bounced back again in the week ended December 28 as the outcome of better outlook of US economy, higher oil & metal prices and heavy foreign inflows. The higher consumer spending last month in US, boosted confidence in US as well as global markets. The broad based rally in the market was led by the metal, consumer durables, realty, oil & gas, power, banking and IT stocks.

However on Friday, the Indian shares fell marginally, following the drops in Asian stocks after the former prime minister of Pakistan, Benazir Bhutto was assassinated and on growth concern of US and Japan, the world`s two largest economies. BSE Sensex, India`s benchmark 30 share index, added 1,044.38 points, or 5.45%, to 20,206.95 over the week ended December 28, while the broad based NSE Nifty advanced 313.2 points, or 5.43%, to 6,079.70 in the same period. The small and mid-cap shares managed to outperform over the benchmark index. The mid-cap index gained 6.08% while the small-cap index jumped 9.21% over the week.

BSE Metal index jumped 9.17%, while Consumer durable index gained 8.51%. Realty index rose 8.07%, Oil & gas index went up 7.81%, Power index climbed 6.68%, Bankex index gained 6.03% and IT index rose 5.36% over the week.



Overseas investors were net buyers in equities worth Rs 35.32 billion in the period of December 24 to December 27. As per the provisional figures, overseas investors bought net of Rs 6.54 billion worth equities on December 28. On the other hand, Indian mutual funds were net buyers in equities to the tune Rs 22.89 billion in the period of December 24 to December 27. Major Corporate Developments

> Shares of leading transformers maker, Transformers & Rectifiers (India) listed at 69.89% at the NSE on Friday. TRIL intends to set up a Greenfield manufacturing facility at Moraiya, near Ahmedabad, to manufacture transformers at a cost of Rs 666.80 million.

> The market regulator, SEBI cleared the way by rejecting objections to the initial public offering of Reliance Power, a subsidiary of Reliance Energy.

> Maruti Suzuki India, the Nation`s biggest passenger car maker, is considering price cut of its cheapest car to compete with Tata Motors proposed Rs 100,000 car. > Bharti Infratel, a wholly owned subsidiary of the India`s biggest telecom operator, Bharti Airtel, announced on Friday that leading international investors have agreed to invest USD 1 billion in Bharti Infratel. The international investors are Temasek Holdings, The Investment Corporation of Dubai, Goldman Sachs, Macquarie, AIF Capital, Citigroup & India Equity Partners, with Temasek Holdings being the largest investor.

> Rashtriya Chemicals & Fertilizers and GAIL India signed a MoU to set up coal gasification project at Talcher in Orissa.> The joint venture of Larsen and Toubro, the country`s largest engineering company, in Oman has bagged three contracts worth Rs 7,487 million.

> National Thermal Power Corporation (NTPC), India`s biggest thermal power generator, signed a loan agreement of Rs 10 billion along with a bond subscription agreement of Rs 10 billion with Life Insurance Corporation of India to finance capital expenditure for power generation projects, coal mining & LNG business and renovation & modernization activities.

> Suzlon Energy, Asia`s leading and world`s fifth largest wind power solutions provider, has received a major new order from ONGC, India`s leading oil and gas exploration and production (E&P) player for 51 MW of wind turbine capacity.

> The board of ONGC approved the second pipeline replacement project along with necessary modifications, at a cost of Rs 25.53 billion, to be implemented over a period of 3 years to strengthen the pipeline network for oil and gas transportation.InflationIndia`s annual rate of inflation stood at 3.45% for the week ended Dec. 15, 2007, as against 3.65% on the previous working day. The annual rate of inflation stood at 5.73% as on Dec. 16, 2006.

The week aheadMarket on Monday is likely to open negative on concerns over US economy. The US commerce department reported on Friday that new home sales plunged 9% in November over previous month. This was the worst sales growth since April 1995. However, energy shares are likely to gain over the next week on higher oil price outlook as there are concerns over supply situation in US and mounting tensions in Pakistan and Northern Iraq.

Technical View: Market to remain positive next weak
Brokers` Outlook: Market likely to open flat on Monday



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