US stock futures rise ahead of economic data
World markets rally on Fed's US assessment
Dow Chemical 1Q profit drops 97 percent
Oil jumps above $51 on optimism recession slowing
Cigna 1Q profit more than triples
Procter & Gamble profit falls as consumers cut back
Crude rises despite large buildup in inventory
Motorola loss widens
Lewis out as Bank of America chairman, remains CEO
Thursday, April 30, 2009
Monday, April 27, 2009
World Markets Struck by Swine Flu Fears
World stock markets fell today as investors worried that a deadly outbreak of swine flu in Mexico could go global and derail any global economic recovery.
Volatile Sensex ends marginally higher
The Sensex opened 92 points lower at 11,237, and touched a low of 11,177 owing to weak cues from the Asian markets. The index, however, soon recovered and rebounded into the positive zone backed by fresh buying in banking, capital goods and metal stocks.
The index moved up to a high of 11,492 - up 315 points from the day's high. Profit taking in noon trades saw the index slip back into red. The Sensex thereafter displayed zig-zag movement and finally ended with a gain of 43 points at 11,372.
The BSE Bankex rallied 2.4% to 5,727, and the Capital Goods index gained 1.6% at 8,072. However, the Realty index dropped 2.4% to 2,202.
The market breadth was negative. Out of 2,582 stocks traded,1,341 declined and 1,158 advanced.
Meanwhile elsewhere in Asia - the Hang Seng slumped 2.7% (418 points) to 14,840. The Taiwan Weighted index dropped 3% to 5,705. The Shanghai Composite and the Straits Times declined nearly 2% each.
INDEX MOVERS...
ICICI Bank surged 8% to Rs 468. Wipro and Sterlite advanced over 4% each to Rs 325 and Rs 415, respectively.
Jaiprakash Associates and TCS rallied over 3.5% each at Rs 130 and Rs 603, respectively.
Larsen & Toubro and Sun Pharma added over 2.5% each to Rs 908 and Rs 1,230, respectively.
...AND THE SHAKERS
Ranbaxy slipped over 4.5% to Rs 168.
Reliance infrastructure and Reliance Communications shed over 3.5% each to Rs 711 and Rs 223, respectively.
Hindustan Unilever, ACC and Tata Steel dropped 3% to Rs 231, Rs 659 and Rs 253, respectively.
VALUE TOPPERS
ICICI Bank has topped the value chart with a turnover of Rs 366.67crore followed by Reliance Capital (Rs 208.85 crore), Jaiprakash Associates (Rs 198.91 crore), Reliance (Rs 195.64 crore) and Indiabulls Realestate (Rs 175.95 crore).
The index moved up to a high of 11,492 - up 315 points from the day's high. Profit taking in noon trades saw the index slip back into red. The Sensex thereafter displayed zig-zag movement and finally ended with a gain of 43 points at 11,372.
The BSE Bankex rallied 2.4% to 5,727, and the Capital Goods index gained 1.6% at 8,072. However, the Realty index dropped 2.4% to 2,202.
The market breadth was negative. Out of 2,582 stocks traded,1,341 declined and 1,158 advanced.
Meanwhile elsewhere in Asia - the Hang Seng slumped 2.7% (418 points) to 14,840. The Taiwan Weighted index dropped 3% to 5,705. The Shanghai Composite and the Straits Times declined nearly 2% each.
INDEX MOVERS...
ICICI Bank surged 8% to Rs 468. Wipro and Sterlite advanced over 4% each to Rs 325 and Rs 415, respectively.
Jaiprakash Associates and TCS rallied over 3.5% each at Rs 130 and Rs 603, respectively.
Larsen & Toubro and Sun Pharma added over 2.5% each to Rs 908 and Rs 1,230, respectively.
...AND THE SHAKERS
Ranbaxy slipped over 4.5% to Rs 168.
Reliance infrastructure and Reliance Communications shed over 3.5% each to Rs 711 and Rs 223, respectively.
Hindustan Unilever, ACC and Tata Steel dropped 3% to Rs 231, Rs 659 and Rs 253, respectively.
VALUE TOPPERS
ICICI Bank has topped the value chart with a turnover of Rs 366.67crore followed by Reliance Capital (Rs 208.85 crore), Jaiprakash Associates (Rs 198.91 crore), Reliance (Rs 195.64 crore) and Indiabulls Realestate (Rs 175.95 crore).
Investment strategy henceforth...
Amid expectations of volatility and range bound markets, experts believe that this is the right time to build a good long-term portfolio. The ultimate advice to nail into one’s head is whether you make money.
Whether it is a bear market rally or bull market, it is an academic question. Assuming the Sensex rallies to 16,000 and then falls to 7,500 levels, this would have been a bear market rally, but one that produces a 100 per cent gain. What counts is to make money.
On how global markets are likely to move, the general opinion is that following the rally uptil end April we would have a correction. This would be followed by renewed strength until July and then weakness again, but the March 6 lows on the S&P 500 at 666 may hold.
Fot the next few months India should continue to trade up, but interrupted by corrections.
So, if the markets are to go up, then there is a lot to be made. Notably, the Indian market is the second best in terms of growth, next only to China, which provides comfort given that 11 of the 15 markets in the world are expected to report a decline in their GDP growth in CY2009.
On the flip side, an unfavourable outcome in domestic elections may prevent the markets from rising, if not fall, should global markets look up. In the context of the current situation, taking a call on investing may look all the more tricky. What is compelling now, says Gul Teckchandani, investment consultant, “You are getting the price advantage. But, buy with at least a one-year perspective.” He adds, “Apart from the basic checks (management, track record, earnings growth), one can buy stocks with PE with 3-4 in the B-group and 7-8 PE in A-group. Avoid businesses that you don’t understand and ones from export-oriented sectors (excluding IT) where there is a slowdown.”
Among the most common advice by experts, for investors who are already invested and aim to make use of the expected near-term volatility, is to book profits on sharp rallies and hold some cash in the portfolio to take the advantage of the expected volatility. Using the cash to invest on dips (particularly during elections) in a phased manner is also advised. Investors can look at the companies, which are relatively stable and are leaders in their respective segments. Stick to domestic-consumption led stories.
Regarding the sectors and themes that could reap good returns are FMCG, telecom and pharma besides, interest rates sensitive like banking and auto. Selectively investing in infrastructure-related companies (less leveraged and well-diversified) is seen as a good strategy, as irrespective of which party forms the government, infrastructure development will remain a focus area. However, the common advice ia to avoid cyclicals and real estate.
Whether it is a bear market rally or bull market, it is an academic question. Assuming the Sensex rallies to 16,000 and then falls to 7,500 levels, this would have been a bear market rally, but one that produces a 100 per cent gain. What counts is to make money.
On how global markets are likely to move, the general opinion is that following the rally uptil end April we would have a correction. This would be followed by renewed strength until July and then weakness again, but the March 6 lows on the S&P 500 at 666 may hold.
Fot the next few months India should continue to trade up, but interrupted by corrections.
So, if the markets are to go up, then there is a lot to be made. Notably, the Indian market is the second best in terms of growth, next only to China, which provides comfort given that 11 of the 15 markets in the world are expected to report a decline in their GDP growth in CY2009.
On the flip side, an unfavourable outcome in domestic elections may prevent the markets from rising, if not fall, should global markets look up. In the context of the current situation, taking a call on investing may look all the more tricky. What is compelling now, says Gul Teckchandani, investment consultant, “You are getting the price advantage. But, buy with at least a one-year perspective.” He adds, “Apart from the basic checks (management, track record, earnings growth), one can buy stocks with PE with 3-4 in the B-group and 7-8 PE in A-group. Avoid businesses that you don’t understand and ones from export-oriented sectors (excluding IT) where there is a slowdown.”
Among the most common advice by experts, for investors who are already invested and aim to make use of the expected near-term volatility, is to book profits on sharp rallies and hold some cash in the portfolio to take the advantage of the expected volatility. Using the cash to invest on dips (particularly during elections) in a phased manner is also advised. Investors can look at the companies, which are relatively stable and are leaders in their respective segments. Stick to domestic-consumption led stories.
Regarding the sectors and themes that could reap good returns are FMCG, telecom and pharma besides, interest rates sensitive like banking and auto. Selectively investing in infrastructure-related companies (less leveraged and well-diversified) is seen as a good strategy, as irrespective of which party forms the government, infrastructure development will remain a focus area. However, the common advice ia to avoid cyclicals and real estate.
Sunday, April 26, 2009
On high octane
The stock market rally in India in the last seven weeks has been substantial and swift.
The 30-share BSE Sensex has risen by 33.5 per cent in just six weeks (from March 9 till April 21) and another 2.84 per cent over the next week, taking total gains to nearly 39 per cent over seven weeks. This performance is the second best among key global markets.
Interestingly, all the 15 popular global markets have reported gains, with eight of them up between 20 and 30 per cent during the six weeks.
Thus by far, the domestic market rally is driven by and reflects improved global sentiments.
In other words, it also suggests that even as India is economically dependent (by about 85 per cent) on domestic consumption in terms of GDP growth, its financial markets to a large extent are influenced by global sentiments. Additional proof: FIIs have invested $1.08 billion (since April 1) or $1.4 billion (since March 9) till April 21—domestic institutions have pumped in about Rs 750 crore – as compared to $1.65 billion of sales between January 1, 2009 and March 9. The case is not significantly different for others markets.
This change in global sentiment is led by positive news flow in the recent past including the new Geithner plan (in US), the G-20 meet (committing a $1 trillion boost), US President Barack Obama talking about things getting better, the stimulus packages and monetary measures undertaken earlier by various governments and central banks.
The 30-share BSE Sensex has risen by 33.5 per cent in just six weeks (from March 9 till April 21) and another 2.84 per cent over the next week, taking total gains to nearly 39 per cent over seven weeks. This performance is the second best among key global markets.
Interestingly, all the 15 popular global markets have reported gains, with eight of them up between 20 and 30 per cent during the six weeks.
Thus by far, the domestic market rally is driven by and reflects improved global sentiments.
In other words, it also suggests that even as India is economically dependent (by about 85 per cent) on domestic consumption in terms of GDP growth, its financial markets to a large extent are influenced by global sentiments. Additional proof: FIIs have invested $1.08 billion (since April 1) or $1.4 billion (since March 9) till April 21—domestic institutions have pumped in about Rs 750 crore – as compared to $1.65 billion of sales between January 1, 2009 and March 9. The case is not significantly different for others markets.
This change in global sentiment is led by positive news flow in the recent past including the new Geithner plan (in US), the G-20 meet (committing a $1 trillion boost), US President Barack Obama talking about things getting better, the stimulus packages and monetary measures undertaken earlier by various governments and central banks.
Thursday, April 23, 2009
Sensex ends up 317pts; Wipro, Tata Steel soar
The Sensex today opened up 24 points at 10,842. Soon the index slipped into the red and touched a low of 10,759.
The index, thereafter, rebounded into the positive zone and gained strength as the day progressed. Agressive buying towards the end saw the index soar to a high of 11,203 - up 444 points from the day's low.
The Sensex finally ended at 11,135, up 317 points from the previous close.
The market breadth was positive. Out of 2,599 stocks traded, 1,447 advanced and 1,049 declined.
INDEX MOVERS
Wipro soared 11% to Rs 313. Tata Steel surged 9% to Rs 263.
Grasim and Reliance Infrastructure gained 7% each at Rs 1,706 and Rs 713, respectively.
Maruti Suzuki, Sterlite and ICICI Bank rallied 6% each to Rs 800, Rs 390 and Rs 424, respectively.
Tata Motors gained over 5.5% at Rs 245. Infosys, DLF, Reliance Communications, Jaiprakash Associates, TCS, Larsen & Toubro, Mahindra & Mahindra and Hindalco advanced 4-5% each.
OTHER PROMINENT GAINERS...
Ashok Leyland and HDIL zoomed 12% each to Rs 23 and Rs 145, respectively. Indiabulls Realestate, Lanco Infrastructure, JSW Steel, Tech Mahindra, Educomp Solutions, SAIL, Adani Enterprises, Axis Bank, Max India, LIC Housing Finance and Petronet LNG surged 6-11% each.
...AND THE LOSERS
Bajaj Holdings and Investments crashed 10% to Rs 376. Zee Entertainment plunged 6% to Rs 119. Rolta India, Jai Corp, Yes Bank, Unitech and RCF fell 3-6% each.
MOST ACTIVE COUNTERS...
Reliance topped the value chart with a turnover of Rs 234.72 crore followed by Reliance Capitals (Rs 219.76 crore), HDIL (Rs 212.23 crore), Reliance Infrastructure (Rs 196.81 crore) and Tata Steel (Rs 179.54 crore).
Unitech led the volume charts with trades of over three crore shares followed by HDIL (1.55 crore), Suzlon (1.54 crore), Reliance Natural Resources (1.51 crore) and Ispat Industries (1.14 crore).
Wednesday, April 22, 2009
Sensex falls for third straight day on profit-selling...
The Bombay Stock Exchange benchmark Sensex failed to preserve early gains on today and closed with a loss of nearly 80 points, the third decline in a three day row.
The Sensex, which had recorded a gain 138 points at the outset, tumbled to end 80.57 points lower at 10,817.54. The key index touched the day's high 11,036.24 and a low of 10,715.66.
Similarly, the 50-share National Stock Exchange index Nifty fell 35.00 points at 3,330.30, after rising to 3,401.10 points and dipping to 3,296.90 points.
Seven in the Sensex pack, led by Reliance Industries and ACC, closed higher and averted any major fall. However, the other 23 ended with losses.
Marketmen said the surge in share prices of firms such as Bharti Airtel, Maruti Udyog and DLF Ltd in the past few sessions attracted profit selling by speculators at existing higher levels.
They said trading sentiment remained bearish with the general elections on and the opinion polls showing no clear winner.
ACC Ltd gained 5.26 per cent to Rs 645.75, after the biggest cement maker said first-quarter profit rose 13 per cent, better than market expectations.
Wipro Ltd, a major software exporter, surged to a six-month high by gaining 2.70 per cent to Rs 281.65 after the company announced four per cent rise in profit.
The market ended in negative territory as stocks in realty, consumer durables, capital goods, auto, banks, healthcare, power and the refinery segment recorded small to notable losses.
However, a rise in IT and fast-moving consumer goods stocks saved the market from any further fall.
The realty sector index fell 4.57 per cent to 2,146.49, consumer durables 4.05 per cent to 1,771.53, capital goods 2.94 per cent to 7,561.96, auto 1.91 per cent to 3,300.31, healthcare 1.49 per cent to 3,006.03, bank 0.76 per cent to 5,276.29, metals 1.20 per cent to 6,755.00 and oil & gas 0.62 per cent to 7,802.70.
With selling pressure spread widely, the smallcap index fell 1.57 per cent to 3,964.82 and the midcap index by 1.03 per cent to 3,486.93.
On the other hand, the FMCG index gained 0.48 per cent to 2,114.45 and the IT index by 0.26 per cent to 2,427.35.
The Sensex, which had recorded a gain 138 points at the outset, tumbled to end 80.57 points lower at 10,817.54. The key index touched the day's high 11,036.24 and a low of 10,715.66.
Similarly, the 50-share National Stock Exchange index Nifty fell 35.00 points at 3,330.30, after rising to 3,401.10 points and dipping to 3,296.90 points.
Seven in the Sensex pack, led by Reliance Industries and ACC, closed higher and averted any major fall. However, the other 23 ended with losses.
Marketmen said the surge in share prices of firms such as Bharti Airtel, Maruti Udyog and DLF Ltd in the past few sessions attracted profit selling by speculators at existing higher levels.
They said trading sentiment remained bearish with the general elections on and the opinion polls showing no clear winner.
ACC Ltd gained 5.26 per cent to Rs 645.75, after the biggest cement maker said first-quarter profit rose 13 per cent, better than market expectations.
Wipro Ltd, a major software exporter, surged to a six-month high by gaining 2.70 per cent to Rs 281.65 after the company announced four per cent rise in profit.
The market ended in negative territory as stocks in realty, consumer durables, capital goods, auto, banks, healthcare, power and the refinery segment recorded small to notable losses.
However, a rise in IT and fast-moving consumer goods stocks saved the market from any further fall.
The realty sector index fell 4.57 per cent to 2,146.49, consumer durables 4.05 per cent to 1,771.53, capital goods 2.94 per cent to 7,561.96, auto 1.91 per cent to 3,300.31, healthcare 1.49 per cent to 3,006.03, bank 0.76 per cent to 5,276.29, metals 1.20 per cent to 6,755.00 and oil & gas 0.62 per cent to 7,802.70.
With selling pressure spread widely, the smallcap index fell 1.57 per cent to 3,964.82 and the midcap index by 1.03 per cent to 3,486.93.
On the other hand, the FMCG index gained 0.48 per cent to 2,114.45 and the IT index by 0.26 per cent to 2,427.35.
Corporate results...
Wipro Net Profit Up 4%
Wipro posted a 4% rise in its financial fourth-quarter net profit and forecast a weaker three months ahead for its information technology services.
HCL Technologies Profit Drops
HCL Technologies, among India's top five software exporters by sales, said its consolidated third-quarter net profit fell 36% from a year earlier, dragged by foreign exchange and accounting losses.
ACC Profit Up 23%, Shares Jump
Shares of ACC jumped after it reported a better-than-expected 23% rise in its first-quarter consolidated net profit due to higher sales.
Morgan Stanley Posts Loss
Morgan Stanley swung to a first-quarter loss as results at almost all its business units worsened from a year earlier. The Wall Street giant also cut its quarterly dividend 81%.
Wipro posted a 4% rise in its financial fourth-quarter net profit and forecast a weaker three months ahead for its information technology services.
HCL Technologies Profit Drops
HCL Technologies, among India's top five software exporters by sales, said its consolidated third-quarter net profit fell 36% from a year earlier, dragged by foreign exchange and accounting losses.
ACC Profit Up 23%, Shares Jump
Shares of ACC jumped after it reported a better-than-expected 23% rise in its first-quarter consolidated net profit due to higher sales.
Morgan Stanley Posts Loss
Morgan Stanley swung to a first-quarter loss as results at almost all its business units worsened from a year earlier. The Wall Street giant also cut its quarterly dividend 81%.
Monday, April 20, 2009
Asian markets inch higher ahead of US earnings...
Asian stocks ended higher today as the Chinese premier's upbeat assessment of the world's third-largest economy soothed nerves ahead of key earnings reports from leading U.S. companies.
Thursday, April 16, 2009
Wall Street set for a mixed opening
Wall Street is poised for a mixed opening Thursday after news that JPMorgan Chase & Co.'s first-quarter profit topped analysts' estimates was tempered by word that the big mall operator General Growth Properties Inc. had filed for bankruptcy protection.
The better-than-expected earnings at JPMorgan are further evidence that the banking sector might be stabilizing, coming days after Wells Fargo & Co. and Goldman Sachs Group Inc. also reported profit above analysts' forecasts.
New York-based JPMorgan said its first-quarter profit fell to $2.1 billion, or 40 cents per share, from $2.4 billion, or 67 cents per share, a year ago. The results topped analysts' expectations for earnings of 32 cents per share.
While investors have been rallying in recent weeks on upbeat news out of the financial sector, the market got another dose of reality about where the economy stands as General Growth, the nation's second-largest mall operator, filed for Chapter 11 bankruptcy protection. The company said it was unable to persuade debtholders to give it more time to refinance its debt.
Dow Jones industrial average futures declined 34, or 0.43 percent, to 7,946. Standard & Poor's 500 index futures declined 4.3, or 0.51 percent, to 844.20, while Nasdaq 100 index futures rose 1.75, or 0.13 percent, to 1,318.75.
The market is trying to sustain momentum a day after the market moved higher amid a Federal Reserve report showing glimmers of hope in U.S. business conditions. The Dow gained 109 points.
Investors will get plenty of further earnings and economic data Thursday that should provide more insight into any potential economic recovery.
Earnings are due out for a wide range of companies, including newspaper publisher Gannett Co., paint and wall-covering company Sherwin-Williams Co. and Internet giant Google Inc.
Aside from a new round of earnings reports, two major economic reports will be released that will provide further insight into potential recovery in the economy. The Commerce Department reports about monthly housing starts, while the Labor Department will release weekly jobless claims data.
New jobless claims are expected rise to a seasonally adjusted 655,000 from the previous week's 654,000, according to economists surveyed by Thomson Reuters. Continuing claims are forecast to jump to 5.89 million from 5.84 million, which would be the highest number of claims on records dating back to 1967.
The better-than-expected earnings at JPMorgan are further evidence that the banking sector might be stabilizing, coming days after Wells Fargo & Co. and Goldman Sachs Group Inc. also reported profit above analysts' forecasts.
New York-based JPMorgan said its first-quarter profit fell to $2.1 billion, or 40 cents per share, from $2.4 billion, or 67 cents per share, a year ago. The results topped analysts' expectations for earnings of 32 cents per share.
While investors have been rallying in recent weeks on upbeat news out of the financial sector, the market got another dose of reality about where the economy stands as General Growth, the nation's second-largest mall operator, filed for Chapter 11 bankruptcy protection. The company said it was unable to persuade debtholders to give it more time to refinance its debt.
Dow Jones industrial average futures declined 34, or 0.43 percent, to 7,946. Standard & Poor's 500 index futures declined 4.3, or 0.51 percent, to 844.20, while Nasdaq 100 index futures rose 1.75, or 0.13 percent, to 1,318.75.
The market is trying to sustain momentum a day after the market moved higher amid a Federal Reserve report showing glimmers of hope in U.S. business conditions. The Dow gained 109 points.
Investors will get plenty of further earnings and economic data Thursday that should provide more insight into any potential economic recovery.
Earnings are due out for a wide range of companies, including newspaper publisher Gannett Co., paint and wall-covering company Sherwin-Williams Co. and Internet giant Google Inc.
Aside from a new round of earnings reports, two major economic reports will be released that will provide further insight into potential recovery in the economy. The Commerce Department reports about monthly housing starts, while the Labor Department will release weekly jobless claims data.
New jobless claims are expected rise to a seasonally adjusted 655,000 from the previous week's 654,000, according to economists surveyed by Thomson Reuters. Continuing claims are forecast to jump to 5.89 million from 5.84 million, which would be the highest number of claims on records dating back to 1967.
JPMorgan Chase posts better-than-expected profit
JPMorgan Chase says it earned $2.1 billion, thanks to rising deposits and lower borrowing rates. The profit was 13 percent lower than last year, but better than expected.
Sunday, April 12, 2009
Wkly Technical Analysis: Resistance seen around 11,000
Courtesy: Business Standard
The Sensex ended higher yet again with a gain of nearly 4.5 per cent at 10,804 in a highly volatile week. In the process, the index has now soared 30 per cent (2,478 points) in the last five trading weeks.
Among the index stocks, Jaiprakash Associates was the top gainer with a gain of almost 18 per cent. Tata Steel, Larsen & Toubro, Reliance Infrastructure, Tata Motors, ICICI Bank, DLF, Reliance Communications and HDFC gained in the range of 8-16 per cent.
The target for the current rally remains 12,600 which could be achieved in the next couple of months. In the coming week, the index is likely to face some resistance around the 11,000-mark, and further up at 11,200. The 11,000-mark is R3 (Resistance 3 or 0.62 per cent retracement of the February range) on the monthly charts, and 11,200 is R3 on the quarterly charts.
Since, the rally has been so sharp and the 14-day RSI (Relative Strength Index) continues to remain in the overbought zone, profit taking or a sharp retracement in coming days cannot be ruled out.
The chances of a pull back or some profit taking before the index hits 12,600 are high. Going forward, factors such as general election, corporate results and global markets will weigh heavy on the market sentiment. Hence, the volatility is likely to remain high.
The base for the current rally is 9,650-9,710. Only consecutive close below these levels would change the trend back to the negative zone.
The NSE Nifty moved in a range of 252 points, from a low of 3,149, the index moved to a high of 3,401, and finally ended with a gain of 4 per cent at 3,342.
This week, the index is likely to test its 200-DMA (simple daily moving average) at 3,437. The index may face some resistance around these levels before continuing its upward journey. Above this, the Nifty is likely to rally to 3,470-3,500.
However, in case of a downside, the index is likely to find support around 3,245-3,185. Once 3,185 is breached, the index may see a steep fall towards the 3,000-mark.
Wednesday, April 8, 2009
Bulls win again, Sensex gains over 207pts after negative start...
Index has rallied over 12% in five trading days; Realty and FMCG stocks shone today
Monday, April 6, 2009
What The Past Teaches...
Courtesy: The Wall Street Journal
This bear market has been a painful experience for many, but a new experience only for some.
Veteran fund managers in the US vividly remember the 1973-74 market slide -- the worst downturn since the Great Depression, until now. Seasoned fund-company executives, too, have seen this kind of trouble before.
Stocks have a long way to go to climb out of this bear market, in which the Dow Jones Industrial Average fell as much as 54% from its October 2007 high. But the market climbed back from its 45% drubbing in 1973-74.
Some investors thought they saw promising signs last month, when the Dow gained 21% in just 13 trading days after hitting a new low on March 9. The average diversified U.S.-stock fund was down 9.1% during the first quarter, after gaining 8.4% in March, according to figures from Lipper Inc.
In the '70s bear market, things "just looked hopeless," recalls Mr. Harry "Hersh" Cohen, 68 years old, Chief Investment Officer of ClearBridge Advisors, an affiliate of Legg Mason Inc. Mr. Cohen has been a money manager since 1969. In 1973-74 soaring energy prices and inflation, war and political turmoil added up to two years of unforgettable gloom. But recovery did come, as it has after each slump since.
This bear market has been a painful experience for many, but a new experience only for some.
Veteran fund managers in the US vividly remember the 1973-74 market slide -- the worst downturn since the Great Depression, until now. Seasoned fund-company executives, too, have seen this kind of trouble before.
Stocks have a long way to go to climb out of this bear market, in which the Dow Jones Industrial Average fell as much as 54% from its October 2007 high. But the market climbed back from its 45% drubbing in 1973-74.
Some investors thought they saw promising signs last month, when the Dow gained 21% in just 13 trading days after hitting a new low on March 9. The average diversified U.S.-stock fund was down 9.1% during the first quarter, after gaining 8.4% in March, according to figures from Lipper Inc.
In the '70s bear market, things "just looked hopeless," recalls Mr. Harry "Hersh" Cohen, 68 years old, Chief Investment Officer of ClearBridge Advisors, an affiliate of Legg Mason Inc. Mr. Cohen has been a money manager since 1969. In 1973-74 soaring energy prices and inflation, war and political turmoil added up to two years of unforgettable gloom. But recovery did come, as it has after each slump since.
Fourth straight gain for Sensex; M&M zooms 14%
The Sensex opened with yet another positive gap of 173 points at 10,522 on the back of positive global cues. The index soon touched a high of 10,655 owing to smart gains by index heavyweights.
Intra-day profit taking saw the index pare gains and touch a low of 10,410 - down 245 points from the day's high. The Sensex finally ended with gain of 186 points at 10,535.
In the process, the index has now soared over 10% (967 points) in the last four straight trading days.
The BSE Consumer Durables index zoomed nearly 6% to 1,817. The Capital Goods, Metal and Auto indexes surged nearly 4% each to 7,062, 6,451 and 3,281, respectively.
The market breadth was fairly positive - out of 2,567 stocks traded, 1,859 advanced, 633 declined and 75 were unchanged.
INDEX MOVERS...
Mahindra & Mahindra (M&M) zoomed over 14% to Rs 480. Reliance Communicatons soared over 11% to Rs 218.
Larsen & Toubro and HDFC surged around 7.5% each to Rs 770 and Rs 1,699, respectively.
Reliance Infrastructure and Hindalco rallied around 6.5% each to Rs 613 and Rs 60, respectively.
Tata Steel gained nearly 5% at Rs 236. ICICI Bank added 4% to Rs 375.
Sterlite and Bharti Airtel moved up around 3.5% each to Rs 386 and Rs 660, respectively.
DLF and Tata Motors were up 3% each at Rs 210 and Rs 209, respectively.
...AND THE SHAKERS
ACC plunged over 3% to Rs 581. ITC and Ranbaxy dropped around 2.5% each to Rs 181 and Rs 182, respectively.
Grasim slipped over 2% to Rs 1,567. Hindustan Unilever and SBI declined around 1.5% each to Rs 227 and Rs 1,129, respectively.
OTHER PROMINENT GAINERS...
Essar Oil zoomed over 48% to Rs 119. MRPL, Chennai Petro, EIH, Rei Agro, Jai Corp, Glenmark Pharma, Adani Enterprise, Bharat Forge, Suzlon, Tech Mahindra, Mundra Port, Rolta, Kotak Bank, Videocon and HDIL soared 9-19% each.
...AND THE LOSERS
G E Shipping dropped nearly 5% to Rs 188. Lupin, United Spirits, Century Textiles, HPCL, Renuka Sugars, Divi's Labs, MphasiS, Power Finance, Apollo Hospital, M&M Financial, Ambuja Cement, Crompton Greaves, Colgate, Asian Paints and Cipla declined 2-4% each.
VALUE & VOLUME TOPPERS
Reliance Infrastructure topped the value chart with a turnover of Rs 281.15 crore followed by Reliance (Rs 242.25 crore), Reliance Capital (Rs 163.75 crore), ICICI Bank (Rs 158.40 crore) and Essar Oil (Rs 144.25 crore).
Satyam led the volume chart with trades of around 2.85 crore shares followed by Suzlon (2.25 crore), Reliance Natural Resources (2.02 crore), Cals Refineries (1.39 crore) and Essar Oil (1.33 crore).
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