Sensex ends week with 241-pt loss (2) May 9, 2009
Posted by dhirendra1972 in Best Performers, Weak Metal Price.Tags: Bad Loans, Capital Market, Cash Flow Business, Consumer Goods, Metal Price, Prominent Loser, Volatile
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Banking and metal shares have been very volatile over the past few months, as investors are worried about rising bad loans in banks’ books and weak metal prices. This has often led to steep falls in these shares, and equally dramatic recoveries when investors felt the panic may have been overdone.
Wipro, Sterlite Industries, ICICI Bank, Tata Steel and Reliance Infrastructure were among the prominent losers of the day, shedding between 4-6%.
Shares of automobile, capital goods and fast-moving consumer goods firms were among the best performers on a relative basis, though most of these stocks were under pressure, too.
“We strongly believe that the Indian story on fundamentals in 2008 got derailed because highly-geared and negative cash flow business groups could no longer raise money in the capital market.
If this fact is changed over the coming months, and Indian companies succeed in raising $10-15 billion over the next few months, even if the market was to reverse later in the year on global factors or on domestic policy tightening, corporate fundamentals could be on the way for the market to be substantially higher in 2010,” a Credit Suisse report earlier this week said.
