Markets continued to gain for second consecutive week on sustained buying in a few sectors and encouraging comments about economic growth by Prime Minister.
He expected that, the growth of economy would be around 7 per cent for 2009-10. Foreign Funds invested Rs 83,070 crore in equities during the Jan-Dec 2009.
Sensex gained 104 points and closed at 17464 over its previous weekend"s close, while Nifty ended the week at 5201 netting a gain of 22 points over its previous weekends close.
During the week BSE Midcap index gained 1.1 per cent, while Smallcap index gained 2.9 per cent. Week"s top gainers were Consumer Durables and Consumer Goods indices by 3.6 per cent and 0.7 per cent respectively.
Global news on economic recovery and winding up of stimulus plans could decide the mood of the markets in the new year. Investors will keenly watch third quarter Dec 2009 results, which will be announced in the fortnight.
PowerGrid plans 7 transmission corridors
Power Grid Corporation of India Ltd (PGCIL) has identified seven high-capacity transmission corridors, for wheeling power from a number of private generation projects coming up in the eastern and southern States.
The move, entailing investments of about Rs 50,000 crore, is aimed at facilitating transfer of electricity to the power-starved northern and western regions of the country.
The estimated cost of the schemes is pegged at Rs 49,850 crore.
The focus is on evacuating electricity from coal-fired private projects coming up in States such as Orissa, Jharkhand and Chhattisgarh and imported coal-based projects along the Andhra Pradesh and Tamil Nadu coast to the northern and western regions.
PGCIL currently manages the national grid with inter-regional capacity of over 20,800 MW, which is proposed to be enhanced to 37,700 MW by 2012 through the strengthening of regional grids and building more inter-regional links.
The Centre had set a target to add 78,577 MW generation capacity during the eleventh five year Plan period, of which about 50-60,000 MW could materialize by 2012 as against only around 21,000 MW during the end of the eleventh five year plan 2013.
IT majors set sights on USD 30bn overseas outsourcing deals
As top outsourcing customers in US and Europe seek to renew their computer infrastructure management contracts worth 30 billion dollars.
Indian tech firms including HCL, Tata Consultancy Services (TCS), Wipro and Infosys are bidding against its multinational rivals IBM and HP for their share of the lucrative opportunity.
Customers such as Nokia, Xerox and Citigroup plans to outsource the management of their desktops, computer servers, storage and communication infrastructure, to reduce their operational expenses by 40 per cent and focus better on their core business.
Among large outsourcing contracts for infrastructure management, HCL signed 350 million dollars seven year deal with Readers Digest earlier this year, apart from similar deals with Nokia and Xerox.
On its part, domestic rival Wipro acquired Citi Technology Services for around 127 million dollars in Dec 2008, which came with Citigroup"s commitment to outsource all future infrastructure management contracts to Wipro, potentially worth almost 1 billion dollars over six years.
Govt to sell 8.38pc in NMDC in 2009-10
As part of its divestment programme, the government proposes to sell 8.38 per cent of its stake in NMDC through a follow-on public offer before the end of the fiscal by generating Rs.14100 crore.
The government holds about 98.38 per cent in the largest miner, and the rest is with the public. Post the offer the stake of government would be around 90 per cent in the company. The amount raised would be used for funding social sector schemes.
The NMDC public issue would be among the four FPOs planned by the government for this fiscal. Public issues of power sector PSUs - NTPC, REC and SJVNL are also likely this fiscal.
Inflation at 11 year high
The annual food inflation rose to a near 11-year high, but policymakers took heart from cheaper perishable food items for the second straight week after an influx of vegetables and fruit into markets.
Economists and policymakers expect further easing of perishable food prices after government data on Thursday, Dec 31 showed that the food articles sub-index dropped 0.4 per cent to 287.7.
(An article by DAS CAPITAL MANAGEMENT & ADVISORS Pvt Ltd)