After lying low for the entire week, Indian stock market benchmarks surged on Friday to close over 3 per cent higher backed by host of positive cues from domestic and global markets.
Market opened with a gap-up reacting to drop in inflation to 12.40 per cent against expectation of 12.83 per cent, on moderation in prices of vegetables, meat, cement and a few non-administered petroleum products.
Directionless till Thursday, investors took this opportunity to build positions in recently beaten down banking and realty stocks as fears of Reserve Bank of India raising interest rates eased.
Market also got a lift from a rally in Asia and the US earlier on the back of a surprise 3.3 per cent first quarter GDP growth in US. Retreating oil prices as traders discounted threat of hurricane Gustav to US installations boosted sentiments further. However, oil climbed back up to $117 in Friday’s trade as threat from Gustav continued to loom.
Back home, data showed the Indian economy grew at 7.9 per cent in the April-June quarter against previous quarter's 8.8 per cent. The numbers were also disappointing compared with previous year’s 9.2 per cent growth.
This is the first time in last thirteen quarters that GDP growth has fallen below 8 per cent, but India is still expected to clock an annual growth of 8 per cent.
“Moderation will continue for at least for two more quarters (factoring the further tightening by RBI). However, we do not expect GDP to fall below 8 per cent in 2008-09. The consumption demand (both from consumer and government) is still strong which should support the manufacturing sector. Investment and savings are also satisfactory and is reflected in growth of construction sector in this quarter (11.4% against 7.7% a year ago),” said Krupresh Thakkar, research analyst, India Capital Markets.
“Growth in agriculture holds the key, as a good season would increase demand for other products from industrial and service sectors boosting the economy. The slight slowdown in service sector is an area of concern but we would like to watch the figures for one more quarter,” he added.
Bombay’s Stock Exchange’s Sensex closed at 14,564.53, up 516.19 points or 3.67 per cent. The 30-share index touched a high of 14,586.16 and low of 14,279.02.
National Stock Exchange’s Nifty ended at 4,360, up 3.46 per cent or 146 points. It touched a high of 4,368.80 and low of 4,230.60.
Hitendra Nayee, institutional-head, dealing, India Capital Markets, said, “domestic funds and foreign institutions both turned buyers. After months, we saw inflation climbing down and GDP numbers were also in line with expectations. The good thing is volumes were high, that shows interest returning back into the market. Now, the NSG meet will be keenly watched. We are expecting short-term uptrend in the market.”
However, second rung stocks were behind in the race as compared with heavyweights. BSE Midcap Index closed 2.38 per cent higher at 5,742.29 and BSE Smallcap Index gained 1.61 per cent to close at 6,891.64.
State Bank of India (7.19%), Reliance Infrastructure (5.97%), ICICI Bank (5.93%) Tata Motors (5.44%) and DLF (5.35%) were the major Sensex gainers. There were no losers in the index.
Shares of Tata Steel surged nearly 5 per cent after the company posted 60.5 per cent rise in April-June consolidated net profit late on Thursday. The company's shares ended up 4.99 per cent at Rs 600.35 with volume traded at 22,11,323 against two-week average of 14,78,472 shares. The steel maker is in talks to raise at least $1 billion from a stake sale to private equity firms or a private placement of shares, according to media reports.
Gammon Infrastructure Projects ended up 1.17 per cent at Rs 94.95 on BSE after it got an order for a bridge project worth Rs 8 billion.
Jai Corp ended up 5 per cent at Rs 324.30 on market talk that Mukesh Ambani's Reliance Industries may grant it a gas distribution contract.
On BSE , advances were 1,851 and declines 790.
According to NSE website, total turnover was Rs 10,626.94 crore (provisional), up from Rs 8,769 crore Wednesday—a prior to settlement day. Avdhoot Investment
Showing posts with label US. Show all posts
Showing posts with label US. Show all posts
Aug 19, 2008
US stocks fall on inflation data, financial worries
NEW YORK: Stocks fell sharply on Tuesday after a hefty jump in wholesale inflation and a drop in new home construction gave investors more reasons to believe the economy won't rebound anytime soon. The Dow Jones industrial average dropped by more than 100 points.
The Labor Department said its Producer Price Index rose by 1.2 percent in July, more than double the expected rate. The increase means prices have risen in the past 12 months at the fastest pace in 27 years.
The data also showed that core wholesale inflation, which excludes food and energy prices, rose 0.7 percent — the biggest increase since November 2006 and more than triple the 0.2 percent rise in core prices that had been expected.
"Maybe investors were hoping to shrug off the challenges of high commodity prices and inflation," said Jack A. Ablin, chief investment officer at Harris Private Bank. "But now we find out that perhaps the inflation situation is worse than we thought."
A weak report on new home construction did little to quell investors' worries. The Commerce Department said July housing starts fell to an annual rate of 965,000 units — higher than analysts predicted, but the lowest level in more than 17 years nonetheless.
Tuesday's pair of economic reports indicated not only that the financial sector is struggling to right itself after billions of dollars in credit losses, but also that the rest of the economy is still showing significant signs of stress.
The Labor Department said its Producer Price Index rose by 1.2 percent in July, more than double the expected rate. The increase means prices have risen in the past 12 months at the fastest pace in 27 years.
The data also showed that core wholesale inflation, which excludes food and energy prices, rose 0.7 percent — the biggest increase since November 2006 and more than triple the 0.2 percent rise in core prices that had been expected.
"Maybe investors were hoping to shrug off the challenges of high commodity prices and inflation," said Jack A. Ablin, chief investment officer at Harris Private Bank. "But now we find out that perhaps the inflation situation is worse than we thought."
A weak report on new home construction did little to quell investors' worries. The Commerce Department said July housing starts fell to an annual rate of 965,000 units — higher than analysts predicted, but the lowest level in more than 17 years nonetheless.
Tuesday's pair of economic reports indicated not only that the financial sector is struggling to right itself after billions of dollars in credit losses, but also that the rest of the economy is still showing significant signs of stress.
Aug 14, 2008
World's tallest woman dies in US
WASHINGTON: Sandy Allen, the tallest woman in the world according to the Guinness Book of World Records, died in the US state of Indiana.
The 2.31-metre tall woman died at the age of 53 at a nursing home in Shelbyville, Indiana, said a publication Wednesday.
Allen had been ill for a few months, a friend was quoted as saying in the Indianapolis Star.
The cause of death was not known, but she suffered from blood infections, respiratory problems and diabetes.
At age 10 she was already taller than 1.90 metres. A tumour that was removed in 1977 reportedly caused her unusual growth.
"She accepted the title of 'Tallest Woman' with pride, and became an international figure, appearing as Angelina the Giantess in the Oscar-winning Fellini movie Casanova, and was the subject of countless TV documentaries," said Guinness Book editor-in-chief Craig Glenday.
Glenday defined the woman as a "gentle giant" and recalled that Allen "often made her own clothes and wore hand-me-down sneakers donated by baseball stars."
The 2.31-metre tall woman died at the age of 53 at a nursing home in Shelbyville, Indiana, said a publication Wednesday.
Allen had been ill for a few months, a friend was quoted as saying in the Indianapolis Star.
The cause of death was not known, but she suffered from blood infections, respiratory problems and diabetes.
At age 10 she was already taller than 1.90 metres. A tumour that was removed in 1977 reportedly caused her unusual growth.
"She accepted the title of 'Tallest Woman' with pride, and became an international figure, appearing as Angelina the Giantess in the Oscar-winning Fellini movie Casanova, and was the subject of countless TV documentaries," said Guinness Book editor-in-chief Craig Glenday.
Glenday defined the woman as a "gentle giant" and recalled that Allen "often made her own clothes and wore hand-me-down sneakers donated by baseball stars."
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