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Rise in world stocktrading-sign of Financial improvement.
Prior to Christmas Eve, on 24-12-2009, Sensitive Index at Bombay stock exchange (SENSEX) surprised all those who give stock tips and people involved in stock trading by jumping up by 539 points or 3.23% than the previous day, to close at 17, 231.11 points. It is highest in past two months, i.e. since October 17th of 2009. (This is based on reports in 'THE HINDU'. But Some other papers give different figures.Indian Express says the rise is by 129 points at BSE, and by 33.8 points at NSE.But all are unanimous on the point that it is highest in several months) Stock exchange index at Mumbai is measured as the basis of trading in 30 top listed shares only. But the national stock exchange (NSE) of India calculates its index which is called NIFTY on the basis of trading in 50 top ranked shares. On 24-12-2009, NIFTY index also jumped up by 158.75 points or 3.19% from the previous day closing.
The rise was due to heavy share trading in Metal industry shares and energy corporate stocks.Share prices in these two sectors was heavier when compared to other chips.
Indices of different Asian Countries also showed an improvement by 0.35 to 1.91%. European stock markets showed a firm trend, especially in the morning session.This shows that stock market investing now is a wise act.Thanks to highly developed communication technology, as now have online share trading and can buy or sell at any point of time, without going to etock exchange.
In Mumbai, i.e. Bombay stock exchange (BSE) the single day jump on Dec 24th was highest since May 18th, on which date SENSEX had jumped up by an unprecedented 2110.79 points, with the advent of UPA government to power with clear majority. Eventhough it fell later, for the past one month or so, Indian stock market is showing steady rise, and stock market prices are rising.But the day trading on 24th, presented an unexpected increase.
All these factors ultimately reinlled in strengthening US dollar, as importers bought much. By this, in spite of rise in SENSEX, rupee fell a little. According to financial reporters of ‘THE HINDU’ ,leading Indian daily newspaper, “US dollar was at a two-month high against Japan Yen”.
All these show that US economy is recovering firmly.
Reasons for rise
Financial analysers attribute the encouraging rise in sensex to the following factors
1.Overseas investors were firm on trading stocks in India
2.Corporate men remitted higher corporate tax advance
3. Finance minister’s assurance to Industrial sector that the stimulus packages will continue till the end of current fiscal year.
4 U.S. economic data gave the hints that global market is recovering, which provided a lift to market sentiments.
The weak after 24th December is almost a holiday for Indian stock markets. We should see whether the trend remains upward only on January 4th and onwards. .
In Comparison to Previous year....
Economic analysts have pointed out, in comparison to previous year,Indian stock market has shown a very ssatisfying rise of 75% in comparison with the previous year. On January 1, 2009,Bombay stock exchange stood at, 9647 points,where as now it is- 17231.NIFTY also has shown a rise of 70% . It was 3033 on Jan 1st. Now it is 5178.
Universal rise on 29th Dec,2009
Again on 29th Dec, even after two days holiday in many countries, and again going to be holiday for two days possibly, the stock trading in different parts of the world has shown upword trend.Details are as follows:
1. BSE Sensex rised by 40.95 points,closing at 17,0401.51.Gain of 0.24% over 24th Dec.
Nifty also gained 9.55 points, closing by 5187.96 points.
2. In USA, DOW gained 11.03 points rising by 10% over ther the previous closing.
NASDAQ gained little and closed at 2287.96 points.
3. In EUROPE, FISE gained 22 points and DAX improved by 8.63% over the previous closing.
4. Asian market also showed slight rise.
US dollar also improved a little.
In a nutshell, On 29th Dec, overall trend in the world stock market trading is encouraging.
This shows US economy is constantly stabilising itself.
This may also help Dubai