Small-cap, mid-cap indices outperform Sensex

The market closed the last truncated week of the year with strong gains after Prime Minister Manmohan Singh said economic growth may accelerate. Prime Minister Singh's forecast in a speech on 28 December 2009, came after the Indian economy expanded 7.9% in the three months ended 30 September 2009, the quickest in six quarters. The growth lagged behind only China among the major world economies.

Foreign funds invested Rs 83,070.09 crore (till 29 December 2009) in Indian equities in 2009, after pulling out Rs 52,987.10 crore last year when the global financial crisis rattled investors and triggered a flight to the safety of bonds and gold. The inflow boosted the Sensex 81.03% in calendar 2009 as investors chased bargains after the market had slumped over half in 2008.

The BSE 30-share Sensex rose 104.20 points or 0.60% to 17,464.81 in the week ended Thursday, 31 December 2009. The S&P CNX Nifty rose 22.65 points or 0.43% to 5,201.05 in the week

The BSE Mid-Cap index outperformed the Sensex, rising 1.15% to 6,717.82. The BSE Small-cap index, too, outperformed the Sensex, rising 2.92% to 8,357.62 in the week.

The bourses were open for trading only for three days. They remained closed on Monday, 28 December 2009 on account of Moharram. The market remains shut on Friday 1 January 2010, on account of the new year holiday.

Key benchmark indices extended gains for the fourth straight session on Tuesday, 29 December 2009, on sustained buying demand for pivotals. Global cues were positive with European stocks and most Asian markets trading firm. The BSE 30-share Sensex rose 40.95 points or 0.24% to 17,401.56. The S&P CNX Nifty rose 9.55 points or 0.18% to 5187.95.

Profit booking in index pivotals following four straight days of gains pulled the key benchmark indices lower in what was a volatile trading session on Wednesday, 30 December 2009. The BSE 30-share Sensex was down 57.74 points or 0.33% to 17,343.82. The S&P CNX Nifty settled 18.50 points or 0.36% lower at 5169.45.

Volatility ruled the roost on Thursday, 31 December 2009, as traders rolled over positions in the derivatives segment, to January 2010 series from the near-month December 2009 series. The December 2009 derivatives contracts expired on Thursday.

India's largest private sector firm by market capitalisation Reliance Industries (RIL) rose 1.32% in the week. RIL has successfully tested the design capacity of its massive eastern offshore Krishna-Godavari basin D6 field production facilities. A flow rate of 80 million standard cubic meters was achieved through the KG-D6 facilities and delivered to the pipeline

Banking stocks rose on expectations of a pick up in credit offtake. According to the latest Reserve Bank of India (RBI) figures, total loans, including food credit loans to Food Corporation of India for foodgrain procurement and non-food credit (all other loans) amounted to Rs 29,41,293.07 crore as on 19 December 2009. This represents a sequential growth of Rs 34,028 crore since 27 November 2009 compared to a growth of Rs 7,698 crore in the whole of November 2009.

India's largest bank by net profit and branch network State Bank of India rose 2.32%. The state-run bank paid advance tax of Rs 1795 crore in Q3 December 2009 versus Rs 1700 crore in Q3 December 2008

India's largest private sector bank by net profit ICICI Bank rose 1.51%. The bank is reportedly raising up to Rs 1200 crore by selling bonds. But, India's second largest private sector bank by net profit HDFC Bank fell 0.66%.

India's largest engineering & construction firm by sales Larsen & Toubro fell 0.17%. The company won two orders totaling Rs 580 crore.

Auto stocks extended recent gains on the back of strong sales in the month of November 2009 and higher advance tax payment in the third quarter.

India's largest tractor marker by sales Mahindra & Mahindra (M&M) advanced 1.78%. After announcing its entry into the medium and heavy commercial space, the company is reportedly making new inroads in the mini truck segment. It is set to launch one tonner Maxximo at the upcoming Auto Expo from its light commercial vehicle (LCV) space.

From two wheeler space, Hero Honda Motors fell 1.04%, while Bajaj Auto rose 3.63%.

India's top truck maker by sales Tata Motors rose 1.62%. The company has reportedly commenced trial production of the first batch of the Nano at the new mother plant at the Sanand facility last week. The company will start commercial production of the 'People's Car' from March 2010 onwards.

Tata Motors had shifted its mother plant to Gujarat last year after facing local protests in West Bengal spearheaded by Trinamool Congress leader Mamata Banerjee.

Telecom stocks rose bargain hunting. The government on Thursday, 31 December 2009, said it will introduce mobile number portability across the country by 31 March 2010, pushing back its introduction by up to 3 months. India's largest mobile services provider by sales Bharti Airtel rose 2.46%. But India's second largest mobile services provider by sales Reliance Communications fell 0.92%.

Mobile Number Portability (MNP), which allows users to retain their number even if they switch operators, was to be introduced in metro cities and the so-called Category A telecom zones from 31 December 2009 and in other areas by March 20, 2010.