Market Analysis: Weekly roundup till Feb 20
Benchmark indices closed on positive gains in the last week. Sensex gained 0.2 pc and closed at 16,191 and Nifty ended the week at 4,844 gaining of 0.5 pc over its previous weekends close.
Upbeat of domestic economic growth forecast is not with standing last week, global investors sold off on the fears that it may be the end of cheap money, after Fed"s unexpected raise on discount rate.
During the week BSE Mid-cap index and Small-cap index lost 1.2 pc and 0.4 pc respectively.
BSE Health Care and Bankex were the top gainers for the week, up by 1.9 pc and 1.6 pc respectively. BSE Realty and Oil & Gas were the top losers of the week, by 5.7 pc and 1.6 pc respectively.
Going
Forward
During
the
week
markets
may
see
swings
ahead
of
union
budget
on
Friday.
On
the
back
of
economic
recovery,
Finance
Minister
may
raise
excise
duty
and
Service
tax.
This
week
the
railway
budgeting
tabled
on
Feb,
24.
It is expected that railway Minister is likely to present a populist budget leaving passenger fares untouched. Apart from that, expiry of February 2010 derivatives contracts could add volatility on the bourses.
Corporate
Ex-GM
Europe
boss
to
steer
Tata
Motors
Tata
Motors
has
appointed
Carl-Peter
Forster,
former
head
of
General
Motors
Europe,
as
the
Group
Chief
Executive
Officer.
Forster will report to the company's board and will be in charge of the domestic as well as global operations.
Forster led the lengthy restructuring of troubled brands such as Opel and Vauxhall by closing plant and cutting costs.
According to Tata Motors sources, the appointment was in tune with the company's ambition of becoming a global company and that"s where Forster's huge international experience will come in handy.
Tata Motors has many overseas subsidiaries including profit-making Tata Daewoo Commercial Vehicle Company in South Korea.
Zain
has
accepted
Bharti
offer
for
African
assets,
say
sources
The
Zain
Telecom
board
have
unanimously
accepted
a
$10.7-11
billion
offer
from
Bharti
Airtel
to
buy
its
African
assets.
The
deal
will
put
Bharti
among
the
world's
top
five
or
six
telecom
operators
in
the
world.
According to Zain sources, it has received an offer in relation to its operations in Africa excluding Morocco and Sudan.
Economy
Food
prices
continue
to
pinch
common
man
Food
inflation
rose
for
the
fourth
straight
week,
the
annual
inflation
in
food
prices
rose
to
17.97
pc
for
the
week
ended
Feb
6,
a
tad
higher
than
17.94
pc
recorded
in
the
previous
week.
Prices of steel, cars, television have also been hiked. Prices of rice, sugar and vegetables are remaining stubbornly high as grain output is falling short of estimates due to the worst monsoon rains in more than three decades.
Cabinet
okays
Rs
800
cr
infusion
in
NACIL
The
Cabinet
Committee
on
Economic
Affairs
(CCEA)
approved
a
proposal
to
infuse
Rs
800
crore
equity
into
the
ailing
National
Aviation
Company
of
India
(Nacil),
which
runs
Air
India.
The fund would help the debt-ridden airline tide over the financial crisis. The CCEA also allowed ONGC Videsh Ltd (OVL) to make additional investment of $832.54 million in gas field developments projects in Myanmar.
It also cleared Gail India Ltd move to invest $502 million in gas field and an onshore pipeline project in the army-ruled state.
The Union Cabinet approved the 10 pc hike in urea prices, besides giving the industry a free hand to fix the retail Price for DAP and MoP.
Currently, urea MRP is pegged at Rs.4,830/t while DAP and MoP are priced at Rs.9,350/t and Rs 4,455/t, respectively.
(An article by DAS CAPITAL MANAGEMENT & ADVISORS Pvt Ltd)