BOMBAY, 18 July 2004 — The Indian stock markets this week were back to looking skyward, hoping that the monsoons in India will not play spoil sport. The market swung to the tunes of the weather bureau. The encouraging results from Infosys Technologies gave the marker enough reason to cheer for though the grouse over transaction tax continued to dog.
On Monday, the market ended flat with extremely lackluster trading session. The BSE ended the day with a marginal loss of 0.94 points at 4,944.54. Traders and jobbers stayed away from the market protesting the finance minister’s proposal to replace long-term capital gains tax with transaction tax.
On Tuesday, the market ended sharply lower amid worries about a deficient monsoon in the country. Old Economy led the fall. Tech stocks were high following impressive quarterly results announced by Infosys. The BSE ended with a loss of 45.55 points at 4,898.99.
On Wednesday, heavy selling took precedence as investors worry about the erring monsoon continued. There was selling almost across the board, except for some IT stocks. The BSE ended with a loss of 50.69 points at 4,848.30.
According to the Indian Meteorological Department reports, while the monsoons have been below average as yet, their distribution has also been uneven, affecting crops in various regions. A normal monsoon is crucial for the economy to grow over 7 percent targeted rate.
The market finally looked upward on Thursday as now reports have come in that the monsoons might improve hereafter. Buying was seen in blue chips and mid-cap stocks.The BSE ended with a modest gain of 39.89 points at 4,888.19.
On Friday, buying interest in heavyweights, steel, banking and cement stocks helped boost the indices. The BSE ended the day with a gain of 62.98 points at 4,951.17.
For the coming week, monsoons and deluge of first quarter corporate results are expected to decide on the course of the market.
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.46.37, pound sterling at Rs.85.47, euro at Rs.56.69, UAE dirham at Rs.12.51, Kuwait dinar at Rs.153.07, Bahrain dinar at Rs. 120.84, Saudi riyal at Rs.12.24, Qatar riyal at Rs.12.61 and Oman riyal at Rs.117.74.
