India Gains 1%

Elena
17 Mar, 2006
New York City

Indian market remains a favorite destination of emerging market investors. For the week the index rose 0.9% and industrial, media, banks and software consulting companies rose. The markets in Gulf region suffered worst declines ever in Saudi Arabia, Dubai and Egypt. Indexes in Dubai, Egypt and Saudi Arabia lost between 20% and 30% this week. Since 2002 these markets have gained between 600% and 1,200% before this correction.

8:00AM Asian markets closed mostly higher. The Nikkei surged 1.5%.
Asian-Pacific benchmarks finished mostly in the positive. The Nikkei recovered from yesterday’s deep plunge, helped by brokerages and banks to lead gainers with an advance of 1.5% to 16339.73. The Japanese index surged after Softbank announced a $15.6 billion bid for the Japanese assets of Vodafone Group. Telecom and construction stocks also provided support. Hong Kong’s Hang Seng rose 0.5%, led by China Mobile. South Korea’s Kospi rebounded from earlier losses to close up 0.4%, followed by Taiwan Weighted index, also up 0.4%, while Shanghai Composite declined 0.4%.

India’s Sensex rose 0.9% for the week on solid gains in industrial stocks.
Indian market closed lower 19 point 10,860.40 on Friday after a volatile session and for the week closed up 88 points as the index rose to new highs three times during this week. Market has witnessed steady inflows of funds from domestic and foreign investors. Reliance Mutual Fund raised $1.3 billion for a domestic mutual fund Reliance Equity Fund. Large blocks of trade were conducted in State Bank of India at a premium to the market price and in Tata Steel. Bajaj auto rose after the company announced a plan to increase its annual motorcycle production capacity to 3.5 million by 2007 and then to 5.5 million capacity to produce scooters and other vehicles by the year 2009. Zee Telefilms rose again on the news that the company is planning to raise between 20% and 40% advertising rates in the coming months. Software consultant TCS rose on the news that the company is likely to get a significant outsourcing contract from Citigroup in New York.