New week, same old story! The benchmark indices flattered to deceive on yet another occasion today. They were perched well above the dotted line few minutes before the closing day. Then came the final few minutes and they nosedived yet again, ending the day only marginally in the positive.
Thus, the BSE-Sensex closed with gains of around 30 points whereas the NSE-Nifty closed almost flat. BSE Midcap and BSE Small cap indices took some beating today, closing lower by 0.5% and 0.8% respectively. More than three stocks gained for every stock that suffered a fall on the Sensex today.
Most Asian indices closed in the positive today whereas Europe has also opened on a positive note. The rupee was trading at Rs 45.5 to the dollar at the time of writing.
BHEL, the domestic power equipment manufacturer, closed marginally higher on the bourses today. As per a leading business daily, the company has won a US$ 400 m contract from the Government of Yemen for a 400 MW gas powered project. That BHEL was able to bag a contract despite the presence of seven international firms does speak about the technological strides that the company has taken over the years. The company recently announced its 3QFY11 results where bottomline was up 31% YoY on the back of a 25% YoY growth in topline. It was sitting on a healthy order book of Rs 1.6 trillion at the end of the quarter with the management expecting the order inflow for the full year to stand at a strong Rs 600 bn. The Yemen contract, as discussed above, should go some way towards fulfilling the same we guess.
India, the second fastest growing major economy in the world, will keep its mantle intact in FYII. If one goes by what the Government is saying that is. As per the Government, Indian economy is expected to log in a growth of around 8.6% in the fiscal year that ends in March. The growth is likely to receive a significant boost by a rebound in agriculture as the same is likely to grow by more than 5% on the back of good monsoon rains. It should be noted that the same expanded by a mere 0.2% earlier as droughts played havoc on output. What is not heartening though is the fact that the fourth quarter of the fiscal is likely to bring about a growth slowdown as higher inflation and RBIís measures for the same start to show their impact.