News Column

Sensex up; global cues in focus

August 31, 2014



"Markets have been medium to positive [last] week while making gains. Midcap stocks have performed better. Major trigger for the coming week will be the GDP data that [came] out on Friday [August 29]," Dipen Shah, head, private client group research at Kotak Securities, told IANS.





Healthy buying by foreign investors coupled with an overall expectation of a further reform push by the new government led to the Indian equities market making gains in the week ended August 28.







"Markets have been medium to positive [last] week while making gains. Midcap stocks have performed better. Major trigger for the coming week will be the GDP data that [came] out on Friday [August 29]," Dipen Shah, head, private client group research at Kotak Securities, told IANS.







"Going ahead, expectations on interest rate movements in the US and fiscal reforms in India will continue to drive the markets in the medium to long term. In the short term, geopolitical issues and monsoons will be the triggers to track."







The benchmark index gained 0.82 per cent in the week ended August 28 from its previous weekly close on August 9. The index closed at 26,638.11 points, while it ended trade at 26,419.55 points on August 28.







The Indian markets, which remained closed for trading Friday on account of the Ganesh Chaturthi holiday, saw healthy buying from foreign institutional investors on Thursday.







FIIs had turned net buyers on Thursday to the tune of $87.97 million, or Rs5.319 billion, according to data from National Securities Depository Limited.







Domestic institutional investors, which include banks, development finance institutions, insurance and mutual funds, bought net stocks worth Rs7.3043 crore on Thursday.







"Positive international cues like the European and Japanese central banks' stand on maintaining interest rates will be counter to any announcements by US Fed in deciding on the stimulus cut," Devendra Nevgi, chief executive research firm Zyfin Advisors, told IANS.







Week-wise, the S&P BSE sensitive index closed Monday trade at 26,437.02 points, up 17.47 points or 0.07 per cent. The Sensex made healthy gains in the trade, surpassing its previous high of 26,530.67 points recorded August 19.







However, the markets had closed flat at 26,437.02 points, up 5.79 points or 0.02 per cent in Tuesday's trade.The markets closed up 117.34 points or 0.44 percent at 26,560.15 points on Wednesday.







On Thursday, the benchmark index hit a record high of 26,674.38 points before closing the day's trade at 26,638.11 points, up 77.96 points or 0.29 per cent.







FPIs invest $3.87b



Meanwhile, foreign portfolio investors, or FPIs, continued to invest in the Indian equities market as they bought shares worth $3.87 billion in August, with the trade for the week ended August 28 at yet another record high.







Foreign institutional investors, along with sub-accounts and qualified foreign investors, have been clubbed together by market regulator Securities and Exchange Board of Indiato create a new investor category called FPIs, who invested $3.87 billion or Rs23.54 billion in the Indian equities market in August.







FPIs had poured in Rs13.11 billion ($2.18 billion) into the Indian equities market in July.












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Source: Khaleej Times (United Arab Emirates)


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