Saturday, 24 November 2012

Sensex recovers 197 points on hopes of more reforms

Sensex recovers 197 points on hopes of more reforms
Clean Media Correspondent

MUMBAI, Nov 24 (CMC) Stocks: Expectations of more reform measures in the winter session of Parliament in view of rejection of no-trust motion moved by Trinamool Congress against the Government pushed up the BSE benchmark Sensex by 197 points to 18,506.57, snapping two weeks of losing spree. 

Persistent foreign fund inflows into equity market also boosted the market sentiment. 

An attempt by the former UPA ally to bring a no-trust motion against the Congress-led Government over FDI in retail failed in the Lok Sabha for want of requisite numbers. This supported the uptrend in the market, brokers said. 

Placing of key Bills regarding insurance and pension reforms in the winter session too gave a leg-up to the market. 

Brokers said buying at low levels in selective counters helped the 30-share Sensex to end in positive zone. 

Traders said Indian stock market was also helped by firm Asian trends on reports that President Barack Obama is confident of striking a deal with US Congress on a new budget. 

Some short-covering was seen ahead of expiry of derivatives contract on November 29, pushing the BSE benchmark up, they added. 

The Bombay Stock Exchange (BSE) sensitive index resumed higher at 18,349.53 and hovered in a range of 18,567.68 and 18,255.69 before ending at 18,506.57, showing a gain of 197.20 points, of 1.08 per cent, over the last week. 

The NSE 50-share Nifty also shot up by 52.55 points or 0.94 per cent to 5,626.60. 

The Bankex gained by 1.21 per cent as Banking Laws Amendment Bill, 2011, which seeks an increase in the voting rights of large shareholders in private banks to 26 per cent from 10 per cent, will be tabled in the winter session. 

"The winter session of Parliament began, but no business was transacted in the first two days, raising concerns over the fate of various Bills which are proposed to be presented and passed in the session," said Dipen Shah, Head of PCG Research, Kotak Securities. 

"Next week is a truncated trading week. In the coming week, markets may remain volatile as traders roll over positions in the futures and options (F&O) segment from the near month November 2012 series to December 2012 series. The near-month November 2012 derivatives contracts expire on Thursday, November 29, 2012," a broker said. 

Foreign Institutional Investors (FIIs) continued their buying spree by investing net Rs 1,671.47 crs during the week including the provisional figure of Novermber 23. 

Major gainers from the sensex pack were M&M 6.67 per cent, followed by ITCBSE -0.88 % 4.32 per cent, HDFC BankBSE 0.04 % 4.21 per cent, MarutiBSE 0.00 % 3.84 per cent, Sun PharmaBSE 1.00 % 3.86 per cent, Tata PowerBSE 1.14 % 2.92 per cent, Coal IndiaBSE 0.92 % 2.01 per cent and WiproBSE -1.07 % 1.99 per cent. 

Among other sectorial indices, the BSE-FMCG shot up by 2.57 pc followed by BSE-Auto 1.53 pc, BSE-Teck 1.19 pc and BSE-IT 1.13 pc while BSE-PSU dropped by 1.23 pc, BSE-Power 1.20 pc and the BSE-Realty 1.06 pc.

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