Sensex reverses post Budget sell-off

The key stock indices recorded its biggest weekly gain since May 24. The FM’s clarifications in parliament on disinvestment and the borrowing programme, coupled with reports of encouraging progress in monsoon led the recovery after last week’s sharp decline. Strong global cues also helped. Finally, the BSE Sensex surged 9.5% and the NSE Nifty added 9.3%.

The BSE Sensex hit an intra-week high of 14,801 and low of 13,220. While, the NSE Nifty hit an intra-week high of 4,390 and low of 3,918.

The Foreign Institutional Investors bought stocks worth Rs7.59bn during the week and the Domestic Institutional Investors also purchased stocks worth Rs9.61bn during the week.

The top gainers: The top gainers in the Sensex were DLF (up 19.4%), ICICI Bank (up 18.1%), Reliance Capital (up 16.9%), Tata Motors (up 16.7%) and Hindalco (up 15.8%).

The Top Losers: HUL was the only loser among the 30-components of the BSE Sensex. The stock was down 0.22%.

The BSE IT Index (up 9.7%):The top gainers in IT sector were Sasken Communication (up 36.2%), Mahindra Satyam (up 19.9%), Wipro (up 11.6%), Patni Computer (up 10.9%), TCS (up 9.9%) and Infosys (up 8.4%),

Financial Technologies (FT) rallied by over 24% during the week. National Multi-Commodity Exchange signed up for ODIN - brokerage solution of FT.

HCL Tech surged 20% during the week. HCL Axon, a division of HCL Technologies announced a strategic partnership with UCS Group and a takeover of the UCS Group's Enterprise Solutions SAP practice.

The BSE Consumer Index: The top gainers in the consumer durables space were Videocon Industries (up 13.5%), Samtel Color (up 9.7%), Su-Raj Diamonds (up 6.6%), Mirc Electronics (up 5.2%) and Titan (up 3.8%).

The BSE Healthcare Index (up 5.3%): Strides Arcolab was the top gainer in the Pharma space. The stock was up 14% during the week. Reports stated that the company is exploring merger and acquisitions for its specialty Pharma and R&D units.

Sun Pharma gained 11.6% during the week. Reports stated that the company along with its subsidiary, Caraco reached a settlement agreement with Forest Laboratories and licensing partner H Lundbeck AS, over a pending patent infringement dispute.

Lupin advanced by 14% during the week. Lupin Holdings B.V. Netherlands, a wholly-owned subsidiary of Lupin increased its holdings in Generic Health Pty from 38.45% to 48.11%.

Among the other major gainers were Aurobindo Pharma (up 12.4%), Morepen Labs (up 11.8%) and

The top losers were Dr Reddy's (down 3.8%), Piramal Healthcare (down 2.1%), Ipca Labs (down 1%) and Panacea Biotec (down 1%).

The BSE Banking Index (up 11%): The top gainers in the banking space were ICICI Bank (up 18.1%), Kotak Mahindra Bank (up 15.6%), Axis Bank (up 15.3%), Yes Bank (up 12.3%) and PNB (up 12.2%).

HDFC Bank advanced 4.2% during the week. The bank earned total income of Rs51.36bn for the quarter ended June 30, 2009, an increase of Rs9.21bn over the corresponding quarter ended June 30, 2008. Net revenues (net interest income plus other income) were Rs28.99bn for the quarter ended June 30, 2009, an increase of 25.1% over the corresponding quarter of the previous year.

Meanwhile, the annual rate of inflation stood at -1.21% for the week ended July 4, 2009 as compared to -1.55% for the previous week June 27, 2009 and 12.19% during the corresponding week July 5, 2008 of the previous year.

The BSE Auto Index (up 11%): The top gainer in the auto sector was Tata Motors. The stock was up by 16.7% during the week. Ratan Tata, Chairman of Tata Group, handed over the first owner of Tata Nano on Friday at Tata Motors showroom in Mumbai. Tata Motors completed the selection process of selecting the first 1 lakh lucky owners of Tata Nano via lottery system.

Bajaj Auto surged over 13% during the week. The company’s Q1 net profit was at Rs2.93bn as against Rs1.75bn a jump of 67.4% YoY. While, net sales rose 1.8% to Rs22.6bn as against Rs22.2bn in the same period last year. The company has gains of Rs218mn on derivative hedging and has retirement scheme cost of Rs458.2mn.

Among the other major gainers were Hindustan Motors (up 15.5%), Hero Honda (up 12.9%), M&M (up 12.1%), Ashok Leyland (up 9.3%) and Maruti Suzuki (up 7.1%).

The BSE Oil & Gas Index (up 7.8%): The top gainers in oil & gas space were GSPL (up 20.4%), Shiv-Vani Oil (up 13.7%) and Hindustan Oil (up 13.1%).

Gujarat NRE Coke soared over 19% during the week. Reports stated that the company plans to complete the hostile takeover of Australian coal exploration company Rey Resources by year end.

Essar Oil surged over 13% during the week. Reports stated that the company plans to expand its retail fuel outlet network to 1,500 by the end of this year.

Meanwhile, Great Offshore was down 0.2% during the week.

The BSE Capital Goods Index (up 7.5%):The top gainers in the capital goods space were Aban Offshore (up 26.8%), HEG (up 11.9%), Dredging Corp (up 10.5%), Thermax (up 10.4%),

BHEL rallied over 12% in the week. The manufacturing capacity of the company is being further enhanced to 15000 MW per annum by end December 2009. This will further go up to 20000 MW per annum by December 2011. The estimated cost for the above capacity expansion programme of BHEL is approximately Rs58.03bn.

On the other hand, the top loser was Gammon India, the stock was down 7.3% during the week after a part of an under construction Delhi Metro line collapsed on Sunday morning, which was being constructed by Gammon India. This was the second accident involving Gammon India. The first incident was when Gammon was held responsible for the collapse incident in Panjagutta Hyderabad which claimed two lives in September 2007. Eight pre-fabricated segments of the flyover collapsed after scaffolding caved in on Sept. 9, 2007.

The Cement Sector: The top gainers in the cement sector were Dalmia Cement (up 13.2%), Birla Corp (up 13.1%), Grasim (up 12.4%), Shree Cement (up 10.7%) and India Cements (up 9.7%).

The Telecom Sector: The top gainers in the telecom space were RCom (up 12.5%), Shyam Telecom (up 10.7%), Gemini Comm (up 10.7%), Himachal Futuristic (up 9.9%), Idea Cellular (up 9.4%), WWIL (up 8.7%) and MTNL (up 8.2%).

Bharti Airtel surged over 6.2% during the week. According to reports, Bharti Airtel and MTN Group are expected to confirm the details of the deal in the coming weeks, media reports stated.

The Realty Sector (up 17.6%): The top gainers in real estate space were Ackruti City (up 20.6%), DLF (up 19.4%), HDIL (up 18.5%), Ansal Properties (up 14%) and Mahindra Lifespace (up 13.2%).

Sobha Developers was the only loser, down 2.3% during the week

The Metals sector (up 10%): The top gainers in the metal space were Bhushan Steel (up 29%), Ispat Industries (up 18.2%), Lloyds Metals (up 17.2%), JSW Steel (up 16.2%) and Bhuwalka Steel (up 15.5%).