Indian Weekly Market Update June 12 2009
Global economies exhibited signs of recovery in recent weeks, as evidenced in the rally in stock markets across the globe since March 2009. The positive sentiment palpable in recent months manifested during the week ended June 12, 2009, with all leading macroeconomic indicators rising. U.S. retail sales rose 0.5 percent in May, the first such rise in three months. Meanwhile, new jobless claims declined steadily reflecting the gradual improvement in economic growth. The Dow Jones Industrial Average (DJIA) and FTSE100 gained 0.41 percent and 0.08 percent, respectively, during the week ended June 12, 2009.
Asian economies displayed mixed trends during the week, with four of the seven indices ending in the green. Japan’s benchmark Nikkei 225 index (up 3.77 percent) led the pack of gainers on better-than-expected GDP growth. India’s benchmark index, BSE Sensex, gained 0.89 percent on improved industrial production and the government’s optimism with regard to strong economic growth.
The rupee depreciated 1.07 percent during the week as demand for the dollar increased in tandem with expected economic recovery. Crude oil prices rose 5.3 percent to close at US$72.04 per barrel after increasing 3.2 percent the previous week. The anticipated economic recovery triggered a flare-up in crude oil prices.
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