Closing
Mumbai: The benchmark Sensex shot up over 281 points on the Bombay Stock Exchange on buying by funds in heavyweight stocks such as Reliance Industries and Bharti Airtel.
The Sensex gained 281.60 points to close at 16,845.83, a level never seen before. It touched an intra-day high of 16,869.64 and a low of 16,599.66 points.
Similarly, the wide-based National Stock Exchange index Nifty spurted by 94.65 points to 4,932.20, after rising to 4,941.15 and dipping to 4,837.15 points.
Buying activity picked up on reports of the Hong Kong index Hang Sang crossing the 26,000-point level for the first time.
Afternoon update
Mumbai:The stock markets continued to remain bullish in afternoon trade, with the Sensex less than 250 points shy of the 17,000 mark. At 1:37pm, the benchmark 30-share index of the Bombay Stock Exchange was trading 198 points up at 16,762.
The Nifty was 89 short of the 5,000 mark, trading 74 points up at 4,911.
Morning
Mumbai: The stock markets continued their record-breaking spree with the benchmark Sensex touching a new peak of 16,820.53 within a few minutes of trade on 24 September, up by a whopping 256 points on the back of firm global cues and a slew of positive news.
The Bombay Stock Exchange (BSE) 30-share barometer opened with a wide upside gap at 16,697.89 from last Friday’s close of 16,564.23 and rallied further to a new intra-trade life-time peak of 16,820.53.
However, profit-taking pared early gains and it was quoted at 16,656.34 at 1030 hrs.
Similarly, the broad-based S&P CNX Nifty of the National Stock Exchange (NSE) logged a new intra-day high of 4,913.35, a rise of 75.80 over previous close of 4,837.55. It was quoted at 4,861.90 at 1030 hrs.
Top heavyweight Reliance Industries (RIL) remained the most favourite of the investing fraternity on news that the company has struck oil in D4 block of Krishna Godavari (KG) basin.
Banking counters also remained in the limelight on expectations of interest rate cut by the central bank in near future.
Most of the Asian indices were firm today in morning deal due to firm trend on Wall Street last Friday. The Dow Jones Industrial Average and the Nasdaq Composite Index rose by 53.49 points and 16.93 points respectively.
Market also got support from hectic short-coverings by operators and retail investors ahead of the expiry of September contract on September 27.
Dealers anticipated high volatility in next few sessions ahead of the expiry of September 2007 futures and options (F&O) contracts on Thursday.
Foreign Institutional Investors (FIIs) continued their buying in select blue-chip counters and pumped nearly Rs762 crore (provisional) on September 21, while domestic institutional investors (DIIs) were net sellers of shares worth Rs277.68 crore on the same day. FIIs have injected a whopping $2 billion in the current month so far.
Sustained fall in the inflation, which stood at 3.32% for the week ended September 8, 2007 from 3.52% in the previous week, also partly aided the bullish trend.
Last week, the benchmark Sensex registered its biggest weekly gain of 960.43 points or 6.16%.
Tuesday, September 25, 2007
Sensex zooms to new peak, Nifty crosses 4,900
Monday, September 24, 2007
India, Singapore set to open up banking
The Reserve Bank of India (RBI) and the Monetary Authority of Singapore (MAS) are finally ready to open up the financial sector of their respective countries.
According to people intimately familiar with the development, both regulators are very close to reaching an “understanding”.
“It’s a sort of quid pro quo,” says one person, who didn’t want to be named. “MAS will offer the qualifying full bank (QFB) status to State Bank of India (SBI) and possibly to ICICI Bank as well. This will enable these two banks to raise retail deposits and open 25 centres in Singapore, including brick and mortar branches and ATMs. RBI, in turn, will allow DBS and other Singapore banks to open more branches.”
Greater presence: Singapore’s DBS Bank will be allowed to open more branches in India
Greater presence: Singapore’s DBS Bank will be allowed to open more branches in India
India’s central bank is also the banking regulator and MAS regulates the entire financial sector in Singapore, including capital markets .
MAS is asking for 15 branch licences for Singapore banks but RBI cannot offer so many at one go as, under World Trade Organization (WTO) norms, the Indian banking regulator is required to offer 12 new licences every year to all foreign banks. “RBI may offer six branch licences to DBS this year,” this same person said. According to him, a formal announcement will be made soon, certainly before the end of 2007.
“RBI and MAS are working closely to review the applications by banks to be set up or to expand in the respective jurisdiction. This will help enhance economic connectivity between India and Singapore. Once these details are settled, the appropriate announcements would be made,” an MAS spokesperson told Mint.
Since August 2005, when the Indo-Singapore Comprehensive Economic Cooperation Agreement (CECA) came into effect, trade between the two countries has increased significantly. Since the CECA came into being, two Indian banks—Bank of Baroda and Axis Bank—have been allowed to set up operations in Singapore. DBS, Singapore’s largest bank, too, has been granted one more branch licence in India, taking its network to two.
Under the CECA, both the governments have promised to open up the financial sector. Three Singapore banks are to be allowed to open 15 branches in India, while three Indian banks will be given the QFB status.
However, not a single Indian bank has yet got the QFB status as MAS has been insisting on “ratings” of Indian banks as a precondition to offer the status even though the treaty does not stipulate that.
MAS had taken an official stance that QFB licences could be given to those Indian banks that meet its “prudential requirements” and the CECA does not guarantee automatic entry. The insistence on prudential requirements is in conformity with the general principle under WTO and other free trade agreements (FTAs). Singapore has 10 FTAs in force.
Friday, September 21, 2007
[21/09/2007] Calls...
DLF (SELL) 754 (Target1) 749 ( Target 2) 741 (Sl) 779.9
RELIANCE COM (SELL) 569.5 (Target1) 563 ( Target 2) 559 (Sl) 576
SHREE RENUKA (SELL) 686 (Target1) 679 ( Target 2) 675.4 (Sl) 696
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Thursday, September 20, 2007
Sensex leads global rally with highest intra-day rise
Reserve’s decision on Tuesday to cut the federal interest rate by 50
basis points could result in an investment bubble in emerging markets,
the Sensex, the benchmark index of the Bombay Stock Exchange rose over 653 points to close at 16323, its highest ever.
broader 50-stock index of the National Stock Exchange also rose, by
over 186 points to end at an all-time high of 4,732, but it was the
Sensex that was the biggest gainer
across global markets. Among emerging market indices, the
representative index of the Shanghai Stock Exchange was the only one to
fall on Wednesday, by 0.5%. All other indices gained between 1% and 4%.
The Sensex gained 4.2%.
on all markets was the Fed’s decision. Some analysts had predicted a 50
basis points cut in interest rates, but there was always the chance
that the Fed would play safe and go for a 25 basis points reduction.
Tuesday, following the Federal Reserve’s decision, the Dow Jones
Industrial Average, the key US index, closed at 13,739, up 336 points
or 2.5%. On Wednesday, the Dow was up another 90 points or 0.65%, at
9.15pm India time.
percentage point cut in its interest rates on federal funds, the first
in four years, easing the borrowing cost for banks in US that are now
expected to cut their prime lending rate. This boosted the spirit of
global investors worried over tightened credit in the wake of the
subprime crisis in the US.
16,000 comes at a time when finance firm Merrill Lynch has warned that
the Fed’s action has increased the risk of an investment bubble in
emerging markets (EM). “It is essentially 1998 in reverse; the credit
problem is now in the US rather than EM. Liquidity to ease the US
credit problem will be redirected towards EM just as liquidity to ease
the Asia/Russia problem was redirected towards technology (stocks),”
the firm said in a trading note to its clients.
around the world remained cautious, said Suyash Choudhary, a fund
manager with Standard Chartered Asset Management in India. Worries
about the exact fallout of the Fed’s action may have something to do
with it.
pressure to intervene in the forex market to prevent the appreciation
of the rupee beyond its comfort zone, said Kaushal Sampat, chief
operating officer of Dun & Bradstreet in India. “The widened
interest rate differential between India and the US could result in a
further surge of capital inflows, leading to the appreciation of the
Indian currency. RBI could consider a cut in interest rates, given the
recent dip in the growth rate of industrial production and with the
inflation being at a 17-month low,” Sampat said.
policy represents a departure from the traditional approach of
responding to backward-looking data more than forward-looking data,
said Ritesh Jain, a debt fund manager with Principal PNB Asset
Management Co. Pvt. Ltd.
vice-president, research, Sharekhan Ltd, said he expects RBI to be
under greater pressure to cut interest rates. He added that sectors
such as banks, autos and metals that are cyclical and interest rate
sensitive, would perform well in the future.
sector was the biggest gainer on BSE. DLF Ltd, the real estate major,
was the top traded counter on BSE with shares worth Rs255.19 crore
changing hands. Reliance Industries Ltd (RIL) and ICICI Bank Ltd
recorded a turnover of about Rs226 crore each. The market
capitalization of RIL, the largest weighted stock in Sensex, crossed
Rs3 trillion for the first time.
and Reliance Energy, the two energy-related stocks in the Sensex,
gained significantly as crude oil prices topped a record $82
(Rs3,304.6) per barrel in Wednesday’s trade, with the Fed’s rate cut
heralding a possible recovery in the economy and higher demand for
energy.
gains, with Housing Development Finance Corp. Ltd and HDFC Bank Ltd, up
about 8% each, gaining the most.
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