MNC results, elections to rule stock markets this week
AFP
MUMBAI, January 18: The forthcoming elections and the annual financial results of several consumer goods firms will dominate the stock market next week. Says analyst Devesh Kumar at the foreign brokerage Hoare Govett Asia, "The market has fallen a lot this week. The key issues next week will be the election manifesto of BJP and the annual results of consumer goods companies."The 30-share sensitive index on the Mumbai Stock Exchange (BSE) was down 147.88 points or 4.18 per cent to 3,382.32 points on Friday over the previous week's close of 3,530.20 points. The 100-share national index was down by 55.79 points or 3.63 percent to 1, 477.70 points at close over the previous finish of 1,533.49 points. It may be recalled that share prices fell sharply on Thursday following newspaper reports that the BJP, if it came to power, would impose curbs on foreign investments in Indian stock markets to stave off the financial crisis gripping south-east Asian economies. A day later, party officials said the BJP was yet
to take a financial decision on the issue. Kumar said the market's fears were "dissipating" over a likely anti-foreign investment stance by the BJP. "We do not expect any strong anti-foreigner statements in the BJP election manifesto. This will push up the index." Kumar also said several foreign consumer products companies operating in India would announce their annual financial results next week. "Preliminary reports are that sales have been good and this will also cheer the market. The BSE index is expected to be up by about 100 points next week." Last week's trade saw the Associated Cement Companies (ACC) fal by Rs 15 to Rs 1,265. Bombay Dyeing fell by Rs 1.50 to Rs 95.75, Glaxo by Rs 16.25 to Rs 365 and Reliance Industries by Rs 7 to Rs 156.75. On the other hand, the State Bank of India gained Rs 13.25 to Rs 247.50 Rupees. Tata Engineering (Telco) dropped by Rs 32 to Rs 249 and Tata Steel eased Rs 2.75 to Rs 126.75.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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