Sensex barges 16,000 barrier
Wrap up: Sensex barges 16,000 barrier >Indian markets marked the beginning of festive season with the bourses setting new paradigms for the world to see. India`s benchmark index, Sensex, this week continued the bull run and pierced the psychological barrier of 16,000. Despite negative global cues earlier in the week, the Sensex continued to march forward, thus dismissing the myth that the market was driven by sentiments. The fact that the Indian markets stood firm against the credit crises is in itself commendable and also shows that the Indian market has matured.
On Monday, the BSE Sensex fell 0.64%, or 99.37 points, to close at 15,504.43. While the broad-based NSE N ifty fell 23.35 points, or 0.52%, to settle at 4,494.65.
On Tuesday, the BSE Sensex rose 1.06%, or 164.69 points, to close at 15,669.12. While the broad-based NSE Nifty gained 51.55 points, or 1.15%, to settle at 4,546.20.
On Wednesday, the BSE Sensex rose 4.17%, or 653.63 points, to close at 16,322.75; the broad-based NSE Nifty gained 180.95 points, or 3.98%, to settle at 4,727.15.
On Thursday, the BSE Sensex rose 0.15%, or 25.20 points, to close at 16,347.95, while the broad-based NSE Nifty gained 15.2 points, or 0.32%, to settle at 4,747.55.
On Friday, the BSE Sensex rose 1.32%, or 216.28 points, to close at 16,564.23 while the broad-based NSE Nifty gained 90 points, or 1.90%, to settle at 4,837.55.
Corporate News
Mukesh Ambani`s Relian ce Industries (RIL), became the first company to attain a market capitalisation of Rs 3 trillion after the shares of the company surged 5.6% on Wednesday.
Shares of ONGC, the second largest company on the Sensex in terms of market cap, also rose around 6% to attain a market cap of Rs 1,928 billion.
Bharti Airtel`s subsidiary, Bharti Airtel Lanka, signed a three year USD 150 million deal with Chinese telecom major, Huawei Technologies to manage its networks.
UK-based Standard Chartered entered into an agreement to acquire American Express Bank (AEB), a unit of American Express Company, for USD 860 million, to strengthen its existing network and provide access to a select number of new markets.
Power transmission and distribution company KEC International bagged two new contracts in Afghanistan and Rajasthan, for the purpose of construction of transmission lines.
The Hyderabad based floriculture company, Neha International acquired the Mauritius-based Globeagro Holdings for Rs 4.13 million
IPO
Koutons Retail India (KRIL), an integrated apparel maker and retailer tapped the capital market on September 18 by way of public issue of 3,524,439 shares (it consist a fresh issue of 2,607,897 shares and an offer for sale of 916,542 shares by the existing shareholders) via 100% book building.
IPO of Chennai-based Consolidated Construction Consortium (CCCL), engaged in construction services, opened on September 18. The company plans to mop up maximum of Rs 1,887 million. It plans to float 3.7 million shares and has fixed the price band at Rs 460 to Rs 510 a share, of face value of Rs 10.
Supreme Infrastructure India` (SIIL) IPO opened on September 21. The issue includes 3,475,000 equity shares in a pr ice band of Rs 95 to Rs 108 a share and plans to raise Rs 320 million to Rs 370 million through the IPO.
New Listing
Equity shares of Nagreeka Capital & Infrastructure, the demerged entity of Kolkata-based textile manufacturer Nagreeka Exports, got listed for trading at the bourses on September 18. The scrip opened at a premium of 20%, at Rs 114 at the BSE, as compared to the base price of Rs 95.
Shares of New Delhi-based paper manufacturer, Magnum Ventures (MVL) got listed for trading at the bourses on September 20. MVL got listed at a premium of 23.33%, or at Rs 37 a share on the BSE as against its issue price of Rs 30 a share.
Sector
Deputy chairman, Planning Commission, Montek Singh Ahluwalia while addressing a Bombay Chamber of Commerce function on September 21, claimed that India is making inclusive growth. He informed that India is growing at 8 .5% to 9%, maintaining an average growth of 8.5% for last five years.
Ahluwalia said that India will be able to achieve 10% growth rate by the end of the 11th Five Year Plan if the reform process continues.
The export subsidy scheme by the Government for sugar mills is likely to be extended by one more year. This move is aimed at encouraging overseas sale of sugar amid expectation of record production of sugarcane.
Economy
India`s external debt increased 22.6% to USD 155 billion as on Mar. 31, 2007.
The external debt accounted for 16.4% of gross domestic product (GDP) and the total debt accumulation amounted to USD 28.5 billion.
The All-India Consumer Price Index for Agricultural and Rural Labourers (CPI for AL/RL) increased by four points each during August 2007 to stand at 408 points for both the series.
The net International Investment Position (IIP) of India improved by around USD 2.68 billion to USD 45.33 billion as at end-March 2007, from a level of USD -48.01 billion as at end-March 2006.
India`s wholesale price index based Inflation rate dropped to 3.32% for the week ended September 8, as against 3.52%, in the previous week. The inflation figures reflected the market estimates, which also stood at 3.32%.
Others
Market regulator SEBI has said that hedge funds are welcome to invest in India, provided they comply with the existing regulations for foreign institutional investors (FIIs).
A pact that will clear the path for release of spectrum by armed forces for second and third generation mobile services by April 2008 is to be finalised by DoT and defence ministry.
