SENSEX MOVEMENT IDENTIFICATION FACTORS
|
Period |
Remarks on the Market / Sensex |
|
Quarter - 4
(Jan'05 to Mar'05) |
- Heavy selling pressure continued.
- Threat of inflation.
- Hike in interest rate.
- Dollar was strong.
- Slowdown in foreign fund flow.
- High international crude oil price.
- Q-3 results of corporates.
- Good buy in cement, auto, bank and IT segment.
- Quota system was introduced in Textile industry.
- IPO size of over Rs.4500 crore hit the primary market.
- Increase in FDI capital in telecom industry – 74%
- US Poll results – IT in favour.
- Govt. clears autonomy package for PSU banks.
- Govt. allows 100% FDI in construction sector.
- Mergers like: Dabur-Balsara, Mahindra-Renault etc.,
|
|
Quarter - 1
(April'05 to June'05) |
- Implementation of VAT.
- Special Economic Zone Bill 2005.
- Huge investment by FII's – because in expectation of interest rate cut in US.
- Announcement of banking reforms on – acquisition, revision of SLR and CRR & rising of dividend ceiling.
- FY-05 NP increased for most of premium companies.
- Mid cap companies too showed a high positive results in their previous FY.
- During month May'05 the Sensex raised upto 468 points.
|
|
Quarter - 1
(April'05 to June'05) |
- Sensex sets new record at 7178 in the beginning of June'05.
- Ambani brothers settlement.
- Stronger money flow started.
- FII's restarts pumping investment in to Indian stock market.
- Mutual Funds did a good business.
- IT export growth expected @ 30%
- Monsoon sets in India.
- PSU banks and Private banks performed well.
|
|
July 2005 |
- Corporate governance issue of Reliance Company.
- Strong FII's inflows.
- RBI released the BOP data for 2004-05.
- Banking stocks were in the limelight.
- YES bank listed its share on July 12th.
- India and US agrees to 8 major initiatives.
- Tax Protocol comes into effect on August 1st so that Indian companies can access Singapore technology at lower cost.
- China finds Indian cotton yarn attractive. Textile companies finds a good time.
- ICICI bank enters and exits NTPC.
- Profit making PSU's to get more financial autonomy.
|
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