The Hindu : Karnataka / Bangalore News : Sensex effect felt in Bangalore too

Online edition of India's National Newspaper
Thursday, Apr 20, 2006

Karnataka

Karnataka - Bangalore

Sensex effect felt in Bangalore too

Special Correspondent

The market is expected to remain buoyant in the weeks to come

Bangalore: The sensex hitting an all-time high of 11,000 plus points had its echo in Bangalore too.

The Bangalore Stock Index, regularly compiled by the Alliance Business Academy here, a regional index of 25 companies headquartered in Bangalore, ended March 2006 with an all-time high of 19,323, an increase of 1,618 points from February.

Good showing

In percentage terms, compared to March of last year, Bangalore based stocks are up sharply by almost 71, rising by more than 7,999 points, the Alliance Business review said.

Of the 25 individual companies that make up the BSI, 16 stocks were up and nine were down during March.

The five companies that showed the highest monthly percentage gains were Mysore Cement (42.8), 3M India (17.9), Bharat Electronics Ltd. (19.5), ABB (18) and Bharat Earth Movers Ltd (17.9).

The five top losers during March were VXL Instruments (-19.4 per cent), Mangalore Chemicals (-12.2), Hindustan Machine Tools (-9.3), Vijaya Bank (-7.4) and Sonata Software (-6.9), the review pointed out.

Other companies whose stocks went up significantly include MICO, Kennamteal India, Wipro, Infosys, Essar Shipping and Subex Systems.

National level

At the national level, the BSE-30 Index increased by 8.8 per cent in March, slightly less than the 9.13 per cent increase for the Bangalore Stock Index. On an annual basis, while the BSE-30 Index rose by 74 per cent over last year, BSE increased by 71 per cent since March 2005.

According to trade circles, the stock market here responded to the positive issues addressed in the Union Budget and the few benefits that were announced, propped up the service sectors. All the fresh announcements made, along with those where status quo is maintained, appeared as positive signals to the investors, both domestic and international.

Response good

The response from domestic investors was very high and that from Foreign Institutional Investors was incremental.

These were similar to the factors that resulted in an all-time high sensex which is also reflected in the Foreign Exchange reserves.

The market is expected to remain buoyant in the weeks to come with many companies likely to expect good results for their fiscal years ended March and the investor confidence is very high.

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