Weekly Wrap up: Sensex up 9.58%, highest in six years

Weekly Wrap up: Sensex up 9.58%, highest in six years

The Indian stock market is making all the right moves to register itself in the record books considering the rate at which its reaching new highs in a short period of time.In the last two three weeks BSE Sensex has created many record like, fastest 1,000 points rally in just 4 trading session; biggest intraday point fall on Wednesday last week; biggest gain for Sensex on Tuesday this week; and now biggest one weekly gain since Apr. 20, 2001.

Despite having witnessed a slump on Wednesday (October 17) last week, wherein the BSE Sensex and Nifty hit the lower circuit for the first time since last year, the market exhibited a commendable pick up. The bourses had hit the lower circuit on back of SEBI`s draft proposal on curbing the investment made through P-Notes. This week, the BSE Benchmark Index, Sensex after receiving more clarity on SEBI stand on FII inflows on October 25, posted its biggest one-week gain.

Sensex ended the week on Friday (Oct. 26, 2007) with a weekly gain of 1,683.59 points, or 9.58% at 19,243.17. On the other hand NSE closed up 487 points, or 9.33% at 5,702.30.

On Thursday, the SEBI went ahead with the proposal on P-Notes, which was made on October 16, and announced to disallow issuance of P -Notes with underlying as derivative. Further it announced that now the Pension funds, charities, endowments can invest in India by registering themselves. The Indian investors accepted the decision and pushed the market to touch its all time life high of 19,276.45 on very next day, once again reassuring that the Bulls have not gone for a nap rather they are in the race. For the coming week, the market has two major events that is the RBI Credit policy meeting and Federal Reserve meeting in USA, back to back on Tuesday and Wednesday respectively.

If every thing goes as expected worldwide then we could see a fresh new movement in the world markets, including the Indian stock market which is on a bull run.

A Recap:The BSE benchmark index, Sensex on Monday (Oct. 22, 2007) opened weak at 17,259.65 on account of negative global cues and the SEBI meeting. However in the later half of the day it recoverd smartly and touched an intraday high of 17,704.83. The BSE Sensex closed with a gain of 54.01 points, or 0.31%, at 17,613.99, while the broad-based NSE Nifty lost 31.3 points, or 0.60%, to close at 5,184.00.

On Tuesday (Oct. 23, 2007) Sensex, opened strong at 17,910.30 and traded like an unbridled horse throughout the day. The index gained around 900 points during the day, touching its biggest intraday high.The BSE Sensex closed with hefty a gain of 878.85 points, or 4.99%, at 18,492.84, while the broad-based NSE Nifty gained 289.7 points, or 5.59%, to close at 5,473.70.

On Wednesday (Oct. 24, 2007), just before the SEBI meet on the P-Notes issue, Sensex, opened strong at 18,727.90, however after an hour, the index lost its strength and fell into the negative terrain. The market finally closed on a flat note amidst volatility. The BSE Sensex closed up 20.07 points, or 0.11%, at 18,512.91, while the broad-based NSE Nifty gained 22.45 points, or 0.41%, to close at 5,496.15.

Finally the D-Day came on Thursday (Oct. 25, 2007), where SEBI`s meeting was eyeballed by practically all those who were going to be affected and also those who were not. Sensex opened at 18,519.23, followed by heavy volatility in the next few hours of trading. But just as it started showing a downward trend, the bulls pulled up the indices and intense buying activity was seen in the pivotal stocks. The BSE Sensex closed up 257.98 points, or 1.39%, at 18,770.89, while the broad-based NSE Nifty gained 72.8 points, or 1.32%, to close at 5,568.95After market hours the SEBI head M. Damodaran came out with its decision on P-Notes, disallowing issuance of P -Notes with underlying as derivative and other decisions, which indicated that the SEBI had decided to go ahead with its proposal, and thereby all moves to curb anonymous FII inflow will be stemmed with immediate effect.On last day of the week i.e.

Friday (Oct. 26, 2007) the 30-share benchmark index, Sensex opened on positive note at 18,823.66, despite the SEBI`s decision to go firm on FII inflow. The index proceeded to trade higher throughout the day and touched an all time high of 19,276.45 in the intraday trades.The BSE Sensex closed with a hefty gain of 472.28 points, or 2.52%, at 19,243.17, while the broad-based NSE Nifty gained 133.35 points, or 2.39%, to close at 5,702.30New Listing:Hyderabad-based Maytas Infra, a company engaged in infrastructure development, construction and project management, after listing on bourses on October 25, closed at a premium of 70.27% at Rs 630, a premium of Rs 260, compared with the issue price of Rs 370 a share, at the National Stock Exchange (NSE).

Results announced during the week:On a consolidated basis, Satyam Computer Services, a leading software company, posted 27.92% rise in profit after tax and minority interest as per Indian GAAP of Rs 4,090.90 million for the quarter ended Sep. 30, 2007 as compared with Rs 3,198.10 million for the quarter ended Sep. 30, 2006.Suzlon Energy on a consolidated basis posted a growth of 67.74% in net profit to Rs 3,947.00 million for the quarter ended September 2007 as compared with Rs 2,353.70 million for the corresponding quarter, last year.

Reliance Capital, an Anil Ambani Group company, announced a 20.42% rise in net profit after tax of Rs 2,012.80 million for the second quarter ended September 2007 as compared to Rs 1,671.50 million for the comparable quarter, last year. ABB, a leader in power and automation technologies, disclosed a steady rise in net profit for the quarter ended September 2007. During the quarter, the company experienced a 40.83% rise in profit to Rs 1,156.88 million from Rs 821.43 million in the quarter ended September 2006.

Larsen & Toubro (L&T), the heavy engineering giant posted a robust 72.95% increase in net profit to Rs 3,480.20 million for the quarter ended Sep. 30, 2007 as compared with Rs 2,012.20 million in the same quarter, last fiscal. ITC, the FMCG major, registered a 13.43% increase in net profit to Rs 7,708.70 million, for the quarter ended Sep. 30, 2007, as compared with Rs 6,796.00 million in the same quarter, a year ago.

Tata Steel, India`s largest private sector steel company reported a marginal rise in net profit for the quarter ended September 2007. During the quarter, the company experienced a 8.11% rise in profit to Rs 11,908.30 million from Rs 11,014.90 million in the quarter ended September 2006.Economy Watch:India`s wholesale price index (WPI) based Inflation remained unchanged at 3.07% for the week ended October 13, from the previous week. The headline inflation is at its 5-year low since October 2002.



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