Markets this week
Indian bourses witnessed a strong rally on Tuesday, a day after Republic Day celebrations, and the Sensex surged by an impressive 330 points to close at 9004, while the broader Nifty registered a gain of 93 points to end strongly at 2771. The market breadth was positive and the rally was led by banking stocks such as SBI, ICICI Bank, HDFC Bank. Although FIIs continued to be the sellers, domestic institutions and mutual funds turned net buyers. The Reserve Bank of India, in its quarterly monetary policy review, on Tuesday left key rates unchanged and lowered the GDP growth rate projections to 7% from its earlier forecast of 7.5 % in view of recession in the USA and European countries. The new board of Satyam Computers has appointed Goldman Sachs and Avendus Capital as investment bankers and asserted that the company will not be sold in parts. It has further assured that the employees will get their January salary on schedule. One of the board members, Mr Manoharan, has stated that the board had no clue as to the motive behind L&T's bid to acquire Satyam, while asserting that the bid will be devised in a fair and transparent manner in consultation with SEBI and the Government. Following a strong global sentiment, the markets continued to rally on Wednesday as the Sensex closed the session with a gain of 253 points at 9257. Similarly, the Nifty opened on a positive note, rose 78 points to end positively at 2850. The share price of Satyam Computers on Wednesday surged by 17 per cent to Rs 55 on media reports that L&T might further enhance its stake. Apart from this, there was heavy short covering in this counter as Thursday would be the last day that Satyam shares will be traded in the F& O segment, said market participants. In a late evening development on Thursday, Mr B.K. Modi, Chairman, Spice Group informed that Spice Innovation is interested in acquiring 51 per cent stake in Satyam. Explaining the rationale behind the move, he said "they are also in the same line of business. our board had decided to look at Satyam even before the financial fraud came into light." The benchmark Sensex ended Thursday's session marginally lower by 21 points at 9236 after paring the initial gains. Similarly the Nifty faced resistance at higher levels and lost 25 points and closed at 2824. According to data from SEBI, FIIs have been net sellers of equity for $1.2 billion in the month of January. They have been net sellers since January 7. Apart from the worst fears over the gloabl economic recession, the Satyam episode had dampened FII sentment further, aver market players. The Sensex on Friday gained 188 points supported by positive global trends and buying by domestic funds in blue-chip stocks to close 9424.24. The Nifty index also rose by 51 points to end firmer at 2874.80. Compiled by S Vasudevan http://www.thehindubusinessline.com/2009/01/31/stories/2009013152040100.htm ekamber --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en -~----------~----~----~----~------~----~------~--~---
