This was one Friday the 13th that turned out to be lucky for the markets. The Bombay Stock Exchange Sensex went up by 413 points (4.95%) from its last close.
This was one Friday the 13th that turned out to be lucky for the markets. The Bombay Stock Exchange Sensex went up by 413 points (4.95%) from its last close. The rally was broad-based with all sectoral indices going up.
DLF led the pack with an increase of 11.71% and Tata Motors followed close behind with a gain of 10.72%. “Prices have been in absolute distress and a rally has been overdue,” said Dhiraj Sachdev head, portfolio management services, HSBC Asset Management.
With stock markets in the United States rallying over the last few days, the Indian market saw a spill-on effect. Naresh Kothari, Head, Institutional Equities, Edelweiss Securities said, “The Dow Jones Industrial Average has been rallying and is up 10% from its bottom.
This has been a positive for the market.” The Dow has gained 623 points since Tuesday.
The Dow is a stock market index made up of 30 American stocks, and like the Sensex in India, it gives investors an idea of where the broader market is headed.
Bank of America, the biggest bank in the US, said on March 12, that it was profitable in the first two months of 2009. This after Citigroup said the same thing a few days back. Due to its optimism, the Dow has been rallying.
Good macroeconomic numbers over the last few days also helped. “There has been positive news from the auto and the cement industries. The lower inflation number also helps,” said Sachdev. Inflation stood at 2.43% on February 28.
Experts feel investors are gradually moving from investing in aggressive sectors like banks. Amitabh Chakraborty, president equity, Religare Securities, said, “There is a rotation that is being seen from defensive sectors such as fast-moving consumer goods and pharma to slightly more aggressive allocations such as banks, auto and capital goods.”
Will the rally sustain? “Asian stocks have been oversold and due for a bounce but I’m not convinced yet that this is sustainable,” said Mark Tan, who helps manage about $3 billion in Asian equities at UOB Asset Management in Singapore. —With Bloomberg inputs
Recent Sensex gains In points In %
Oct 31, 08 743.55 8.22
Nov 3, 08 549.62 5.62
Nov 10, 08 571.87 5.74
Nov 21, 08 464.20 5.49
Dec 4, 08 482.32 5.51
Dec 10, 08 492.28 5.37
Mar 13, 09 412.86 4.95
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