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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.

Published by

Rahul Tibrewal
(A.C.A & MBA)
Category Shares & Stock   Report

  18 Shares   4911 Views

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