Sensex dips 125.21 pts in a week; Smallcap index outperform

Indian stocks dropped for the second consecutive week due to disappointing IIP numbers, weak global cues and sustained profit booking seen in index pivotal. However, the broader markets managed to close stronger for the week. Power and Capital goods index dipped over 2% over the week in the BSE sectoral space followed by Consumer durable index and PSU declined 1.82 and 1.58% respectively. However, Metal, Auto and IT indices gained in the range of 0.58% to 0.37% week-on-week.



Meanwhile, the Index of Industrial Production (IIP) nosedived to 5.6% in August, from 10.6% a year ago, mainly on account of decline in output of capital goods, a sector which reflects fresh investments in the economy.

On the other hand, wholesale price inflation moved up to 8.62% in September, from 8.51% in the previous month, because of rise in prices of certain food and non-food items. The inflation was at 8.51% in August.

The 30 share index, Sensex dropped 125.21 points, or 0.62%, to 20,125.05 in the week ended Oct. 15, 2010. On the other hand, the broad based NSE Nifty declined 40.8 points, or 0.67%, to 6,062.65 in the same period.

Mid-cap stocks dipped 18.91 points, or 0.23%, to 8,311.66 in the week. While small-cap shares rose 117.12 points, or 1.11%, to 10,629.65 during the week.

Result
IT major Infosys Technologies today reported 13.15% growth in consolidated net profit at Rs 17.37 billion for the second quarter ended September 30. The company had a net profit of Rs 15.35 billion in the September quarter of the previous fiscal (2009-10), Infosys said in a filing to the Bombay Stock Exchange. The consolidated revenue of the country`s second largest software exporter rose to Rs 69.47 billion against Rs 55.85 billion over the year-ago period.

Coal India (CIL), world`s largest coal producing company is entering the capital market on Oct. 18, 2010 with an offer for sale of 631.6 million equity shares of Rs 10 each by the government, at a price band of Rs 225-Rs.245 through a 100% book building process. The issue, slated to be the largest primary market offering in the history of the Indian stock markets, will constitute 10% of the post offer paid-up capital of the company and will mop up around Rs 150 billion. A retail discount of 5% is also being contemplated.

The company is planning to invest Rs 27.85 billion to set up 20 coal beneficiation plants with a cumulative capacity of 110 million tons.