The stock markets are nearing their all time highs leading cheers from investors
On Monday (May 28) the markets opened on a positive note. Sensex was up 59 points to close at 14,397.89 and the Nifty was up around 8 points to close at 4,256.55 points. The interesting thing to note was that the mid cap counters recorded good gains. Consequently the mid cap index rose sharply due to some heavy buying in select mid cap stocks by institutional buyers. The buying in mid-cap companies was also due to the fact that most of them posted good results for the 2006-2007. There was sharp rise in the price of Nirma. The stock surged by 20 per cent to close at Rs 198.30. Interestingly at the end of the market session there were some pending buying orders for the stock, which could not be executed since there were no sellers. Another notable rise was in Crompton Greaves counter, which was up 6.4 per cent to close at 240.30 on the news of its acquisition of an Irish company. Other companies which gained included Thermax, HDFC Bank and Allahabad Bank. Suzlon Energy was among the top losers, felling by about 7 per cent.
Tuesday was day when the Sensex added 100 points to close at 14,508.21 and Nifty hit a new high of 4,299 intra day to close at 4,293.25, up 36 points. A part of this high rise was aided by the global indices. The FIIs also did some high-ticket buying.
The capital goods companies led the rally on Tuesday. Most of the companies operating in this space hit their life-time highs. Larsen and Tubro, Thermax, ABB, Crompton Greaves all surged. L&T's blockbuster result also supported the gains in the capital goods counters. The company reported a 50 per cent rise in its fourth quarter profit. The company has also been gaining interest on the talks that it is going to list its infotech arm early next year. Among the capital goods pack, BHEL was among the top gainers. The stock gained around 4.86 per cent ahead of its issue of bonus shares in 1:1 ratio. The counter closed at Rs 2856.20. KK Birla-owned Texmaco gained 7 per cent to close at Rs 1,097.25.
On Wednesday the tremors in the Chinese markets were replicated on the Dalal Street. The Sensex snapped the continuous 3-day rally to close at 14,411.38, down 96.83 points. The Nifty touched a new high of 4,301.60 intra day but slipped 1 per cent to close at 4249.65. Chinese equities fell around 7 per cent after the country's government trebled the securities transaction tax to cool the 'overheated' market. The fall was further aided by the unwinding of positions for May futures. Capital goods, however, again rallied on Wednesday led by L&T, which touched an all time of Rs 2010 intra day. The stock closed at 1,995. Punj Lloyd also gained 6 per cent to close at Rs 208.10. Patni Computers was the top loser of the day, shedding 7.63 per cent to close at Rs 522.
On Thursday the markets made a strong statement to eco the rising global markets following the Fed's statement on the stability on interest rates. Major Asian benchmarks rebounded in line with the rally in Chinese shares which had led a sell off in Asia the previous day. The CSO data on the consistent double digit growth in manufacturing and services also helped the markets to recoup its previous day's losses. The data released by the CSO said that the economy grew a whopping 9.4 per cent in 2006-2007. The data also said there was a growth of 8.4 per cent growth in per capita income. The Nifty hit an all time high of 4,295.80. The Sensex closed 133 up, at 14,544.44 points. Among the sectoral indices the biggest gainer was the BSE Consumer Durable Index. Short covering of derivatives position also helped to pull up the markets to some extent. Deccan Aviation gained 11.56 per cent to close at Rs 146.20 on the news of Vijay Mallya -picking up a 26 per cent stake in the former.
Friday kept up the tempo of the markets. The 30-share Sensex was quite close to breaching its previous high of 14,723.88, touching a high of 14,682 intra day. It finally ended at 14,570.75 up 26.29 points. The Nifty also touched a new peak of 4,325 intra day but closed at 4,297 up1.25 points over the previous day. The information technology shares came into limelight after getting battered for the past few sessions. Banking stocks also generated much of investors' interest but the consumer durable and FMCG stocks remained soft.
State Bank was up 2 per cent to close at Rs 1,379 on Friday. The stock has surged 5.52 per cent over the week.