Market posts decent gains ahead of earnings season

The market posted decent gains in the week ahead of earnings season. IT bellwether Infosys Technologies kickstarts the earnings reporting season on 15 April 2008. BSE Mid-Cap and BSE small-Cap indices outperformed the market during the week.

The 30-share BSE Sensex rose 464.52 points or 3.03% at 15,807.64 in the week ended Friday, 11 April 2008. The S&P CNX Nifty gained 130.80 points or 2.81% to 4777.80 in the week.

The BSE Mid-Cap index advanced 260.37 points or 4.15% to 6,523.22 and the BSE Small-Cap index gained 366.44 points or 4.74% to 8,081.43. Both these indices outperformed the Sensex.

Trading for the week started on an upbeat note with the BSE 30-share Sensex advancing 413.96 points or 2.7% at 15,757.08 on 7 April 2008. The broader based S&P CNX Nifty was up 114.2 points or 2.46% at 4,761.20 on that day. IT, banking, metal and FMCG stocks led the rally.

Market edged lower on 8 April 2008 tracking weak Asian and European markets. The 30-share BSE Sensex slipped 169.46 points or 1.08% at 15,587.62 and the broader based S&P CNX Nifty was down 51.55 points or 1.08% at 4,709.65.

BSE Sensex gained 202.89 points or 1.3% at 15,790.51 on 9 April 2008. The broader based S&P CNX Nifty was up 37.4 points or 0.79% at 4,747.05 on that day.

The 30-share BSE Sensex fell 95.41 points or 0.60% at 15,695.10 on 10 April 2008. The CNX S&P Nifty fell 14.05 points or 0.30% at 4733 on that day

Market edged higher on 11 April 2008, boosted by improved industrial production data and firm Asian and European markets. The 30-share BSE Sensex rose 112.54 points or 0.72% at 15,807.64 and the S&P CNX Nifty gained 44.80 points or 0.95% at 4,777.80

India’s largest private sector company in terms of market capitalisation and oil refiner Reliance Industries (RIL) rose 9.81% to Rs 2550.05 in the week. As per reports, RIL is planning to enter into the rig manufacturing business besides investing $2.5 billion to enter into petrocoke gasification.

IT pivotals were mixed ahead of IT bellwether Infosys Technologies’ results, which will be declared on 15 April 2008. Infosys (down 4.08% to Rs 1422.45) and Wipro (down 2.24% to Rs 406.30), declined. India’s fourth largest software services exporter Satyam Computer Services rose 1.87% to Rs 433.20.

India’s largest IT services exporter by sales Tata Consultancy Services rose 4.37% to Rs 908.15. The company has signed a new multi-year contract with Chrysler LLC to provide a comprehensive portfolio of IT services.

India’s second largest telecom services provider by sales Reliance Communications slipped 1.38% to Rs 493.25 in the week. It has reportedly formed a joint venture with a local firm to launch GSM mobile services in Sri Lanka by this year.

India's largest state-run oil exploration firm in terms of revenue ONGC shed 0.56% to Rs 1,000.25 in the week. ONGC Videsh (OVL), the overseas arm of Oil and Natural Gas Corporations (ONGC), will reportedly sign an agreement on 8 April 2008 to take a 40% stake in the San Cristobal oilfield in Venezuela. OVL will make a total investment of $355.7 million comprising signature bonus of $173.1 million for the stake, the reports added.

National Thermal Power Corporation (NTPC), the country’s largest pubilc sector power generation company in terms of sales slipped 1.71% to Rs 186.50 in the week. The company posted 4% rise in provisional net profit to Rs 7,129 crore on 13% rise in provisional net sales to Rs 37,004 crore in FY 2008 over FY 2007.

India’s largest truckmaker by sales Tata Motors rose 1.36% to Rs 622 in the week on reports it had raised the price of trucks and buses by an average of 3.5 % from 1 April 2008 to offset higher raw material costs.

India's largest engineering and construction firm by sales Larsen & Toubro advanced 3.26% to Rs 2774 after it bagged four orders worth Rs 1687 crore for water supply projects, sinter plant and cold roll mill and a coal handling plant.

India's largest commercial bank State Bank of India rose 3.90% to Rs 1667.90 in the week. It has reportedly shortlisted three potential partners, including Insurance Australia Group, for a general insurance venture. The other two shortlisted partners are a German firm and a US-based firm, the reports suggested.

Sita Shree Food Products settled at Rs 43.90 on BSE, a premium of 46.33% over the initial public offer (IPO) price of Rs 30, on Monday, 7 April 2008. The food processing company’s product portfolio consists of wheat flour, maida, rawa, daliya, suji, chana dal etc.

The wholesale price index rose 7.41% in 12 months to 29 March 2008, accelerating from the previous week's annual rise of 7%, government data showed on Friday, 11 April 2008. The rate is the highest reading since 13 November 2004 when it was 7.68%. The annual inflation rate was 5.94% during the corresponding week of the previous year.

India's industrial output (IIP) rose 8.6% in February 2008 from a year earlier, rising from the previous month's upwardly revised 5.8% growth, data showed on Friday, 11 April 2008.

In the calendar year so far, FIIs sold shares worth a net Rs 11455.60 crore (till 9 April 2008), to offset their huge losses in the US sub-prime mortgage market.

Mutual funds were net sellers to the tune of Rs 379.80 crore in the month of April 2008 (till 9 April 2008).

Commerce Minister Kamal Nath announced an export target of $200 billion for the current fiscal. The Minister said that exports for the 2007-08 fiscal exceeded $155 billion. Exports saw a cumulative annual growth rate of 23% and accounted for 1.5% of the world's trade.