Mumbai: Indian shares fell two per cent yesterday, but rallied by almost a half during April-June in their biggest quarterly gain in 17 years as investors rode on signs of an economic recovery and hopes for market-friendly policies.
The outlook for the coming quarter will depend upon how much Prime Minister Manmohan Singh's ruling coalition, re-elected in May with a stronger mandate, lives up to market expectations for reforms such as further opening up the economy to foreigners and stake sales in state companies.
Progress of annual monsoon rains, which provide a lifeline to India's trillion-dollar economy, the federal budget next Monday and quarterly company results in July should set the trend.
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"Most positives are already factored in our prices, whereas disappointments are not. So, we don't see much of upside from here," said Ambareesh Baliga, vice president of Karvy Stock Broking.
The 30-share BSE index jumped 49.3 per cent in the three months to June 30, behind only Vietnam in Asia that rose around 60 per cent in the quarter.
It was the biggest rise for the benchmark since it soared 124.5 per cent in the March quarter of 1992 when Singh, who was then finance minister, kicked off reforms to open up the economy.
In the currency market, the rupee advanced 0.4 per cent to 47.905 per dollar at the 5pm close in Mumbai, according to data compiled by Bloomberg. It last posted a winning quarter in the period ended December 2007.
The outlook for the coming quarter will depend upon how much Prime Minister Manmohan Singh's ruling coalition, re-elected in May with a stronger mandate, lives up to market expectations for reforms such as further opening up the economy to foreigners and stake sales in state companies.
Progress of annual monsoon rains, which provide a lifeline to India's trillion-dollar economy, the federal budget next Monday and quarterly company results in July should set the trend.
Click Here!
"Most positives are already factored in our prices, whereas disappointments are not. So, we don't see much of upside from here," said Ambareesh Baliga, vice president of Karvy Stock Broking.
The 30-share BSE index jumped 49.3 per cent in the three months to June 30, behind only Vietnam in Asia that rose around 60 per cent in the quarter.
It was the biggest rise for the benchmark since it soared 124.5 per cent in the March quarter of 1992 when Singh, who was then finance minister, kicked off reforms to open up the economy.
In the currency market, the rupee advanced 0.4 per cent to 47.905 per dollar at the 5pm close in Mumbai, according to data compiled by Bloomberg. It last posted a winning quarter in the period ended December 2007.