India's Sensex to end FY10 with biggest gains in 25 years
By Kumar Shankar Roy Mar 28 2010 , Kolkata
With just three more trading days to go in this financial year, India’s benchmark BSE Sensex has added 7,936 points to 17,644.76 in 2009-10. The 30-share index closed at 9,708.50 on March 21, 2009, but bulls have more than one reason to cheer with Sensex notching one of the best performances in the past 25 fiscal years since it was compiled.
The gains are sweeter for bulls as the index had lost 5,935.94 points in 2008-09, when the it slumped from 15,644.44 points to 9,708.50 as the global economy, led by the US, succumbed to housing bubbles and credit crisis.
Tata Motors (315.8 per cent), Hindalco (243.4 per cent), Tata Steel (212.4 per cent), TCS (205.7 per cent), Wipro (192.1 per cent), ICICI Bank (184.9 per cent) and M&M (181.2 per cent) are the top performers in Sensex in 2009-10.
The best percentage gain was in 1991-92 when it rose from 1,167.97 points to 4,285, a rally of 266.88 per cent or 3,117.03 points. Since the Union budget and third-quarter earnings did ’t lead to earnings upgrades, experts feel fourth-quarter earnings hold the key.
“Based on consensus estimates for FY10 and the nine-month performance of Sensex companies, the implied fourth-quarter bottom-line growth comes in at 13 per cent year on year. This mean that markets are expecting earnings growth momentum to moderate compared with the 16 per cent year-on-year growth in the third quarter,” said Gaurav Dua, head of research at Sharekhan, a retail brokerage.
(With inputs from Amit Mudgill in New Delhi)
_______________________________________________________
If you take anything I say as advice, you're crazier than I am.
