The FIIs reduced their positions as rupee depreciated to one-year low. The speeches by President Obama and the Federal Reserve chairman did not enthuse the investor sentiments.
President Obama announced a passionate appeal for US $447 billion package to create jobs but the statements given by the republicans later onwards did not see equal enthusiasm. This has led many in the investing community to state that the provisions announced by the President will be diluted and hence it could be less effective.
In another conference the speech by Ben Bernanke was equally anticipated, that turned out to be a dud. Bernanke did not provide any clear picture if the Federal Reserve will announce a Quantitative Easing 3 (QE3 in the coming days). Nor did the chairman gave any suggestions on possible options that the Fed will discuss at its upcoming FOMC meetings.
The BSE Sensex gained nearly 500 points from Monday to Friday but then lost approximately 300 points on Friday. This led to an effective gain of 200 points at the end of the week. On the National Stock Exchange benchmark Nifty also closed on the positive side.
The upcoming weeks the factors that will determine the fate of the market will be the FOMC meet, the ONGC FPO, and the vote on Obama"s jobs report.
Among the interesting stock based news was of NALCO, as reports came that the company will be entering into a contract for selling aluminum ingots. The quantity is said to be to the tune of 7,500 tonnes on a cost, insurance and freight basis. On the pricing front, the sale is believed to have occurred at nearly US$ 102 per tonne premium over the average LME price.
On the other hand, India's largest cellular operator Bharti Airtel, received permission to offer second and third generation services in the African nation of Rwanda. The move will expand the company's global footprint to 20 countries. This will give the company immense opportunity in the East African country.
And the announcement of the debt restructuring of GTL and GTL Infrastructures was another big news of the week. This stock will find movement next week also.