BOMBAY, 31 October 2004 — The Indian stock markets this week had a bout of ups and downs. The rising international oil prices in the beginning of the week and then the subsequent fall in the oil prices, dictated the swings on the bourses.
On Monday, selling pressure continued in blue chips after the weakness in the last couple of sessions. The BSE shed 59.57 points to end at 5,581.49. There was widespread fear that the soaring oil prices might hurt the economy. Even strong quarterly results from frontline companies like Reliance Industries, L & T and HDFC failed to lift sentiment.
Reliance Industries was down despite impressive Q2 results.
HDFC traded lower even after the company announced improved quarterly results.
On Tuesday, buying resumed in stocks after the Reserve Bank of India (RBI) left the bank rate unchanged. The BSE ended with a solid gain of 69.60 points at 5,651.09.
Announcing its review of the monetary policy, the RBI left the Bank Rate unchanged at 6 percent, the lowest it has been in three decades. Yet, the central bank raised the overnight benchmark repo rate by 25 basis points to 4.75 percent, citing concerns about a rise in inflation. RBI lowered GDP forecast for the current year. The RBI has forecast that GDP would grow 6.0-6.5 percent in FY 2005, revising downward a previous forecast for 6.5-7.0 percent growth.
On Wednesday, gains in select cement, automobile and pharma blue chips managed to offset losses in heavyweights. The BSE closed out with a small gain of 11.78 points at 5,662.87. Maruti was amongst the top traded stocks when for Q2, the country’s top passenger carmaker posted a 48.07 percent rise in net profit to Rs.183.60 crore.
On Thursday, sentiments remained following a sharp decline in international crude oil prices. After moving in a narrow range of 39 points, the BSE settled at 5,716, up 53 points.
On Friday, there was selling on the bourses, mainly in metal stocks as fears arose of a slowdown in Chinese demand after China decided to raise interest rates. The BSE ended with a loss of 43.35 points 5,672.27.
Gold was at Rs.6,400/- per 10 gms and silver was at Rs.11,495/- per kg.
US dollar against Indian rupee was at Rs.45.54, pound sterling at Rs.83.06, euro at Rs.56.02, UAE dirham at Rs.12.51, Kuwait dinar at Rs.153.13, Bahrain dinar at Rs.120.89, Saudi riyal at Rs.12.25, Qatar riyal at Rs.12.62 and Oman riyal at Rs.119.04.
