Hi
I'm sure everyone must be suprised by the sudden gains by sensex, a movement of 768 points in 2 days...was it really suprising?
Not really, Thursday's movement mainly depended on Infosys results. The movement was on expectectation before the results, and the rally was the result of positive results by Infosys (a total movement of 365 points in the day).
Well, this was understandable knowing that the results of a heavyweight was due, but what lead to the rally on friday???
The answer...
CURRENT AFFAIRS
On thursday evening (Thursday morning in the US), Bush anounced it's new policy for Iraq. After a delayed announcement, analysts were expecting a more diplomatic solution to solve the crisis in Iraq other than to intensify military operations by sending 21,000 additional troops, which was opposed intensely by Republican Senator Chuck Hagel and Secretary of State Condoleezza Rice. This caused worries to investors globally because this would eventually lead to a fall in the dollar value (which is what exactly happenned). Also, an attack on the US embassy in Athens on Friday was assumed to be a terror attack in response to Bush's new Iraq policy thus fuelling the fire.
FUNDAMENTAL
India is the world's fastest growing major economy after China. Industrial output in November jumped 14.4 per cent from a year earlier, rebounding from a holiday-hit downward revised 4.4 per cent annual rise in October. It was the fastest growth in 11 years and was just below China's 14.9 per cent production rise in November.
The focus will be on software services companies Tata Consultancy Services, which unveils results today, followed by Wipro on Wednesday and Satyam Computer Services on Friday.
Shares in Nestle India will be in the spotlight as its board meets on Monday to consider how to reward shareholders with its cash reserves.
Big results due this week include Bajaj Auto on Tuesday, followed by Reliance Industries, Ranbaxy Laboratories and Siemens on Thursday.
Jai Shewaramani
