Every year, China consumes around 40% of the world’s concrete and steel for its massive building projects. Now a lot of strong, young buildings are being torn down to make way for even bigger structures.
The market finished the week with modest gains, closing in the green for the fourth week in a row. The rally was attributed to buying by foreign institutional investors, who have pumped in Rs18,649 crore so far in the month of September 2010, and supportive global cues.
Adding to the gains accrued last Friday (17th September), the market started the fresh week with decent gains on Monday. While there was a bit of consolidation the next day, the Sensex closed above the 20,000-mark and the Nifty breached the 6,000 levels, last seen in January 2008. The BSE Bankex, BSE Healthcare (HC), BSE Fast Moving Consumer Goods (FMCG) and BSE Auto indexes touched their all-time highs on Tuesday.
Profit booking and nervousness about the global economy resulted in the market ending its three-day winning steak and ending with marginal losses on Wednesday. While the benchmarks touched their intraday highs of 20,105 and 6,037 in early trade, they could not sustain the gains and ended below their crucial levels. A further correction was seen on Thursday on a bout of selling in heavyweight stocks. Recovering from the two-day lull, the Sensex and Nifty once again ended above their crucial levels of 20,000 and 6,000, respectively.
The market closed the week with gains of 2% with the Sensex surging 450.43 points at 20,045 and the Nifty advancing by 133.35 points to close at 6,018.
The top Sensex gainers during the week were Hindustan Unilever (HUL) (up 12%), HDFC, Maruti Suzuki, Hero Honda (up 7% each) and ITC (up 6%). The losers included Reliance Industries (RIL), Jindal Steel & Power (down 2% each), Jaiprakash Associates and Sterlite Industries (down 1% each).
In the sectoral space, the BSE Fast Moving Consumer Goods (FMCG) index (up 5%) and BSE Consumer Durables (CD) index (up 3%) were the notable gainers while the BSE Oil & Gas index (down 1%) was the lone loser in the week under review.
Food inflation rose for the fourth straight week to 15.46% for the week ended 11th September, as heavy rains and floods disrupted supplies of essential items.
Week-on-week, food inflation climbed 0.36 percentage points from 15.10% on 4th September. Although there were some signs of moderation in July which stayed on through the first half of August, inflation started to increase in the later half.
Fuel inflation for the week in review was unchanged at 11.48%.
The wholesale price index (WPI) based inflation for the month of August stood at 8.51%, according to the new Wholesale Price Inflation (WPI) series released by the government earlier this month.
The government has set a borrowing target of Rs4.47 lakh crore - Rs10,000 crore less than it had planned - this fiscal, given its comfortable fund position thanks to windfall revenue from auction of third generation (3G) telecom licences.
The government had pegged its total market borrowings for this fiscal at Rs4.57 lakh crore, out of which Rs2.84 lakh crore was raised in the first half, ending 30th September.
The reduced borrowing could be mainly due to over Rs1 lakh crore of revenue the government mopped up from sale of 3G telecom and broadband licences.
Recognising India's growing clout in the world, an official US report on global governance has declared the country the third most powerful nation after the United States and China.
The new global power line-up for 2010 compiling the world's most powerful countries/regions recognised India as the third most powerful country behind the US and China, and predicted that its clout as well as that of China and Brazil would further rise by 2025.
On the global front, US Federal Reserve chairman on Friday raised concerns about the slow pace of the economic recovery. The Federal Open Market Committee (FOMC) earlier this week reiterated its stand to infuse more money, if required, to boost the economy. However, it kept its overnight interest rates steady at near zero levels.