Weekly wrap-up: Sensex rises 510.32 ptsIndian equities regained its momentum in a volatile session during the last week, helped by the strong rally in the market on Friday, on the back of huge buying by foreign as well as domestic institutional investors after the US Federal Reserve chairman Ben S. Bernanke indicated that the Federal Reserve may reduce interest rates to boost economic growth.
The broad based rise in the market was led by the realty, metal, consumer durable, IT, banking and auto stocks. India`s benchmark 30 share index, BSE Sensex gained 510.32 points, or 2.71%, to 19,363.19 over the week ended November 30, while the broad based NSE Nifty climbed 154.15 points, or 2.75%, to 5,762.75 in the same period. The mid-cap index climbed 3.95% while the small-cap index gained 3.49% in the week. BSE Realty index jumped 8.62%, while Metal index surged 6.85%. Consumer durable index gained 5.18%, IT index climbed 4.49%, Bankex rose 4.38%, Auto index increased 4.05% and Oil & gas index went up 3.10% in the week ended November 30.
Overseas investors were net sellers in equities worth Rs 12.21 billion in the period of November 26 to November 29. As per the provisional figures overseas investors bought net of Rs 10.72 billion worth equities on November 30. On the other hand, Indian mutual funds were net buyers in equities to the tune Rs 8.41 billion in the period of November 26 to November 29.
Major Corporate Announcements / Developments
Software shares such as Tata Consultancy Services, Infosys Technologies, Satyam Computer, and Wipro climbed in the week on speculation that lower interest in US will strengthen demand for their services. Reliance Power, a subsidiary of Reliance Energy, received a letter of intent for 4,000 MW ultra mega power project (UMPP) based on imported-coal at Krishnapatnam, Andhra Pradesh.
Shares of Adani Group promoted Mundra Port and Special Economic Zone listed at a premium of Rs 330, or 75%, at Rs 770 as compared with the issue price of Rs 440 a share on November 27. It touched a high of Rs 1,150, a low of Rs 770. Shares finally closed with a premium of Rs 521.7, or 118.57%, at Rs 961.7. Total volume of shares traded was 14,721,792.India`s biggest lender, State Bank of India secured cabinet approval to raise maximum of Rs 167 billion by selling stock to existing shareholders, reports Bloomberg.
The Union Cabinet on November 30 approved to raise the capital of State Bank of India by subscribing to a rights issue of equity shares worth Rs 100 billion (USD 2.5 billion). The board of India`s biggest power transmission company, Power Grid Corporation of India approved investment proposals worth Rs 16.30 billion, which will be invested in strengthening transmission systems under various schemes. Oil PricesOil prices slipped to their lowest in more than a month on Friday, falling below USD 89 a barrel on heavy selling on signs of weakening demand and expectations that OPEC will increased production.
InflationIndia`s wholesale price index (WPI) based Inflation moved up 3.21% for the week ended November 17, as against 3.01% in the previous week. The annual rate of inflation stood at 5.56%, a year ago.
GDPIndia`s gross domestic product (GDP) grew at lowest rate in Q2 of fiscal 2007-08, since last 12 months. The economy expanded at a rate of 8.9% in Q2 of fiscal 2007-08 compared with 10.2% in the same quarter previous year. This was mainly due to weaker growth in manufacturing, trade, hotels, transport, communication, financing, real estates and business services.
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