Indian shares rise 47 pct in 2006
MUMBAI (Reuters) - Indian shares slipped 0.4 percent on the day on Friday but still ended the year up nearly 47 percent, clocking their fifth straight year of gains on strong institutional inflows and robust economic growth.
Notable blue-chip winners in 2006 included cement maker ACC Ltd. and diversified Grasim Industries which rose more than 100 percent, while top private firm Reliance Industries Ltd. gained nearly 89 percent over the year.
Fund managers and analysts expect the benchmark index to rise further in 2007, with expected returns of 5-15 percent as corporate earnings growth continues.
"The call would remain bullish, but the expectations of returns should be toned down a bit," said Sandeepa Vig Arora, vice-president at brokerage firm Indiainfoline Ltd.
Foreign funds, which have played a crucial role in powering the market to record highs, bought nearly $7.9 billion worth of Indian equities in the year, following inflows of $10.7 billion in 2005.
"Money would chase earnings growth and will largely be in capital goods, IT and consumer goods," Ved Prakash Chaturvedi, managing director at Tata Mutual Fund said.
Concerns of rich valuations and tightening monetary policy to curb inflation pressures have led to short-term corrections and analysts said the benchmark BSE index lost steam as it neared its latest record of 14,035.30 points set on Dec. 6.
The 30-share index closed 59.43 points lower on the day at 13,786.91 points on Friday, while the 50-issue S&P CNX Nifty lost 0.1 percent to end at 3,966.40.
The market is closed on Monday for a national holiday.
Only nine blue-chips ended the day in positive territory amid low volumes but in the broader market gainers edged ahead of losers on volume of 201.6 million shares.
"There was lack of buying interest in the large-caps ahead of a long weekend. But some mid-caps have done well," said Gajendra Nagpal, director at Delhi-based Unicorn Investments.
Elsewhere in the region, Colombo's All-Share index slid 0.65 percent to 2,722.36 points. The index gained nearly 42 percent in 2006.
Karachi's 100-share index slipped 0.18 percent to close at 10,040.50 points. It has gained more than 5 percent in 2006.
STOCKS THAT MOVED
* Reliance Communications Ltd. fell 1.2 percent to 471.30 rupees a day after its chairman Anil Ambani said he was interested in smaller mobile phone operator Hutch Essar.
* Copper pipes and tubes maker Nissan Copper Ltd. closed at 128.80 rupees after making its debut at 42.80 rupees.
* Eicher Ltd. fell 4.7 percent to 176.95 rupees after parent Eicher Goodearth offered to buy 25.16 percent public shareholding in the company at a floor price of 150 rupees a share and delist the company.
* Speciality chemicals maker Clariant Chemicals (India) Ltd. rose 4 percent to 337.15 rupees on block share deals.
TOP THREE BY VOLUME
* Nissan Copper Ltd. on 61.1 million shares.
* LML Ltd. on 4.9 million shares.
* IFCI Ltd. on 4.6 million shares.
Notable blue-chip winners in 2006 included cement maker ACC Ltd. and diversified Grasim Industries which rose more than 100 percent, while top private firm Reliance Industries Ltd. gained nearly 89 percent over the year.
Fund managers and analysts expect the benchmark index to rise further in 2007, with expected returns of 5-15 percent as corporate earnings growth continues.
"The call would remain bullish, but the expectations of returns should be toned down a bit," said Sandeepa Vig Arora, vice-president at brokerage firm Indiainfoline Ltd.
Foreign funds, which have played a crucial role in powering the market to record highs, bought nearly $7.9 billion worth of Indian equities in the year, following inflows of $10.7 billion in 2005.
"Money would chase earnings growth and will largely be in capital goods, IT and consumer goods," Ved Prakash Chaturvedi, managing director at Tata Mutual Fund said.
Concerns of rich valuations and tightening monetary policy to curb inflation pressures have led to short-term corrections and analysts said the benchmark BSE index lost steam as it neared its latest record of 14,035.30 points set on Dec. 6.
The 30-share index closed 59.43 points lower on the day at 13,786.91 points on Friday, while the 50-issue S&P CNX Nifty lost 0.1 percent to end at 3,966.40.
The market is closed on Monday for a national holiday.
Only nine blue-chips ended the day in positive territory amid low volumes but in the broader market gainers edged ahead of losers on volume of 201.6 million shares.
"There was lack of buying interest in the large-caps ahead of a long weekend. But some mid-caps have done well," said Gajendra Nagpal, director at Delhi-based Unicorn Investments.
Elsewhere in the region, Colombo's All-Share index slid 0.65 percent to 2,722.36 points. The index gained nearly 42 percent in 2006.
Karachi's 100-share index slipped 0.18 percent to close at 10,040.50 points. It has gained more than 5 percent in 2006.
STOCKS THAT MOVED
* Reliance Communications Ltd. fell 1.2 percent to 471.30 rupees a day after its chairman Anil Ambani said he was interested in smaller mobile phone operator Hutch Essar.
* Copper pipes and tubes maker Nissan Copper Ltd. closed at 128.80 rupees after making its debut at 42.80 rupees.
* Eicher Ltd. fell 4.7 percent to 176.95 rupees after parent Eicher Goodearth offered to buy 25.16 percent public shareholding in the company at a floor price of 150 rupees a share and delist the company.
* Speciality chemicals maker Clariant Chemicals (India) Ltd. rose 4 percent to 337.15 rupees on block share deals.
TOP THREE BY VOLUME
* Nissan Copper Ltd. on 61.1 million shares.
* LML Ltd. on 4.9 million shares.
* IFCI Ltd. on 4.6 million shares.
Source : Reuters
posted by anandsonline @ Sunday, December 31, 2006
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