SlideShare une entreprise Scribd logo
1  sur  2
Télécharger pour lire hors ligne
Indian equities end green, recover from bear excesses
Mumbai | October 31, 2008 6:35:13 PM IST

Mumbai, Oct 31 (IANS) After the bear market excesses of the last few weeks, Indian equities
bounced back sharply Friday with a key equities index closing with a gain of 743.55 points or
8.22 percent - the biggest single-day gain in recent weeks.

Analysts said the bounce back was expected because after a bout of bear market excess as was
witnessed earlier this week with the key index going even below the 8,000 mark, some kind of
recovery was very much on the cards due to short covering.

Sentiment was also helped by the big upswing in the US markets a day earlier following the cut
in the key interest rate by the US Federal Reserve to 1 percent, the lowest in the modern era.

The last time the key interest rate was cut to 1 percent was in 2000 after the bursting of the dot
com bubble, analysts said, adding that the rate cut was anyway expected since the last couple of
weeks because the US Fed really had no other alternative.

Markets opened strong Friday with the benchmark 30-share sensitive index (Sensex) of the
Bombay Stock Exchange (BSE) up more than 300 points over its previous close and rallied
upward throughout the day to finish at 9,788.06, up 743.55 points or 8.22 percent from its
previous close at at 9,361.66 points.

The situation was no different at the National Stock Exchange (NSE) where its broader 50-share
S&P CNX Nifty index closed at 2885.60, up 188.55 points or 6.99 percent from its previous
close at 2697.05 points.

The BSE midcap index closed at 3,200.02, up 105.54 points or 3.41 percent from its previous
close at 3,094.48 points.

The BSE smallcap index finished at 3,765.11, up 90.50 points or 2.46 percent from its previous
close at 3,674.61 points.

None of the sectoral indices suffered losses and metal, oil and gas, bank and telecommunication,
media and technology stocks gained the most in that order.

Among the stocks that make up the Sensex only Ranbaxy Laboratories and Tata Consultancy
Services reported losses of 1.97 and 0.93 percent, respectively.
The top gainers were Mahindra and Mahindra up 23.09 percent, Housing Development Finance
Company, up 17.48 percent, Jaiprakash Associates, up 16.55 percent and ICICI Bank up 15.50
percent.

As many as 1,577 or 61.24 percent scrips advanced, 916 or 35.57 percent stocks declined and 82
or 3.18 percent remained unchanged.

Analysts were, however, cautious to point out that despite the upward rally, there is still little
depth in the market as investors continue to be jittery, especially now that the US Consumer
Confidence Index announced Thursday has hit an all-time low.

The global financial problems were now definitely creeping into the real economy and it will
take some time before investors really come to grips with the situation, they said.

“It is too premature to say there is a definite bullish trend in the market,” said Jagannadham
Thunuguntla, head of the capital markets arm of India’s fourth largest share brokerage firm, the
Delhi-based SMC Group.

“Just too much has happened in the last two months and investors are still shell-shocked and
trying to understand the state of the global economy,” Thunuguntla said.

He said although US markets surged Thursday, Asian markets have shed values Friday despite
an interest rate cut Friday by the Japanese central bank to a near zero level of 0.3 percent from
0.5 percent earlier.

When Indian equities markets opened Friday morning, both the Nikkei, key index of the Tokyo
Stock Exchange and the Hang Seng, key index of the Hong Kong Stock Exchange were down
about 2 percent each.

The Nikkei fell further during the day and closed 5.01 percent down while the Hang Seng was
currently 5.05 percent down.

“So you can’t say that the Indian markets are really following global cues,” Thunuguntla said,
adding “the Indian market bounce back was expected as there have been bear excesses and the
Sensex had even gone into 7,000 levels Monday.”

“Bear excesses are always followed by a sharp bounce back and there is certainly short covering
but it is far too early to say that bulls are back in business,” he said.

He also said that with the October series of futures and options ending Wednesday and a new
series beginning Friday, there could also be some position building, which could be helping the
bounce back.

Contenu connexe

Plus de Jagannadham Thunuguntla

Infra cos pay over $1 billion in finance, interest costs in H1 - 25.11.2013
Infra cos pay over $1 billion in finance, interest costs in H1 - 25.11.2013Infra cos pay over $1 billion in finance, interest costs in H1 - 25.11.2013
Infra cos pay over $1 billion in finance, interest costs in H1 - 25.11.2013Jagannadham Thunuguntla
 
Initial offers fail investors- 25.11.2013
Initial offers fail investors- 25.11.2013Initial offers fail investors- 25.11.2013
Initial offers fail investors- 25.11.2013Jagannadham Thunuguntla
 
Speculation over aid package sends sugar prices soaring - 21.11.2013
Speculation over aid package sends sugar prices soaring - 21.11.2013Speculation over aid package sends sugar prices soaring - 21.11.2013
Speculation over aid package sends sugar prices soaring - 21.11.2013Jagannadham Thunuguntla
 

Plus de Jagannadham Thunuguntla (20)

The hindu business line
The hindu business lineThe hindu business line
The hindu business line
 
The asian age
The asian ageThe asian age
The asian age
 
Economic times 28.03.14.
Economic times   28.03.14.Economic times   28.03.14.
Economic times 28.03.14.
 
Economic times 26.03.14.
Economic times   26.03.14.Economic times   26.03.14.
Economic times 26.03.14.
 
Economic times 25.03.14.
Economic times   25.03.14.Economic times   25.03.14.
Economic times 25.03.14.
 
Financial chronicle 03.02.2014
Financial chronicle   03.02.2014Financial chronicle   03.02.2014
Financial chronicle 03.02.2014
 
Business standards 03.02.2014
Business standards   03.02.2014Business standards   03.02.2014
Business standards 03.02.2014
 
Financial chronicle - 31.01.201
Financial chronicle - 31.01.201Financial chronicle - 31.01.201
Financial chronicle - 31.01.201
 
The financial express 07.01.14.
The financial express   07.01.14.The financial express   07.01.14.
The financial express 07.01.14.
 
The business standard 07.01.14.
The business standard   07.01.14.The business standard   07.01.14.
The business standard 07.01.14.
 
Financial chronicle 7.01.14.
Financial chronicle   7.01.14.Financial chronicle   7.01.14.
Financial chronicle 7.01.14.
 
Business Standard 24.12.13
Business Standard 24.12.13Business Standard 24.12.13
Business Standard 24.12.13
 
The Hindu business
The Hindu businessThe Hindu business
The Hindu business
 
Hindu 17.12.13
Hindu 17.12.13Hindu 17.12.13
Hindu 17.12.13
 
Hindu 17.12.2013
Hindu 17.12.2013Hindu 17.12.2013
Hindu 17.12.2013
 
Infra cos pay over $1 billion in finance, interest costs in H1 - 25.11.2013
Infra cos pay over $1 billion in finance, interest costs in H1 - 25.11.2013Infra cos pay over $1 billion in finance, interest costs in H1 - 25.11.2013
Infra cos pay over $1 billion in finance, interest costs in H1 - 25.11.2013
 
Initial offers fail investors- 25.11.2013
Initial offers fail investors- 25.11.2013Initial offers fail investors- 25.11.2013
Initial offers fail investors- 25.11.2013
 
Speculation over aid package sends sugar prices soaring - 21.11.2013
Speculation over aid package sends sugar prices soaring - 21.11.2013Speculation over aid package sends sugar prices soaring - 21.11.2013
Speculation over aid package sends sugar prices soaring - 21.11.2013
 
Rupee helps
Rupee helpsRupee helps
Rupee helps
 
Ril's core biz..
Ril's core biz..Ril's core biz..
Ril's core biz..
 

Dernier

Work and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB fundingWork and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB fundingHenry Tapper
 
Hungarys economy made by Robert Miklos
Hungarys economy   made by Robert MiklosHungarys economy   made by Robert Miklos
Hungarys economy made by Robert Miklosbeduinpower135
 
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGeckoRWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGeckoCoinGecko
 
CLMV-Outlook-March-2024-ENG-20240327.pdf
CLMV-Outlook-March-2024-ENG-20240327.pdfCLMV-Outlook-March-2024-ENG-20240327.pdf
CLMV-Outlook-March-2024-ENG-20240327.pdfSCBEICSCB
 
The unequal battle of inflation and the appropriate sustainable solution | Eu...
The unequal battle of inflation and the appropriate sustainable solution | Eu...The unequal battle of inflation and the appropriate sustainable solution | Eu...
The unequal battle of inflation and the appropriate sustainable solution | Eu...Antonis Zairis
 
India Economic Survey Complete for the year of 2022 to 2023
India Economic Survey Complete for the year of 2022 to 2023India Economic Survey Complete for the year of 2022 to 2023
India Economic Survey Complete for the year of 2022 to 2023SkillCircle
 
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.KumarJayaraman3
 
LIC PRIVATISATION its a bane or boon.pptx
LIC PRIVATISATION its a bane or boon.pptxLIC PRIVATISATION its a bane or boon.pptx
LIC PRIVATISATION its a bane or boon.pptxsonamyadav7097
 
Zakat and it’s Social Benefits - THE FORGOTTEN PILLAR OF ISLAM
Zakat and it’s Social Benefits - THE FORGOTTEN PILLAR OF ISLAMZakat and it’s Social Benefits - THE FORGOTTEN PILLAR OF ISLAM
Zakat and it’s Social Benefits - THE FORGOTTEN PILLAR OF ISLAMFaisal834049
 
Buy and Sell Urban Tots unlisted shares.pptx
Buy and Sell Urban Tots unlisted shares.pptxBuy and Sell Urban Tots unlisted shares.pptx
Buy and Sell Urban Tots unlisted shares.pptxPrecize Formely Leadoff
 
Monthly Market Risk Update: March 2024 [SlideShare]
Monthly Market Risk Update: March 2024 [SlideShare]Monthly Market Risk Update: March 2024 [SlideShare]
Monthly Market Risk Update: March 2024 [SlideShare]Commonwealth
 
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdfLundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdfAdnet Communications
 
Solution manual for Intermediate Accounting, 11th Edition by David Spiceland...
Solution manual for  Intermediate Accounting, 11th Edition by David Spiceland...Solution manual for  Intermediate Accounting, 11th Edition by David Spiceland...
Solution manual for Intermediate Accounting, 11th Edition by David Spiceland...mwangimwangi222
 
Introduction to Entrepreneurship and Characteristics of an Entrepreneur
Introduction to Entrepreneurship and Characteristics of an EntrepreneurIntroduction to Entrepreneurship and Characteristics of an Entrepreneur
Introduction to Entrepreneurship and Characteristics of an Entrepreneurabcisahunter
 
Stock Market Brief Deck for 3/22/2024.pdf
Stock Market Brief Deck for 3/22/2024.pdfStock Market Brief Deck for 3/22/2024.pdf
Stock Market Brief Deck for 3/22/2024.pdfMichael Silva
 
Taipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for TourismTaipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for TourismBrian Lin
 
What Key Factors Should Risk Officers Consider When Using Generative AI
What Key Factors Should Risk Officers Consider When Using Generative AIWhat Key Factors Should Risk Officers Consider When Using Generative AI
What Key Factors Should Risk Officers Consider When Using Generative AI360factors
 

Dernier (20)

Work and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB fundingWork and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB funding
 
Hungarys economy made by Robert Miklos
Hungarys economy   made by Robert MiklosHungarys economy   made by Robert Miklos
Hungarys economy made by Robert Miklos
 
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGeckoRWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
 
CLMV-Outlook-March-2024-ENG-20240327.pdf
CLMV-Outlook-March-2024-ENG-20240327.pdfCLMV-Outlook-March-2024-ENG-20240327.pdf
CLMV-Outlook-March-2024-ENG-20240327.pdf
 
Digital Financial Services Taxation in Africa
Digital Financial Services Taxation in AfricaDigital Financial Services Taxation in Africa
Digital Financial Services Taxation in Africa
 
The unequal battle of inflation and the appropriate sustainable solution | Eu...
The unequal battle of inflation and the appropriate sustainable solution | Eu...The unequal battle of inflation and the appropriate sustainable solution | Eu...
The unequal battle of inflation and the appropriate sustainable solution | Eu...
 
India Economic Survey Complete for the year of 2022 to 2023
India Economic Survey Complete for the year of 2022 to 2023India Economic Survey Complete for the year of 2022 to 2023
India Economic Survey Complete for the year of 2022 to 2023
 
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
 
New Monthly Enterprises Survey. Issue 21. (01.2024) Ukrainian Business in War...
New Monthly Enterprises Survey. Issue 21. (01.2024) Ukrainian Business in War...New Monthly Enterprises Survey. Issue 21. (01.2024) Ukrainian Business in War...
New Monthly Enterprises Survey. Issue 21. (01.2024) Ukrainian Business in War...
 
LIC PRIVATISATION its a bane or boon.pptx
LIC PRIVATISATION its a bane or boon.pptxLIC PRIVATISATION its a bane or boon.pptx
LIC PRIVATISATION its a bane or boon.pptx
 
Effects & Policies Of Bank Consolidation
Effects & Policies Of Bank ConsolidationEffects & Policies Of Bank Consolidation
Effects & Policies Of Bank Consolidation
 
Zakat and it’s Social Benefits - THE FORGOTTEN PILLAR OF ISLAM
Zakat and it’s Social Benefits - THE FORGOTTEN PILLAR OF ISLAMZakat and it’s Social Benefits - THE FORGOTTEN PILLAR OF ISLAM
Zakat and it’s Social Benefits - THE FORGOTTEN PILLAR OF ISLAM
 
Buy and Sell Urban Tots unlisted shares.pptx
Buy and Sell Urban Tots unlisted shares.pptxBuy and Sell Urban Tots unlisted shares.pptx
Buy and Sell Urban Tots unlisted shares.pptx
 
Monthly Market Risk Update: March 2024 [SlideShare]
Monthly Market Risk Update: March 2024 [SlideShare]Monthly Market Risk Update: March 2024 [SlideShare]
Monthly Market Risk Update: March 2024 [SlideShare]
 
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdfLundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
 
Solution manual for Intermediate Accounting, 11th Edition by David Spiceland...
Solution manual for  Intermediate Accounting, 11th Edition by David Spiceland...Solution manual for  Intermediate Accounting, 11th Edition by David Spiceland...
Solution manual for Intermediate Accounting, 11th Edition by David Spiceland...
 
Introduction to Entrepreneurship and Characteristics of an Entrepreneur
Introduction to Entrepreneurship and Characteristics of an EntrepreneurIntroduction to Entrepreneurship and Characteristics of an Entrepreneur
Introduction to Entrepreneurship and Characteristics of an Entrepreneur
 
Stock Market Brief Deck for 3/22/2024.pdf
Stock Market Brief Deck for 3/22/2024.pdfStock Market Brief Deck for 3/22/2024.pdf
Stock Market Brief Deck for 3/22/2024.pdf
 
Taipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for TourismTaipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
 
What Key Factors Should Risk Officers Consider When Using Generative AI
What Key Factors Should Risk Officers Consider When Using Generative AIWhat Key Factors Should Risk Officers Consider When Using Generative AI
What Key Factors Should Risk Officers Consider When Using Generative AI
 

Net India 123 Oct 31, 2008 Indian Equities End Green, Recover From Bear Excesses

  • 1. Indian equities end green, recover from bear excesses Mumbai | October 31, 2008 6:35:13 PM IST Mumbai, Oct 31 (IANS) After the bear market excesses of the last few weeks, Indian equities bounced back sharply Friday with a key equities index closing with a gain of 743.55 points or 8.22 percent - the biggest single-day gain in recent weeks. Analysts said the bounce back was expected because after a bout of bear market excess as was witnessed earlier this week with the key index going even below the 8,000 mark, some kind of recovery was very much on the cards due to short covering. Sentiment was also helped by the big upswing in the US markets a day earlier following the cut in the key interest rate by the US Federal Reserve to 1 percent, the lowest in the modern era. The last time the key interest rate was cut to 1 percent was in 2000 after the bursting of the dot com bubble, analysts said, adding that the rate cut was anyway expected since the last couple of weeks because the US Fed really had no other alternative. Markets opened strong Friday with the benchmark 30-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE) up more than 300 points over its previous close and rallied upward throughout the day to finish at 9,788.06, up 743.55 points or 8.22 percent from its previous close at at 9,361.66 points. The situation was no different at the National Stock Exchange (NSE) where its broader 50-share S&P CNX Nifty index closed at 2885.60, up 188.55 points or 6.99 percent from its previous close at 2697.05 points. The BSE midcap index closed at 3,200.02, up 105.54 points or 3.41 percent from its previous close at 3,094.48 points. The BSE smallcap index finished at 3,765.11, up 90.50 points or 2.46 percent from its previous close at 3,674.61 points. None of the sectoral indices suffered losses and metal, oil and gas, bank and telecommunication, media and technology stocks gained the most in that order. Among the stocks that make up the Sensex only Ranbaxy Laboratories and Tata Consultancy Services reported losses of 1.97 and 0.93 percent, respectively.
  • 2. The top gainers were Mahindra and Mahindra up 23.09 percent, Housing Development Finance Company, up 17.48 percent, Jaiprakash Associates, up 16.55 percent and ICICI Bank up 15.50 percent. As many as 1,577 or 61.24 percent scrips advanced, 916 or 35.57 percent stocks declined and 82 or 3.18 percent remained unchanged. Analysts were, however, cautious to point out that despite the upward rally, there is still little depth in the market as investors continue to be jittery, especially now that the US Consumer Confidence Index announced Thursday has hit an all-time low. The global financial problems were now definitely creeping into the real economy and it will take some time before investors really come to grips with the situation, they said. “It is too premature to say there is a definite bullish trend in the market,” said Jagannadham Thunuguntla, head of the capital markets arm of India’s fourth largest share brokerage firm, the Delhi-based SMC Group. “Just too much has happened in the last two months and investors are still shell-shocked and trying to understand the state of the global economy,” Thunuguntla said. He said although US markets surged Thursday, Asian markets have shed values Friday despite an interest rate cut Friday by the Japanese central bank to a near zero level of 0.3 percent from 0.5 percent earlier. When Indian equities markets opened Friday morning, both the Nikkei, key index of the Tokyo Stock Exchange and the Hang Seng, key index of the Hong Kong Stock Exchange were down about 2 percent each. The Nikkei fell further during the day and closed 5.01 percent down while the Hang Seng was currently 5.05 percent down. “So you can’t say that the Indian markets are really following global cues,” Thunuguntla said, adding “the Indian market bounce back was expected as there have been bear excesses and the Sensex had even gone into 7,000 levels Monday.” “Bear excesses are always followed by a sharp bounce back and there is certainly short covering but it is far too early to say that bulls are back in business,” he said. He also said that with the October series of futures and options ending Wednesday and a new series beginning Friday, there could also be some position building, which could be helping the bounce back.