The BSE Sensex surged past the 15,000 mark, extending the rally to the thirteenth consecutive week. Government’s plans to introduce a slew of market-oriented economic reforms and some signs of recovery in the domestic and global economies boosted the key indices.
The BSE sensex rose 478 points or 3.3 per cent to 15,104, Nifty gained 138 points or 3.1 per cent to 4,587. Mid caps and small caps performed much better than broader indices, rising 7 per cent and 7.8 per cent, respectively.
Markets this week
The market could consolidate its gains this week but an upmove will depend on global cues. Profit-booking could happen at higher levels in the run-up to the budget. However, stronger foreign inflows (totalling Rs 1,200 crore in first four days of June) could cushion the the downside. Any policy action to revive growth in the badly hit SME, exports, textiles, commercial vehicles, infrastructure and housing segments would be a positive. The markets will keep an eye on the progress of the Monsoons.
STOCK TO WATCH
The REpower ownership issue which has been an overhang on the Suzlon stock for some time now has finally been resolved. The company announced on Saturday that the final tranche of shares in REpower (its German subsidiary) held by Martifer, totalling 14.4 per cent, has been now transferred to Suzlon. With this transaction, Suzlon now holds about 90.72 per cent of shares and voting rights in REpower. | ||||||||||||||||
The development follows renegotiated financial terms for the acquisition of REpower and is expected to be positive in the form of a rerating of the stock. Earlier, there were concerns as to how the company will fund this acquisition given balance sheet constraints and credit crunch. Moreover, the firming up of crude oil prices and renewed focus on alternative energy are positives for the company.