Saturday, March 14, 2009

>Weekly Review (INDIA INFOLINE)

Key Indian stock indices advanced in a truncated trading week, tracking strong gains acroos the globe. The lowest rate of inflation in six and a half years (2.34%) also aided the recovery of Dalal Street. Finally, the BSE 30-shares Sensex surged 5.2% to close at 8,757. The NSE Nifty climbed 3.8% to shut shop at 2,719 shrugging off negative IIP data for January at -0.5% and continuous selling by the FIIs.

Metal stocks surged, led by gains in Tata Steel Following statements by Chinese premier Wen Jiabao that the government will allocate money for stimulating demand. Also, firm steel prices on LME lifted the steel stocks back home. Auto stocks like Hero Honda, Maruti and Tata Motors clocked impressive gains amid hope that the worst for the sector is over. Banking and IT stocks were among the other prominent gainers.

Financial and banking stocks led the reversal across major equity indices. Citigroup, JP Morgan and Bank of America said the banks were profitable in the first two months of the year. Bank of America CEO also said that the bank will not need further federal government capital. In Asia, both the Nikkei and the Hang Seng indices surged over 5%. The Chinese market fell due to poor economic reports.

To see full report: WEEKLY REVIEW 13-03-09