The Week That Was:- 8th Nov - 14th Nov
Sunday, November 15, 2009 , Posted by Team Niveshak at Sunday, November 15, 2009
Market Watch
After a sudden collapse on the stock exchange, last week saw Sensex rise by 690.55 points, or 4.27 per cent, at 16,848.83 compared to the previous week, while the Nifty closed at 4,998.95, up 202.80 points, or 4.23 per cent. Nifty could not touch the 5000 mark. This rise could be attributed to the increase in global markets and government’s reform initiatives. Also, the robust growth data lifted the spirits of steel and auto sectors. This increase was the best weekly gain in 11 weeks.
States speak about GST
The much awaited discussion paper on GST was released on November 10 communicating the proposed framework in India. The paper also discusses about administrative and threshold aspects. It was a broad consensus among the various states on GST. The final law would be passed by the central government. The two-tier structure was proposed to enjoy concessional rates for some goods by states, though it would raise the GST rate.
L&T strengthens Power sector, reduces stake in Satyam
The last two weeks has seen two major acquisitions by L&T driving company’s growth in thermal and nuclear power sector. Immediately after bagging the Rs 6897 crore order from Mahgenco- Maharashtra for 3 supercritical Boiler – Steam Turbine Generator Package of 660 MW capacity, L&T entered into yet another deal with Madhya Pradesh Power Generation Co. Ltd. (MPPGCL) on turnkey basis. This Rs 1635.30 crore Balance of Plant (BoP) contract was signed for two Coal fired plants of 600 MW each. L&T faced a tough competition from domestic BoP bidders for this project.
On the other hand, L&T plans to sell one-third of its 6.9% stake in Mahindra Satyam fetching them around Rs 304 crores. It is accounted as a strategic move to book profits as the markets recover.
Inflation surges to 1.34% in October
The new monthly index launched on 14th November, declared a 0.50% increase in the WPI-based inflation to 1.34% in October. Though the fruits and vegetables became cheaper by 11%, still the heightened prices of a few commodities including wheat and rice in the previous month highly affected the inflation. The fuel and power category also rose by 0.1 per cent during October, mainly due to higher prices of furnace oil (3 per cent) and bitumin (1 per cent).
