Sensex plunges 512 pts during the week

After witnessing a surge last week, Indian markets wrapped this week on a disappointing note shedding over 2%, as it failed to sustain the 17,000 mark during the week. Intense selling by foreign funds in frontline stocks amid discouraging global cues, rising inflation and mixed Q2 earnings pulled the sentiments down.

The 30 share index, Sensex declined 512.01 points, or 2.96%, to 16,810.81 in the week ended Oct. 23, 2009. On the other hand, the broad based NSE Nifty dropped 145.1 points, or 2.82%, to 4,997.05 in the same period.

Mid-cap stocks lost 97.59 points, or 1.48%, to 6,510.89 in the week. While small-cap shares gained 6.5 points, or 0.08%, to 7,673.50 during the week.

Major gainers over the week in the sectoral indices were IT that gained 3.63%, TECk 1.86%, FMCG rose 1.41%.

Oil & Gas dropped 6.14%, Capital Goods fell 5.75%, BSE Consumer Durables lost 4.12%, Realty declined 3.55%, and PSU went down 2.70% among major losers in the sectoral indices over the week.

Major gainers in 30-share index were Tata Consultancy Services (7.04%), Hindalco Industries (4.05%), Tata Power Company (3.24%), Infosys Technologies (3.21%), and ITC (3.03%) over the week.

On the other hand Grasim Industries (10.05%), Jaiprakash Associates (8.87%), Tata Motors (8.49%), Reliance Industries (7.64%), and Reliance Capital (7.29%) were the major losers in the Sensex over the week

Wholesale price index (WPI) inflation continued to increase at 1.21% for the week ended Oct. 10, 2009 as against 0.92% in the week ago.

Corporate results

Engineering and construction major, Larsen & Toubro (L&T) announced a rise of 26.12% in the net profit to Rs 5,804 million for the quarter ended Sep. 30, 2009 as against profit of Rs 4,602.60 million for the same fiscal last year. Total income of the company was at Rs 81,363.90 million, a rise of 3.54% over the prior year period.

Apollo Tyres, the flagship of Raunaq Singh group, announced a phenomenal rise in standalone net profit for the quarter ended September 2009. During the quarter, the profit of the company rose 13.11 times to Rs 1,021.09 million from Rs 77.90 million in the same quarter previous year.

NIIT Technologies, a leading global IT solutions organization today announced a drop of 12.40% in the net profit for the quarter ended Sep. 30, 2009. During the quarter, the company reported a consolidated profit of Rs 321 million as against profit of Rs 367 million for the quarter ended Sep 30, 2008.

Jaiprakash Associates reported a phenomenal rise in standalone net profit for the quarter ended September 2009. During the quarter, the profit of the company rose 4.28 times to Rs 8,701.90 million from Rs 2,031.30 million in the same quarter last year. Net sales for the quarter for the quarter surged 59.72% to Rs 18,888.50 million, while total income for the quarter jumped 48.64% to Rs 19,125.10 million, when compared with the prior year period.

Allahabad Bank today announced a phenomenal rise in standalone net profit for the quarter ended Sep. 2009. During the quarter, the profit of the company rose 8 times to Rs 3,335.91 million from Rs 416.83 million in the same quarter last year. Interest earned for the quarter rose 10.87% to Rs 20,466.91 million, while total income for the quarter rose 23.99% to Rs 24,515.17 million, when compared with the prior year period.