Banking on good news - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Banking on good news

Dec 14, 2002

The benchmark indices saw over 1% improvement this week on the back of some clarity on disinvestment, indications of lower interest regime continuing, passing of the cable bill and announcement by FM that housing benefits will continue. However, the key change was an overall positive sentiment towards the banking sector. The week saw hectic activity in software, PSUs and banks. News of Infosys upping its recruitment led to speculation of good BPO prospects for the company. Also, MsourceE (Mphasiss call centre subsidiary) signed up with Accenture, a global software services consultancy, as the most preferred execution partner for BPO. This led to some strength in the sector. But towards the end of the week, NASDAQ blues seemed to have hit sentiment.

After announcing intentions of strategic divestment of HPCL and an IPO for BPCL, the privatisation programme received a boost with the stake sale of Engineers India was cleared. Consequently, one saw renewed faith in PSU counters. Even other PSUs like Gail and ONGC, which were not concerned with divestment, gained on the hopes of participating in HPCLs divestment.

But perhaps the sector of the week crown should go to the banking sector. The week saw a flood of positives. With news percolating from every corner on how banks, both public and private, are getting their act together to recover their NPAs and ruling by the courts against a particular defaulter, investor enthusiasm was evident. The FMs comment on reducing interest rates further aided this positivism. To top of it all, the market was flooded with news/rumours of merger moves and strategic sales by different banks. At the weekend, the FM provided another shot in the arm for the sector by indicating that housing sops will continue.

With the passing of the cable bill, one also saw hectic activity in the media counters as well. Auto stocks saw a volatile week, while FMCG counters were largely range bound. With the CMIE indicating a slowdown in the second half of current fiscal, demand prospects seem challenging for India Inc. However, the bourses seem to have come out of their pessimistic mood in the hope that 2003 will be a better year for investors.

Equitymaster requests your view! Post a comment on "Banking on good news". Click here!


More Views on News

The Top 6 Artificial Intelligence Plays in India (Views On News)

Dec 6, 2021

Investors looking to tap into AI theme need to keep an eye on tech firm leveraging the power of AI are making things possible.

6 Penny Stocks that Rallied 1,000%+ in One Year (Views On News)

Dec 6, 2021

These penny stocks shed their penny status by surging 1,000% or more in the last one year.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

6 Indian Companies Betting Big on Renewal Energy (Views On News)

Dec 7, 2021

Here's the list of companies pouring in the big bucks to push India's sustainable energy industry to the next level.

Is it a Good Time to Trade OMC Stocks? (Fast Profits Daily)

Dec 7, 2021

This is how you should think about trading OMC stocks.

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

India's Top 5 Monopoly Stocks to Watch Out for (Views On News)

Nov 30, 2021

These 5 companies dominate their sectors with a huge piece of the pie.

The Biggest Winners and Losers in India's Transition to Electric Vehicles (Profit Hunter)

Nov 26, 2021

How India's EV transition could be a major headwind for the incumbents.


Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Dec 7, 2021 (Close)