ADRs - Indian companies as of December 23, 2004

US Index Report

DJIA	Dow Jones Industrial Average	10827.12	+11.23
NASDAQ	Nasdaq Composite	2160.62	+3.59

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Markets weekly report: Bull run in full flow
Mumbai: The benchmark indices Sensex and the Nifty climbed to new highs on Friday thanks to the foreign institutional investors, who maintained their investment flows in the Indian equity market. While the Sensex hit a new intra-day high of 6507.94 on Friday afternoon, ending the week at 6498.06 (a new closing high) recording a gain of 2.38 per cent or 151.58 points, the 50 stock Nifty index of the National Stock Exchange peaked to a high of 2065.60 before settling down to close at 2062.70, up 2.51 per cent or 50.60 points.

The foreign institutional investors (FIIs) recorded net purchases of Rs871.6 crore (US dollar 193.3 million) in equities for the trading week ended December 24 while mutual funds (MFs) were net purchasers at Rs145.17 crore.

The foreign funds were net purchasers at Rs153.6 crore ($34 million) in the debt market for the period under review, according to the data available with the Securities and Exchange Board of India (SEBI) here.

The mutual funds were also net sellers in the debt market at Rs25.84 crore.

For the record, as of 23 December 2004, the FIIs have put in a whopping Rs5, 916 crore in the current calendar month. The inflow from FIIs for the year 2004 has crossed Rs38,000 crore.

The other major factors contributing to the continued bull run in the market are expectations of robust quarterly results from leading companies, as evident from the impressive advance tax paid by the companies so far, the easing of global crude oil prices, and a sharp decline in the country's domestic inflation. Inflation rose just 6.73 per cent as on 11 December, the first time it slipped below 7 per cent in the last six months.

Specific heavy weight stocks have helped sustain the sentiment as well. Reliance Industries (up 9 per cent to Rs523.60) bounced back with some strategically placed news announcements for the coming week, including the meeting of their board.

Bank stocks had a positive undertone on the back expectations of consolidation of the sector, with the government approving the merger of the Bank of India with the Union Bank of India. State Bank of India, with a gain of 4.4 per cent, was also responsible for the market's sharp upmove.

Metal stocks gained substantially, with Steel majors Tisco and Hindalco, moving to higher levels Expectations of a rise in automobile prices propped up auto stocks as well with Hero Honda and Bajaj Auto showing smart gains.

Oil and gas stocks gained notable ground. Telecom major Bharti Tele-Ventures (up 4.7%), construction giant Larsen & Toubro (up 4%), cigarette maker ITC (up 3.5%), power stocks Tata Power (up 2.7%), Reliance Energy (up 2.5%) and BHEL (up 1.5%) gained smartly. Cement sector pivotals mopped up gains as well.

Information technology stocks remained extremely sluggish during the week. Pharma stocks, both large and mid caps, performed creditably. With the end to the quota regime just a few days away, textile stocks continued to attract attention recording handsome gains. Fetilizer stocks also firmed up smartly. FMCGs attracted attention with Godrej Consumer climbing up 15 per cent. Media stocks were in great demand.
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