Stocks gain 9% last week on economic optimism

Stocks gain 9% last week on economic optimism
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First Published: Sun, Jul 19 2009. 02 37 PM IST
Updated: Sat, Aug 08 2009. 12 40 PM IST
On Monday, Indian stocks fell to a two-month low, led by Tata Steel Ltd and other metals producers after commodities prices went down, and on concern that government measures may not be enough to revive the economic growth. A gauge of 6 metals traded on the London Metals Exchange fell 1.3%. Metals and infrastructure-related companies led the decline.
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The Bombay Stock Exchange 30-share benchmark, Sensex, rose on Tuesday after the Indian Meteorological Department (IMD) said they expect good monsoon rains, helping alleviate concerns of slower GDP growth. Infrastructure-related stocks soared. Steel companies rose on improving demand and higher prices.
On Wednesday, the Sensex surged on higher metal prices, and after finance minister Pranab Mukerjee said that stimulus measures were showing positive results. He said steel and cement production grew by 13% from last year. Infrastructure-related firms led the gains for the day.
The market changed direction at least 26 times on Thursday before ending flat. Infrastructure stocks led the decline after Larsen and Toubro said its first quarter orders dipped 22% from the previous year. Mahindra Holidays and Resorts India went public, opening at Rs300. Shares rose as much as 25% during the day and settled approximately 6% higher at the closing bell.
The Sensex on Friday shot up on news that the ministry of finance would sell 5-10% of its stake in various public sector undertakings. Strong global cues also helped the markets rally.
Both the Sensex and the NSE Nifty gained approximately 9% this week.
Top gainers for the week were Reliance Infrastructure, Mahindra and Mahindra, Jaiprakash Associates, ICICI Bank, and Tata Motors.
Top losers were Sterlite Industries, NTPC, and Reliance Industries.
Sector indices made good gains for the week. Auto, Banking, IT and Telecom led the gains, followed by Realty, FMCG, Metal, Power, Capital Goods, Small Cap, Mid Cap, Pharma, and Oil and Gas.
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First Published: Sun, Jul 19 2009. 02 37 PM IST
More Topics: Sensex | Nifty | Stocks | Shares | Markets |