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The last week was another good one for the Indian markets with the benchmark BSE Sensitive Index (Sensex) closing higher by 170 points to 10756.16. The rally was again led by capital goods sector, power and transmission companies as well as construction companies with close support from the cement sector which is justified by the tremendous growth potential in these sectors. There was a sharp dip in the early part of the week when the index fell by almost 200 points on back of some selling by Foreign Institutional Investors (FII s), but the markets showed remarkable resilience by bouncing back the very next day itself and sustaining the rally to close the week with substantial gains. The surprise performance was from the Software and Technology pack which had been under performing for the last three months. The major software companies like Tata Consultancy Services (www.tcs.com) , Infosys Technologies (www.infosys.com Nasdaq symbol : INFY), Satyam Computer Services (www.satyam.com NYSE symbol: SAY), Wipro ( www.wipro.com NYSE symbol : WIT) showed substantial strength with Tata Consultancy and Satyam showing comparatively greater momentum and therefore have been included in our new trading call for the week. This sector has tremendous growth potential as Western companies especially US based ones can save huge costs through Business Process Outsourcing. The Indian Financial Markets have evolved tremendously over the past ten years. We are proud to say that the two major stock exchanges The Bombay Stock Exchange (www.bseindia.com) and The National Stock Exchange (www.nseindia.com) are at par with the best exchanges of the world. We now have two of the most transparent order driven exchanges of the world with a fully developed and vibrant futures and options market. In fact National Stock Exchange's Nifty Index futures are also actively traded on the Singapore Stock Exchange. Along with the equity markets we have two dynamic commodity exchanges - The National Commodity and Derivative Exchange (www.ncdex.com) which is strong in agro based commodities and The Multi Commodity Exchange of India (www.mcxindia.com) which is more strong in precious metals.
In short investors in India can look forward to fantastic opportunities for diversification of assets out of dollar based investments. India because of its young demographic profile and democratic rule of law in place offers far superior risk reward ratio amongst most emerging markets.
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INFORMATION The opinions of FSU contributors do not necessarily reflect those of Financial Sense. |
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