Indian Weekly Market Update September 11 2009
An increase in consumer confidence along with the rise in industrial output across key economies reversed the emerging bearish trends of last week as major indices made considerable gains for the week ended September 11, 2009. The preliminary index of consumer sentiment in the US rose to 70.2 in September from 65.7 in August while inventories at US wholesalers fell for a eleventh straight month in July, declining 1.4 percent indicating a possible recovery in the country’s manufacturing sector. Furthermore, the initial jobless claims fell by 26,000 to 550,000 for the week ended September 5. In the UK too, manufacturing activity increased 0.9 percent in July (month-on-month) boosted by auto and pharmaceutical sectors. Consequently, these developments kept the investors bullish and the Dow Jones Industrial Average (DJIA) and FTSE 100 gained 1.74 percent and 3.29 percent, respectively, for the week ended September 11.
The Asian markets closed on an optimistic note as all the seven major indices made gains for the week ended September 11. Shanghai SE composite, China’s benchmark index (up 4.48 percent), was the best performer, backed by an unexpected increase in new lending and Industrial production during August. India’s benchmark index, the BSE Sensex gained 3.67 percent during the week on strong regional cues and gain in metal stocks due to rise in metal prices and positive industrial production data.
The Rupee appreciated 0.83 percent during the week as foreign institutional investors (FII) remained net buyers. Crude oil prices increased 1.9 percent to US$69.29 per barrel as the Dollar fell to a nine-month low.
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