World markets rally on metals, mergers
Sensex touches a new high of 15,330 points tracking US, Asia bourses, reports MC Vaijayanthi.The impactUpdated: Jul 14, 2007 05:07 IST
Friday the 13th turned out to be lucky for global markets. The Bombay Stock Exchange’s Sensex and the National Stock Exchange’s Nifty were caught in an upward spiral set off by the Dow Jones and the S&P 500 indices in the US overnight, followed up by bourses in Australia, Singapore, Hong Kong and South Korea on Friday morning.
The Sensex touched a new high of 15,330 points and closed at an all-time high of 15,272.72 with a gain of 1.2 per cent. The Nifty crossed the 4,500 mark and closed a little above, notching up gains of 1.3 per cent. Turnover on the Indian exchanges too hit new highs, with the NSE’s traded value reaching Rs 14,883 crore and the BSE’s turnover climbing to Rs 6,752 crore.
“The Indian markets have been lagging. We may have to do a bit of catching up with the global market performers,” said Pratik Agrawal, head of equities, ABN Amro Mutual Fund.
In the US, the Dow Jones Industrial Average rose 292.07 points, taking the index to an all-time high of 13,869 and the S&P 500 hit a high of 1,547 points, a rise of 1.92 per cent. Brazil’s Bovespa and Mexico’s BOLSA indices, too, hit new highs. S&P Australia rose 1.15 per cent to an intra-day high of 6,436 and South Korea’s Kospi hit 1,962, a rise of 2.78 per cent. Singapore’s Straits Times Index moved up by 60.45 points to 3,685 and Hong Kong’s Hang Seng rose 430.9 points to a high of 23,239.92. <b1>
Metals and mergers are driving global markets. Brazilian mining company Rio Tinto’s $38 billion bid for Canadian aluminium company Alcan set the momentum for the global rally. Further consolidation in the global metal industry is not ruled out and valuations are getting higher as consolidation is expected to lessen volatility in metal prices.
Hindalco topped the Sensex chart with 6 per cent gains and Tata Steel moved up 3.35 per cent. The BSE metals index outdid the Sensex by gaining 4 per cent.
Higher inflation numbers for the week did not affect the upsurge in share prices. Only property stocks corrected after having run up this week following the DLF listing and launch of the BSE realty index. GMR Infrastructure moved a 100 points, hitting a high of Rs 1,005 and a low of Rs 902.20 before closing at Rs 911.95. The stock has moved 71 per cent in a month and 23 per cent in the past week.