Fourth straight weekly gain for Sensex

The market clocked gains for a fourth straight week in the week ended Friday, 2 May 2008, tracking firm global markets and on the back of good Q4 March 2008 results. Both the benchmark indices - BSE Sensex and S&P CNX Nifty settled above key levels of 17,600 and 5,200

Asian stocks edged higher, sending the region's benchmark index to its highest in more than three months, on speculation global credit-market turmoil will ease.

Aggregate results of 988 companies showed 17.10% rise in net profit on 21.60% rise in net sales in Q4 March 2008 over Q4 March 2007, so far. There was 27.30% rise in net profit on 23.40% rise in net sales in the year ended March 2008 over year ended March 2007.

The 30-share BSE Sensex gained 474.14 points or 2.76% to 17,600.12, in the week ended Friday, 2 May 2008. The S&P CNX Nifty rose 116.50 points or 2.27% to 5228.20, in the week.

The BSE Mid-Cap index rose 181.26 points or 2.56% to 7,237.47 in the week, outperforming the Sensex. The BSE Small-Cap index rose 93.99 points or 1.07% to 8,821.71 in the week, underperforming the Sensex.

In the calendar 2008, foreign institutional investors were net sellers of shares to the tune of Rs 10,358 crore (till 29 April 2008).

Trading for the week started on a weak note as investors turned cautious ahead of central bank’s monetary policy meet on 29 April 2008. The 30-share BSE Sensex lost 110.02 points or 0.64% to 17,015.96 and the broader based S&P CNX Nifty was down 22.05 points or 0.43% at 5,089.65, on 28 April 2008.

The market advanced on 29 April 2008 after the central bank kept interest rates unchanged. The 30-share BSE Sensex jumped 362.50 points or 2.13% at 17,378.46 and the broader based S&P CNX Nifty was up 105.85 points or 2.08% at 5,195.50 on that day.

The 30-share BSE Sensex shed 91.15 points or 0.52% at 17,287.31 and the broader based S&P CNX Nifty lost 29.6 points or 0.57% at 5,165.90 on 30 April 2008 as traders booked profit ahead of the outcome of the US Federal Reserve's policy meeting later in the day. Markets were shut on 1 May 2008 on account of Maharashtra day.

On 2 May 2008, the market posted gains despite the latest data showing a rise in inflation to highest level in more than three years. Firm global markets supported domestic bourses, with the Sensex scaling 2-month high. The 30-share BSE Sensex advanced 312.81 points or 1.81% at 17,600.12 and the broader based S&P CNX Nifty rose 62.30 points or 1.21% at 5,228.20 on that day.

Software stocks rallied after Finance Minister Palaniappan Chidambaram extended by a year a tax holiday scheme for export-driven software companies as he outlined some changes to the federal budget for 2008-09. The scheme for facilities based in technology parks was set to expire in March 2009.

India's second largest software exporter by sales Infosys Technologies surged 6.11% at Rs 1789.50 in the week. India’s largest software services exporter TCS rose 5.73% to Rs 940.75 in the week.

Wipro (up 7.72% to Rs 502.20), Satyam Computer Services (up 11.13% to Rs 494.10), i-flex Solutions (up 6.71% to Rs 1421.50), HLC Technologies (up 13.27% to Rs 296.10), and Tech Mahindra (up 17.13% to Rs 950.65), advanced.

India’s largest private sector company in terms of market capitalisation and oil refiner Reliance Industries (RIL) was up 1.92% of Rs 2674.85 in the week. The company said it had signed an agreement to buy a 90% stake in an exploration block in Peru.

India’s largest commercial bank State Bank of India vaulted 4.12% to Rs 1822.15 in the week. The bank reported 26% rise in net profit to Rs 1883 crore in Q4 March 2008 over Q4 March 2007. The results hit the market at the fag end of the trading session on Friday, 2 May 2008.

India's top small car maker in terms of sales Maruti Suzuki India settled 6.88% higher to Rs 788 in the week. The company's sales rose 22.4% to 59,539 units in the domestic market compared in April 2008 over April 2007. The company's exports grew 64.5% during the month compared with the year-ago period.

India’s largest dedicated housing finance firm by operating income Housing Development Finance Corporation gained 2.96% to Rs 2773.75 in the week. The company’s net profit rose 39.64% to Rs 768.12 crore on 33.82% rise in total income to Rs 2,320.21 crore in Q4 March 2008 over Q4 March 2007.

India’s largest telecom services provider by sales Reliance Communications slipped 2.75% to Rs 561.20 in the week. The company’s consolidated net profit rose 70.5% to Rs 5401.14 crore on 31.79% rise in total income to Rs 19067.76 crore in the year ended March 2008 over the year ended March 2007.

India’s largest tractor maker by sales Mahindra & Mahindra surged 8.59% to Rs 690.35 in the week. The board of Mahindra & Mahindra will meet on Saturday, 3 May 2008 to consider a proposal for a private placement of securities.

The US Federal Reserve on Wednesday, 30 April 2008, cut Fed Funds rate by 25 basis points to 2% and hinted at a pause in its recent campaign to lower borrowing costs.

India's wholesale price index rose 7.57% in 12 months to 19 April 2008, accelerating from the previous week's annual rise of 7.33%, government data released on 2 May 2008 showed. The rate was the highest since a reading of 7.68% on 13 November 2004.

Finance Minister (FM) P Chidambaram on Thursday, 1 May 2008, said state-run banks are unlikely to hike interest rates in the near future. FM said banks were quite happy that only the CRR (cash reserve ratio) has been raised by the Reserve Bank of India and policy rates have been untouched. RBI on Tuesday, 29 April 2008, hike CRR by 25 basis points to 8.25% in its annual monetary policy review.