Saturday, February 28, 2009

>Weekly Review (INDIA INFOLINE)


* In a highly eventful week, the bulls managed to hold their own, thanks largely to the latest tax cuts announced by the government to spur demand. The Government also announced fresh measures for recession-hit export sectors. Expectations of interest rate cuts escalated after inflation hit a 14-month low of 3.36%. This helped the BSE-30 Sensex to post marginal gain of 0.5% to 8.892. The NSE Nifty added 1% to shut shop at 2,764. The bulls shrugged off weak Q3 GDP data, which missed market expectations.

* Auto stocks rallied this week, after the Government announced a 2% cut in excise duty and service tax. IT stocks also managed to notch up some gains after the Indian Rupee fell to a new record low below Rs 51 against the US Dollar. At the same time, banking and realty stocks ended up on the losing side for the week.

* Economic reports from across the globe continued to haunt the major equity markets. Top companies like GM and RBS announced massive losses, Japan's trade deficit reached a record level and its industrial production dropped 10%. Sales of existing US homes fell 5.3% to 12 year low. The Chinese stock market tumbled 7.9% snapping its rally.

To see full report: Weekly Review 27-02-2009