BOMBAY, 3 August 2003 — The Indian stock markets had a good week. Underlying sentiment was firm thanks to the good earnings reported so far, positive outlooks and continuing foreign fund inflows.

On Monday, though the stocks began trading on a strong note, selling in Old Economy stocks toward the end pared the gains. Nevertheless, the BSE ended the day with a gain of 13.30 points at 3,739.76.

Hindustan Zinc touched a new 52-week high when for the quarter ended June 30, 2003 (Q1) it posted a whopping 220 percent rise in net profit.

On Tuesday, after remaining subdued for the first half of the trading session, bargain buying by funds and short covering in stocks before expiry of June futures on Thursday prompted a smart recovery in the markets in mid afternoon trades. The BSE settled at a new 28-month high of 3,764.44 gaining 24.68 points. M&M staged a smart recovery following huge buying support from operators on the back of reports that the company will acquire Valtra, a Finnish tractor firm.

Zee Telefilms declined as the company’s Q1 results fell on the lower side of analysts’ expectations.

On Wednesday, there was a “Bandh” called in Bombay and the city came to a virtual standstill. Yet unmindful of this fact, thanks to online trading now, the market simply ignored the fact that it was expected to stay subdued. It went about business as usual, and ended the day with a gain of 15.98 points up at 3,780.42. It was another day of big results. Tata Telecom’ net was up 184 percent for Q1 and IDBI’s net was up 36 percent. Bombay Dyeing dampened the moods when it reported a 81 percent fall in its Q1 net. Telecom and Internet services provider Videsh Sanchar Nigam (VSNL) net profit nose-dived to 658 million for Q1 compared with Rs.2,612 million in the previous Q1.

Thursday was a day of “big” results. It was a day of volatile trading on the BSE as select blue-chip stocks witnessed strong resistance after initial upsurge. It ended the day with a gain of 12.19 points at 3,792.61. Foreign Institutional Investors (FIIs) were believed to be net buyers in select cement and auto shares.

On Friday, technology and cement stocks led the rally on the bourses. It was a milestone day of trading on the BSE as it managed to close over the 3,800-mark for the first time since March 9, 2001. Recording its eighth straight rise, the BSE was up 22.70 points, ending the week at 3,815.31.

For the coming week also the Indian markets are expected to remain optimistic though some amount of profit-taking at higher levels is not ruled out.