Small-cap, mid-cap stocks shine as market extends gains for a third week in a row

Key benchmark indices extended gains for the third straight week boosted by positive global cues. The market gained in 3 out of 4 trading sessions. The BSE Mid-Cap and the BSE Small-Cap indices outperformed the Sensex. Expectations of a further easing of the monetary policy by the Reserve Bank of India (RBI) also aided the rally. Inflation as measured by the wholesale price index rose 0.31% in the 12 months to 21 March 2009, marginally above the previous week's annual rise of 0.27%, government data showed on 2 April 2009. The annual inflation rate was 7.85% during the corresponding week of the previous year.

The 30-share BSE Sensex gained 300.34 points or 2.98% to 10,348.83, in the week ended Thursday, 2 April 2009. The broader 50-issue Nifty jumped 102.40 points, or 3.29%, to end the week at 3,211.05.

The BSE Mid-Cap index gained 191.26 points or 6.51% to 3,125.42 and the BSE Small-Cap index advanced 198.81 points or 6.13% to 3,436.92 in the week. Both these indices outperformed the Sensex

The BSE Sensex jumped 2188.43 points or 26.81% in to 10,348.83 on 2 April 2009 from a three-year closing low of 8,160.40 on 9 March 2009. The Sensex is up 701.52 points or 7.27% in calendar 2009 from its close of 9,647.31 on 31 December 2008. The S&P CNX Nifty is up 251.90 points or 8.51% in calendar 2009 from its close of 2,959.15 on 31 December 2008.

Trading for the week began on a dismal note with key benchmark indices tumbling nearly 5% on Monday, 30 March 2009 mirroring weak global equities. The BSE 30-share Sensex slumped 480.35 points, or 4.78%, to 9,568.14 and the S&P CNX Nifty lost 130.50 points or 4.2% to 2,978.15.

Positive global cues and buying by domestic institutional investors on last day of financial year to boost net asset values helped indices log gains on 31 March 2009. The BSE 30-share Sensex rose 140.36 points, or 1.47%, to 9,708.50 and the S&P CNX Nifty rose 42.80 points or 1.44% to 3,020.95.

Higher US index futures, firm global markets and build-up of positions fresh positions by traders for the new accounting year 2009-10 boosted market on 1 April 2009. The BSE 30-share Sensex gained 193.49 points, or 1.99%, to 9,901.99 and the S&P CNX Nifty rose 39.40 points or 1.3% to 3,060.35.

Key benchmark indices extended gains for the third day on Friday 2 April 2009 mirroring firm global equities, buying by foreign funds and hopes of interest rate cuts by the Reserve Bank of India after inflation hovered near record low. The BSE 30-share Sensex jumped 446.84 points, or 4.51%, to 10,348.83 and the S&P CNX Nifty surged 150.70 points or 4.92% to 3,211.05.

India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) surged 7.39% to Rs 1662.50 in the week. As per reports, the company has started pumping gas from the Krishna Godavari (KG) which is estimated to add close to $2 billion to the company's profit at peak production levels.

Rate sensitive real estate shares rose on hopes lower rates will spur housing demand. DLF (up 14.21%), Housing Development & Infrastructure (up 17.93%), Indiabulls Real Estate (up 10.73%), and Unitech (up 4.59%), gained. Most of the realty deals including sale of commercial property and housing sales is driven by finance.

Metals stocks gained tracking firm prices on the London Metal Exchange triggered by hopes that the worst may be over for the global economy. Tata Steel (up 0.24%), Steel Authority of India (up 3.59%), and Hindalco Industries (up 3.54%), advanced.

Banking stocks were mixed with investors on the one hand betting that lower interest rates will boost lending growth and on the other hand concerns remained that non-performing assets will rise in a slowing economy. India's largest bank in terms of assets and branch network State Bank of India rose 1.30%.

India's second largest private sector bank by operating income HDFC Bank rose 4.25%. However India's largest private sector bank by net profit ICICI Bank fell 6.05%.

Indian largest engineering and construction firm by sales Larsen & Toubro rose 5.19% to Rs 715.30 after it won two orders worth a total of Rs 1,344 crore ($265 million) from refiner Mangalore Refinery and Petrochemicals.

However India's largest equipment maker by sales Bharat Heavy Electricals slipped 1.25% to Rs 1532. The company reported a 6.06% rise in net profit to Rs 3,039 crore on 28.52% rise in turnover to Rs 27,505 crore for the financial year ended March 2009 over financial year ended March 2008, as per tentative figures released on 2 April 2009.

Outsourcing focussed IT stocks rose on hopes aggressive measures by the United States to revive the economy may bear fruit. US is the biggest market for Indian IT firms. India's second largest software services exporter Infosys Technologies rose 5.66% to Rs 1423.

India's third largest software services exporter, Wipro advanced 6.32% to Rs 269.15. Recently its unit Wipro Infotech won an outsourcing contract worth Rs 1,182 crore from the Employees State Insurance Corporation (ESIC).

However India's largest software services exporter by sales TCS fell 0.73% to Rs 571. The company's advance tax payment fell 54.3% to Rs 53 crore in Q4 March 2009 over Q4 March 2008.

India's largest tractor maker by sales Mahindra & Mahindra rose 9.33% to Rs 421.25. after booking for the company's new vehicle Xylo crossed the 12000 mark since its launch on 13 January 2009. The company posted a 6% rise in total vehicles sales to 26,209 in March 2009 over March 2008.

India's largest commercial vehicle maker by sales Tata Motors rose 6.99% to Rs 202. Its domestic sales however fell 13% to 52,686 units in March 2009 over March 2008. Nevertheless, the domestic sales rose 24% in March 2009 over February 2009.

India's largest car maker by sales Maruti Suzuki India rose 1.84% to Rs 780 as its total vehicle sales rose 21.9% to 85,669 units in March 2009 over March 2008.

Among the small and mid-cap gainers, Tanla Solutions (up 39.46%), ICSA India (up 28.77%), JSW Steel (up 33.78%), Financial Technologies (up 19.22%), surged

Prime Minister Manmohan Singh on 24 March 2009 said India's economy will revive in a big way in six to seven months as stimulus packages start to take effect. On the same day, Planning Commission Deputy Chairman Montek Singh Ahluwalia scaled down the GDP (gross domestic product) growth projection for the current fiscal to 6.5% from the 7.1% increase estimated by the government earlier during the year, owing to the ongoing global crisis.

Indian manufacturing activity contracted for a fifth straight month in March 2009 as demand remained depressed by the global economic downturn, although there were some signs of improvement, a survey showed on 1 April 2009. The new orders index rose to 49.5 in March 2009 from 45.9 in February 2009.

Exports fell 21.7% in February 2009 to $11.91 billion from a year earlier, government data released on 1 April 2009 showed. It was a fifth straight monthly fall in exports as the global slowdown slashed demand for goods.

India's fiscal deficit for the April-February 2009 period was Rs 3,07,000 crore ($61 billion), or 94.1% of an upwardly revised budget target, a government statement said on Tuesday, 31 March 2009. In February 2009, the government revised upwards its fiscal deficit estimate for the year ending 31 March 2009 to Rs 3, 27, 000 crore, equivalent to 6% of gross domestic product from 2.5% estimated earlier. The deficit has widened after the government announced extra spending of close to Rs 1,50,000 to cover a farm debt scheme, subsidies and steps to stimulate a slowing economy.

Stock markets will remain shut on Friday, 3 April 2009, on account of Ram Navmi. The market is closed again on Tuesday, 7 April 2009 on account of Mahavir Jayanti and on 10 April 2009 on account of Good Friday.