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Global markets back in green after a fortnight of turmoil

August 22nd, 2011

Stock markets around the globe took a relief after an almost a fortnight of turmoil due to global economic factors turning sour. The stock markets right from Asia Pacific to US have closed in the green albeit the relief is too small and too early to call it a U-turn.

The BSE Sensex closed the day at 16341.70 gaining 200.03 while Nifty closed the day at 4898.80 gaining 53.15 points in trades today. Almost all sectoral indices except for the Bankex and BSE IT have closed in the green. IT stock, some experts believe, have still some downside left considering there is no clear signs of order pull backs from US companies. Banks, of course, have their inherent problems and their stocks are showing the signs.

Top gainers include ADAG stocks Reliance Comm, Reliance Infra and SAIL (all three up over 6%), IDFC and Jaiprakash Asso (both up 5%) and ONGC, Bajaj Auto, Wipro, Rel Capital, Tata Power, Hindalco, Tata Motors, Reliance and Jindal Steel (all up over 3%). Market experts believe the upward pull back by Reliance Communications and Reliance Infra is largely because of short covering and that the inherent problems in ADAG stocks still are to be addressed so as to win investor confidence and hence the upward move is short term knee jerk reaction.

Top losers of the day include GAIL (down over 3%), DLF (down over 2%) and Axis Bank, HDFC Bank, Infosys, HCL Tech, TCS, PNB, Sesa Goa and Cairn India (all down 1%).

Gold touched a new record high of $1,912.09 an ounce.

The Indian Income Tax Department has served a draft tax demand of Rs 2,114 crore on Mahindra Satyam (BSE: 500376; NSE: SATYAMCOMP; ISIN: INE275A01028) after it has disallowed exemptions claimed by the company. The demand was for Rs 1,037.69 crore and Rs 1,075.73 crore for assessment years 2002-03 and 2007-08, respectively. The company said that the notice however does not exclude fictitious income wrongly offered to tax by the earlier management and hence the company is likely to challenge the same.

GVK Power and Infrastructure (BSE: 532708; NSE: GVKPIL; ISIN: INE251H01024) has increased its stake in Bangalore International Airport Ltd (BIAL) by acquiring an additional 14% share from Siemens Project Ventures. With this, the total stake of GVKPIL in BIAL increases to 43%. It may be recalled GVK, in 2009, had acquired 17% stake from Larsen and Toubro (L&T) for Rs 686 crore and 12% from Zurich Airport for Rs 484.6 crore. The script last traded at 17.40 up 0.30 or 1.75%.

SEBI has notifies its decision of transaction charges on Mutual Fund folios. There will be a charge of Rs 100 per subscription of over Rs 10,000 and charge of Rs 150 for a first time MF investor.

Entry Filed under: Equity Markets, Mutual Funds, IT & ITes, Closing Bell, Infrastructure