On the first day of trading, Indian (SENSEX) stocks rose for the first time in three days. The major gainers were IT and Banking sector companies. Wipro (WPRO) Ltd., Axis Bank, TCS were the major gainers. However, Tata Power was at a loss today.
The country’s S&P BSE Sensex climbed 0.4 percent to 21,146.46 at 12:30 p.m. in Mumbai. The major gainer, Wipro’s net income increased 17 percent in the third quarter and it gave a heavy boost to the company’s stock. However, as Reliance Industries (RIL) which said operating income dropped 7.4 percent in the three months to Dec. 31, was the worst performer.
On the other hand, Thai stocks traded lower today in thin volume due to incurring violence that hit sentiments and traders are worried about the law and order situation. There was mixed trend in Southeast Asian markets as the region is worried about a slowdown in the Chinese economy this year.
Comparatively Slower Chinese Economic Growth a Major Concern
The major reason the whole southeast regional stock market was slow the last week’ trade was that China is facing a decline in manufacturing sector that used to boost the regional economy. On the other hand, the latest violence in a prolonged political crisis is threatening the Thai economy.
In today’s trade, the Thai SET index was down 0.5 percent at 0616 GMT. The major decline in information technology shares led to decline the value of baht. Following the trend, shares in Singapore and Malaysia were down 0.6 percent and 0.4 percent, respectively.
According to market observers, the major reason as has been admitted here at ForexMinute is that China is facing huge problems of low economic growth and this is sending tremors to investors. Nevertheless, as expectations of a sluggish growth in China this year denting investor appetite for risk assets, the regional stock market is expected to be slow.
Though, China’s economy grew 7.7 percent in 2013 which is lot better than the EU and the US economic growth, it is not close to double digit growth that which it achieved for more than two decades. This is sending the wrong signals to investors in the country and foreign investors as well.
Though Singapore, China and Thailand have slow stock market today, the Vietnam stock index outperformed the region with a 2.3 percent rise at 0642 GMT. The major gainers were blue chips and banks. A similar pattern was seen in the Jakarta Composite Index and the Philippines, both traded 0.2 percent and 0.1 percent respectively.
To contact the reporter of this story: Jonathan Millet at email@example.com