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Markets
on a roll - indices at all time highs
Mumbai: Thursday has turned out to be a landmark
day for the bourses with both the Sensex and the Nifty
erasing all earlier records. The BSE benchmark index
breached 6,300 for the first time, to close at 6,328.43.
The S&P CNX Nifty also closed above the 2,000-point
level, at 1999 with a gain of about 36.95 points or
1.9 per cent.
The
FIIs have pumped in net investments of Rs2,236 crore
over the last four days. Brokers see the high FII activity
as a means to boost their year-end net asset value,
as this would help in making higher allocations to their
India portfolio for the next year.
Market
Gainers
Reliance Industries, HDFC, State Bank of India, Corporation
Bank, Andhra Bank, Allahabad Bank, Hindustan Petroleum,
Bharat Petroleum, Indian Oil Corporation, ACC, Amrutanjan,
Neyveli Lignite, Crompton Greaves, GlaxoSmithKline Beecham
Healthcare, GAIL, IOC, ONGC
Market
Losers
Infosys, Satyam, Wipro, Hexware Technologies, McDowell,
Shasun Chemicals
Market
Counters
BSE 30
Figures in Rupees
Gain (+) / Loss (-)
| ACC |
294.25 |
| Bajaj
Auto |
1,052.55 |
| Bharti
Televentures |
185.70 |
| BHEL |
637.25 |
| Cipla |
288.40 |
| Dr.
Reddys Laboratories |
800.80 |
| Grasim
Industries |
1,172.00 |
| Gujarat
Ambuja |
370.80 |
| HDFC |
803.95 |
| HDFC
Bank |
488.20 |
| Hero
Honda Motors |
474.00 |
| Hindalco
Industries Limited |
1,339.80 |
| Hindustan
Petroleum Corp |
370.15 |
| HLL |
144.10 |
| ICICI
Bank |
343.70 |
| Infosys
Technologies |
2,081.90 |
| ITC |
1,286.35 |
| Maruti
Udyog |
425.95 |
| MTNL |
125.90 |
| ONGC |
831.80 |
| Ranbaxy
Labs |
1,129.50 |
| Reliance
Energy |
573.05 |
| Reliance
Industries |
541.80 |
| Satyam
Computer Services |
423.85 |
| State
Bank Of India |
581.70 |
| Tata
Motors |
489.10 |
| Tata
Power |
351.80 |
| TISCO |
330.90 |
| Wipro |
755.00 |
| Zee
Telefilms |
157.50 |
Others
Corporation Bank stock surged by Rs51.8 or about
17 per cent to Rs356.2.
GlaxoSmithKline Beecham Healthcare up 13-per
cent at Rs323.30.
Neyveli Lignite up 7-per cent at Rs.63.75
Hexaware Technologies down 3.1 per cent or Rs16.9
to Rs525.55
McDowell down Rs5.85 or 4.7 per cent to Rs118.8
Cox & Kings up10 per cent at Rs30.30
Solectron Centum Electronic up 5.07 per cent
at Rs125.45
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FII
bull run will continue, say market analysts
Mumbai: On the back of continued buying by the
FIIs, the stock indices on Thursday closed at an all-time
high.
The markets expect that Foreign institutional investor
(FII) inflows into the equity market would continue
as there are expectations that the Government would
take up tax reforms during the Union Budget for the
next fiscal.
Higher
capital expenditure, lowering of capital gains taxes,
increase in weightage of India in Morgan Stanley Capital
International (MSCI) index and the appreciating rupee
against the US dollar were other factors that would
propel foreign investors to continue buying.
According to investment banking firm Merrill Lynch,
"We are headed for another phase of strong investment
spend led not only by corporate capex but also a surge
in infrastructure spend. We estimate total investments
to rise sharply from $120 billion in financial 2004
to $208 billion in 2007, led by a sharp jump in infrastructure
spending, especially in power and oil exploration."
Another
investment banking firm, JP Morgan, said the huge inflow
of foreign funds is due to lowering of capital gains
tax in the last Budget. "India is the only emerging
market that imposes a capital gains tax on foreign institutional
investors. In the latest budget, short-term capital
gain tax was reduced to 10 per cent from 30 per cent
and long-term capital gain tax was brought down to zero.
The result is that more funds are investing directly
in India," it said. Until now, $7.3 billion have
been invested.
A
top official of a foreign broking firm said that hedge
funds are not investing directly in India, but once
SEBI allows them to do so, there would be a huge inflow
of funds from them. It has been pointed out that hedge
funds have seen a spurt in the assets under their management
since 2000. According to Ms Joanne Murphy, Head of Sales
(Asia Pacific), Alternate Fund Services, HSBC Securities
Services, funds managed by hedge funds worldwide has
increased from $8 billion in 2000 to $31 billion in
2001, $50 billion in 2002 and to $60 billion by 2003.
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