Monday, March 07, 2011
The key benchmark indices edged lower as investors shunned equities amid concerns about high oil prices and the ongoing spat on seat sharing between the Congress and its regional ally DMK. Nevertheless, the market came off the day's low after a steep intraday slide on market buzz the Congress and DMK may resolve differences over seat-sharing in assembly polls in Tamil Nadu and that a pact may be worked out by the two sides by this evening. Reports of likely good rains this year also aided the intraday recovery. The BSE 30-share Sensex was down 263.78 points or 1.43%, up 163.96 points from the day's low and off 138.98 points from the day's high. The S&P CNX Nifty fell below the psychological 5,500 mark.
CBI to file separate charge sheets against Swan (Etisalat DB), Loop Telecom and Unitech Wireless by the month-end. (ET)
L&T to raise Rs114bn from SBI-led consortium of banks. (BS)
Lanco Infratech agrees to acquire Australia’s Griffin Coal for ~Rs34bn. (ET)
Fortis Global Healthcare acquired 28.6% in Lanka Hospitals for ~Rs1.6bn. (ET).
After three straight days of solid gains, the Indian markets ended flat on Friday, as investors decided to take a pause after the post-Budget rally. Markets started off with a gap up opening in the morning, tracking strong cues from the overseas markets, especially Wall Street. US stocks had their best day in three months after the weekly jobless claims hit nearly three-year low. Asian and European markets extended their gains today, notwithstanding concerns over the Middle-East tension and its impact on oil prices. However, as the day progressed, the benchmark Indian indices were unable to hold on to their gains.
Drama is something people go through everyday. Change of character is nothing more than mood swings. ~ Kewana Bagby.
Well, just when the Indian market was looking like adding to the post-Budget gains comes yet another political jolt. The DMK has decided to pull out its ministers from the UPA II, ostensibly on differences over seat-sharing for the upcoming TN assembly polls. The DMK will offer issue-based support though.
Prices benefit as alternate investment as stocks slump
Precious metals benefited at Comex on Friday, 04 March 2011 from a flight to safety as stocks encountered renewed selling interest.
Gold hit a record high of $1432.80 per ounce and settled just off of that mark at $1431 per ounce with a 1.0% gain. It was a gain of $12.2. For the week, gold gained 1.4%.
prices rise by almost 7% for the week
Oil prices set a new record high of $104.60 per barrel at Nymex in the April contract just before they closed with a 2.5% gain at $104.42 per barrel on Friday, 04 March 2011.
For the week, the energy component climbed 6.7%, which was primarily underpinned by continued concern about social and political volatility in North Africa and the Middle East.
Prices pare early gains on demand concerns
Copper started the day in the black at Comex but turned lower as stocks deepened their losses as oil rallied on Friday, 04 March 2011.
Copper for March delivery retreated less than 1 cent, or 0.1%, to $4.47 a pound at Comex on friday. For the week, copper rose 0.7%.
The market may edge lower on political uncertainty after Dravida Munnettra Kazhagam (DMK), a key ally of the Congress-led UPA government at the Centre, said on Saturday, 5 March 2011, that it is pulling out of the government. A rally in crude oil prices and weak Asian stocks will also weigh on investor sentiment. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a fall of 68.50 points at the opening bell.