Positive cues cheer market, propel it up 1.31 per cent

Mumbai, February 15:  Positive global cues and expectations of further reforms in the upcoming budget led a benchmark index of Indian equities markets to gain 377.02 points or 1.31 percent during the week ended on February 13. Easing concerns over Greece, after an agreement was reached with its euro zone counterparts to solve their current debt crisis and some of the large cap company’s good quarterly performance supported the markets in the week under review. “Few set of healthy numbers at the end of the result season when earnings where continuously been downgraded, has influenced the momentum,” said Vinod ir, head-fundamental research, Geojit BNP Paribas Fincial Services. “Fair CPI (Consumer Price Index) below the RBI (Reserve Bank of India) target and experts suggesting further correction in this trajectory is positive for the market. All this factors will help market to develop momentum by the budget expectation,” ir added. For the week ended Feb 13, the benchmark 30-scrip Sensitive Index (Sensex) of the S&P Bombay Stock Exchange (BSE) was up 377.02 points or 1.31 percent in the weekly trade.

The barometer index closed at 29,094.93 points, while it had ended trade at 28,717.91 points on February 6. In the weekly trade ended February 6, the benchmark Sensex was down 465.04 points or 1.59 percent. The index had closed at 28,717.91 points (February 6), while it had ended trade at 29,182.95 points (January 30). Other alysts predicted that going ahead, the pre-budget expectations will start building up and the corresponding sectors may see increased interest.

“We believe that, the budget will emphasise on the government’s favoured themes like ‘Make in India’, infrastructure growth, non-adversial taxation as well as other reforms. We also expect the FM (Fince Minister) to adhere to the fiscal consolidation path,” said Dipen Shah, head- private client group research, Kotak Securities. On the global front, European markets rose on the back of better German GDP (gross domestic product) data. The US index futures were also higher.

Market insiders point out that the next major trigger for the markets in the coming week will be data on WPI (Wholesale Price Index) based inflation which will be released on Monday.

On Friday, S&P BSE Sensex closed the day’s trade at 29,094.93 points, up 289.83 points or 1.01 percent from the previous day’s close at 28,805.10 points. Friday was the fourth consecutive session of gains for the barometer index. The benchmark index had gained 867 points in the last four trading sessions.

However, the markets had slumped by 491 points or 1.71 percent on Monday on the back of weak global cues that subdued investor sentiment. The major Sensex gainers on Friday were: State Bank of India (SBI), up 7.96 percent at Rs.307.05; Mahindra and Mahindra, up 5.11 percent at Rs.1,192; Tata Consultancy Services (TCS), up 3.08 percent at Rs.2,538.65; Coal India, up 2.37 percent at Rs.377.50; and Wipro, up 2.15 percent at Rs.660.35. The losers were: Gail, down 3.96 percent at Rs.406.25; BHEL, down 3.12 percent at Rs.259.55; ONGC, down 1.99 percent at Rs.339.90; HDFC Bank, down 1.09 percent at Rs.1,065.85; and Infosys, down 0.82 percent at Rs.2,296.40. (IANS)