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Stock Market Update

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DQI Bureau
New Update

Highlights

of market movements during the fortnight:




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  • Markets

    commence trading on a weak note. The Sensex plunges 174 points

    on the first day.



  • Sensex

    leaps 221 points on the second day registering one of its highest

    gains on a single trading day.



  • FII's

    turn net buyers-worth Rs824.70 crore.



The

undercurrent remained bearish in the markets though the Sensex posted

a marginal gain of 3% over its previous level to close at 4586.

The wave of overconfidence that had swiped the markets immediately

after the polls has subsided. The stock markets are currently witnessing

a phase of non-activity. However, with the return of FIIs, the market

seems to have gained momentum.



Keeping

in line with the capital market reforms process, the Securities

and Exchange Board of India (SEBI) has decided to replace the current

settlement by introducing Rolling Settlement-settlements on a daily

basis. However, it seems unlikely to happen soon as the committee

that was appointed by SEBI to study the new settlement system is

yet to submit its report. If introduced, the stock markets are going

to wear a totally different look with settlements taking place on

a daily basis. One of the major effects of the new settlement system

would be a reduction in the speculative activity as the traders

would have to square up their positions on a daily basis as opposed

to a period of five days in the current settlement system. The new

system was originally proposed to be implemented from December 1999.



One

of the striking features of IT companies this year has been an excellent

financial performance in the first half of the current year irrespective

of their performance in the stock markets. Pentafour Software and

Exports, the Chennai-based multimedia major announced an impressive

financial performance for the first half of the current year posting

a 65% increase in net profit. Secunderabad-based Satyam Computer

Services announced its plans to enter into a 50:50 JV with US-based

Venture Industries to provide engineering services, software development,

and engineering and customization services to the global automotive

industry. The company has recorded an impressive financial performance

in the second quarter of the current year with a 67% increase in

net profit, which stood at Rs30.74 crore. The turnover and net profit

in the first half of the current year has risen by 72% and 68%,

respectively. Satyam's share touched Rs1681, rising by 32% in the

past two weeks.

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