Small-cap, mid-cap indices outperform Sensex

The key benchmark indices edged higher in a truncated week helped by sustained buying by the foreign investors and strong global markets. The stock market remains closed on Friday, 2 April 2010, on account of Good Friday. Foreign institutional investors (FIIs) made a beeline for Indian equities, helping stocks register strong gains. As per data from the stock exchanges, foreign institutional investors (FIIs) bought stocks worth a net Rs 14,792.31 crore in March 2010. Finance secretary Ashok Chawla said on 23 March 2010, that foreign capital flows into India are currently not posing any concern.

The domestic bourses scaled two-year closing high on 29 March 2010. The market gained in two out of the four trading sessions in the week.

Encouraging Q4 March 2010 advance tax figures of top Indian firms, indicating good Q4 March 2010 results also boosted Indian equities. The market also witnessed a strong post-Budget rally driven by sustained buying by foreign funds since the presentation of the Union Budget 2010-2011 on 26 February 2010. Global credit rating agency Standard & Poor's recently revised the outlook on India to stable from negative due to improved government finances.

In February 2009, the rating agency had cut the outlook on India's credit rating from stable to negative, amid concerns of rising fiscal deficit. Two other rating agencies, Moody's and Fitch, already have a stable rating on India. S&P has pegged India's projected economic growth rate at 8% for the year ending March 2011.

The BSE Sensex rose 47.86 points or 0.27% to 17,692.62 in the week ended Thursday, 1 April 2010. The Sensex rose 62.96 points or 0.36% in the quarter ended March 2010, gaining for the fifth quarter in a row. The barometer index vaulted 7,819.27 points or 80.5% in the year ended March 2010 (FY 2010).

The S&P CNX Nifty gained 8.50 points, or 0.16% to 5290.50 in the week.

The BSE Mid-Cap index rose 1.52% and the BSE Small-Cap index gained 3,28% in th week. Both these indices outperformed Sensex.

Food price index rose 16.35% in the year to 20 March 2010, higher than an annual rise of 16.22% in the previous week, government data showed on Thursday. The fuel price index rose 12.75%, higher than an annual rise of 12.68% in the previous week. Fuel costs have risen following a hike in domestic fuel prices and an upswing in world crude prices. The primary articles index was up 13.86% in the year to 20 March 2010.

The manufacturing growth slowed down in March 2010, dropping from a 20-month-record in February 2010, as mounting cost pressures took a toll on expansion in output, a survey released on 1 April 2010 showed. The HSBC Markit Purchasing Managers' Index , based on a survey of 500 companies, fell to 57.8 in March 2010 from 58.5 in February 2010, which was the strongest since June 2008. A reading above 50 means activity is expanding. The new orders index fell to 62.7 in March from 64 in February

Industrial output in February is expected to have grown 16% year-on-year, Industry Secretary said on Wednesday. The output in January grew an annual 16.7%.

Foreign direct investment rose 15.4% to $1.72 billion in February 2010 over February 2009, government said Wednesday.

Exports in February grew 34.8% on year to $16.09 billion, Trade Minister Anand Sharma said on Wednesday. Exports are expected to grow 15-20% in the year that starts on 1 April 2010, Sharma said. Imports, too, maintained momentum growing by 66% to $25 billion underscoring the strong revival in the domestic economy.

The government will sell 63% of its bond issuance for the new fiscal year in the first half, slightly less than expected, giving a near-term respite to satiated bondholders and helping send yields sharply lower. The government on Monday said it will sell Rs 2.87 lakh crore ($64 billion) of bonds in the first half of 2010/11, which starts on 1 April 2010. The bulk of the government's first-half borrowing, or Rs 2 lakh crore, will be in the 10-year and longer segment.

The key benchmark indices closed at their highest level in more than two years on Monday, 29 March 2010, supported by strong global markets. Stocks rose for the fourth day in a row. The BSE 30-share Sensex rose 66.59 points or 0.38% to 17,711.35, its highest closing since 28 February 2008. The S&P CNX Nifty rose 20.85 points or 0.39% to 5302.85, its highest closing since 15 February 2008.

The key benchmarks edged lower on Tuesday, 30 March 2010 as profit taking emerged after the market scaled two-year high on Monday, 29 March 2010. The BSE 30-share Sensex fell 121.18 points or 0.68% to 17,590.17 on Tuesday.

The key benchmark indices edged lower on the last day of the financial year 2010, extending losses for the second straight day as Asian stocks and US index futures fell. The BSE 30-share Sensex fell 62.40 points or 0.35% to 17,527.77 on Wednesday, 31 March 2010.

The key benchmark indices surged on the first day of the new financial year on Thursday, 1 April 2010, snapping a two-day slide, on broad-based buying. Asian, European stocks and US index futures rose. The BSE 30-share Sensex rose 164.85 points or 0.94% to 17,692.62

Index heavyweight Reliance Industries (RIL) fell 0.48% on profit taking after recent strong gains. The stock was volatile. As per the market buzz, RIL's Q4 advance tax surged to Rs 770 crore in Q4 March 2010 from Rs 365 crore a year ago. Reliance Industries on 14 March 2010 announced a sports and entertainment joint venture with IMG Worldwide, a global leader in sports marketing and management. The equal venture, IMG Reliance, will set up modern infrastructure and coaching facilities for sports and create and operate sports and entertainment assets including celebrity management.

Most auto stocks fell on profit taking after recent gains. India's largest tractor maker by sales Mahindra & Mahindra (M&M) fell 0.93%. The company's total vehicle sales rose 20% to 31698 units in March 2010 over March 2009. The sales figures were released during market hours on 1 April 2010.

India's largest car maker by sales Maruti Suzuki India declined 0.39%. The company on 1 April 2010 said total sales rose 11% to 95,123 units in March 2010 over March 2009. The company's total sales rose 29% to 10.18 lakh vehicles in the year ended March 2010 over the year ended March 2009.

India's largest bike maker by sales Hero Honda Motors fell 2.9%. But, India's largest commercial vehicle maker by sales Tata Motors shot up 3.5%

India's largest mobile services provider by sales Bharti Airtel slumped 2.57%. Bharti cinched a deal on Tuesday to buy most of the African operations of Kuwait's Zain for $9 billion, making it the No.2 cellular company on the African continent and setting India's biggest carrier a tough financial and management challenge. The two companies, which entered exclusive talks in mid-February, signed a legally binding definitive agreement in Amsterdam, where Zain's Africa subsidiary is based

India's largest mortgage lender, Housing Development Finance Corporation (HDFC) rose 6.57%. As per recent reports the company plans to rejig its investments in unlisted companies to capture their value. It will transfer shares of select securities to a special purpose vehicle (SPV) and bring in strategic investors in the SPV. HDFC has investments in companies such as Lafarge, Chalet Hotels, IL&FS, IL&FS Education, National Stock Exchange (NSE), L&T Urban Infrastructure and Maruti Countrywide, which it does not consider as strategic to its business.

India's largest engineering and construction firm by sales, L&T, rose 0.87%. The company announced on Wednesday it bagged orders worth Rs 1017 crore. The company said on Tuesday it bagged orders worth Rs 1126 crore for metallurgical, material handling & water sector projects.