BOMBAY, 25 July 2004 — The Indian stock markets were in a jubilant mood this week following the revision of the transaction tax by the finance minister. Despite the delay in monsoons, the market also celebrated the encouraging deluge of corporate results for the first quarter of 2004-05.
On Monday, the BSE rose amid hopes of a favorable change in the proposed turnover tax. After a volatile session of trading, the BSE ended at 4,975.40, up 24.23 points.
Tech stocks, Infosys, Satyam Computer and Wipro were down throughout the day, in the run-up to initial public offering of Tata Consultancy Services (TCS). TCS has set a price band of Rs.775-Rs.900 a share for the proposed IPO which opens on July 29. It is feared that the traders may sell other stocks to accommodate the TCS issue.
On Tuesday, profit-taking in blue chips as well as mid-cap stocks led to a fall in the Sensex. The mood on the market appeared cautious amid hopes of favorable change in the turnover tax proposal. The BSE ended the day with a loss of 17.52 points at 4,957.88.
On Wednesday, the mood was lackluster all through the day but once the much awaited announcement came from the finance minister toward the fag end of the day, the indices soared as much as 83.31 points to a high of 5,041.19. It finally closed the day at 4,993.76, recording a gain of 35.88 points.
On Thursday, the market was in a jubilant mood. Revision in the transaction tax and impressive quarterly results from different companies boosted market sentiment. The BSE Sensex ended higher at 5,054.29, up 60.53 points.
On Friday, the market was fairly flat though selective buying in blue chips helped the market to end with a gain of 19.05 points at 5,073.34. Strong quarterly results and relaxation in the turnover tax proposal also boosted market sentiment.
Gainers at 270 outpaced losers at 218.
For the coming week, investors say the sharp reduction in transaction tax would lead to a further short-term rally in the market and it is expected to remain buoyant.
Gold was at Rs.6,130/- per 10 gms and silver was at Rs. 10,415/- per kg.
US dollar against Indian rupee was at Rs.46.32, pound sterling at Rs.85.48, euro at Rs.56.29, UAE dirham at Rs.12.58, Kuwait dinar at Rs.153.87, Bahrain dinar at Rs.120.84, Saudi riyal at Rs.12.31, Qatar riyal at Rs.12.68 and Oman riyal at Rs.118.36.