Small-cap, mid-cap indices outperform Sensex

Volatility ruled the roost as the key benchmark recovered tracking gains in global stocks. The undertone was cautious as investors awaited details of a likely European Union bailout plan for Greece.

The BSE Sensex rose 361.66 points or 2.3% to 16,152.59 in the week ended Thursday, 11 February 2010. The S&P CNX Nifty 108.2 points or 2.3% to 4826.85.

The BSE Mid-Cap index rose 162.37 points or 2.6% to 6,509.74 in the week. The BSE Small-Cap index jumped 229.16 points or 2.8% to 8,303.08. Both these indices outperformed the Sensex.

FII outflow in February 2010 totaled Rs 2252.60 crore (till 10 February 2010). FII had sold equities worth Rs 302.70 crore in January 2010. FII outflow in the calendar year 2010 totaled Rs 2753 crore (till 10 February 2010).

The key benchmark indices logged marginal gains on Monday, 8 February 2010, after swinging sharply either ways in what was a highly volatile trading session. The BSE 30-share Sensex rose 19.96 points or 0.13% to 15,935.61. The S&P CNX Nifty rose 3.15 points or 0.07% to 4760.40.

The key benchmark indices logged decent gains in what was a choppy trading session on Tuesday, 9 February 2010. After suffering an initial setback, the market staged a comeback as Asian stocks and US index futures rose. The BSE 30-share Sensex jumped 106.57 points or 0.67% to 16,042.18. The S&P CNX Nifty rose 32.25 points or 0.68% to 4792.65.

A day after regaining the psychological 16,000 mark, the barometer index BSE Sensex fell below that level on Wednesday, 10 February 2010, on waning risk appetite among foreign investors. The BSE 30-share Sensex fell 120.01 points or 0.75% to 15,922.17. The S&P CNX Nifty fell 35.45 points or 0.74% to 4757.20.

The key benchmark indices surged on Thursday, 11 February 2010 as European leaders gathered to consider a possible aid package for Greece. The BSE 30-share Sensex rose 230.42 points or 1.45% to 16,152.59. The S&P CNX Nifty rose 69.65 points or 1.46% to 4826.85.

Index heavyweight Reliance Industries (RIL) rose 3.3% in the week. RIL recently submitted a $2 billion expression of interest for Value Creation Inc, a Canada-based private firm which holds oil sands assets.

Rate sensitive banking shares rose. The Reserve Bank of India said on Wednesday, 10 February 2010, it will introduce from 1 April 2010 a new base rate to price credit more transparently, replacing the existing benchmark prime lending rate (BPLR). The Reserve Bank of India said the base rate will be the new reference rate for determining lending rates.

India's largest private sector bank by net profit ICICI Bank rose 3.5%. India's largest bank by net profit and branch network State Bank of India rose 1.1%. India's second largest private sector bank by net profit HDFC Bank rose 1.4%.

According to draft guidelines, the RBI has proposed that the actual lending rate charged to borrowers would be the base rate plus borrower-specific charges including product-specific operating cost, credit-risk premium and tenure premium said. The base rate will be applicable for all new loans as well as for old loans that come for renewal. Existing borrowers who want to switch to the new system before the expiry of their contracts should agree on the revised rate structure with the banker, it said. The base rate could also serve as the reference benchmark rate for floating rate loan products, apart from the other external market benchmark rates, it said.

Rate sensitive auto stocks rose on strong vehicle sales in the month of January 2010. India's largest commercial vehicle maker by sales Tata Motors rose 2.2%. India's biggest tractor maker by sales Mahindra & Mahindra (M&M) rose 1.1%.

IT stocks rose on a possible financial rescue plan for debt ridden Greece's economy. Europe is the second largest market for Indian IT firms. India's second largest IT exporter by sales Infosys rose 6.2%. India's third largest software services exporter Wipro rose 2.3%. India's largest software services exporter TCS rose 2.3%.

Fame India surged 27.3% to Rs 64.65 as Reliance Capital Partners, a group firm of Reliance Anil Dhirubhai Ambani Group (ADAG), hiked its to 7.6% through open market purchases since 3 February 2010, when Inox Leisure announced a deal to acquire Fame.