BSE Small-Cap, Mid-Cap indices outperform Sensex

Key benchmark indices eked out small gains in a truncated week. Mid-cap and small-cap stocks were in demand. The market rose in two of three trading sessions during the week ended Wednesday, 4 April 2012. The stock market remains closed on Thursday, 5 April 2012, on account of Mahavir Jayanti and again on Friday, 6 April 2012, on account of Good Friday.

The BSE Sensex rose 81.82 points or 0.47% to settle at 17,486.02 in the week ended Wednesday, 4 April 2012. The S&P CNX Nifty rose 27.35 points or 0.51% to 5,322.90.

The BSE Mid-Cap index rose 2% and the BSE Small-Cap index gained 3.25%. Both these indices outperformed the Sensex.




Trading for the week began on positive note. Key benchmark indices advanced on Monday, 2 April 2012, on firm global stocks. The BSE Sensex advanced 73.95 points or 0.42% to settle at 17,478.15

Key benchmark indices logged gains on Tuesday, 3 April 2012, with data showing buying of Indian stocks by foreign institutional investors (FIIs) for the second day in a row supporting sentiment. The Sensex jumped 119.27 points or 0.68% to settle at 17,597.42.

The market snapped three-day winning streak on Wednesday, 4 April 2012, as data showing slowdown in growth in the services sector in March 2012 and weak global stocks hurt sentiment. The BSE Sensex shed 111.40 points or 0.63% to 17,486.02

Among the 30-share Sensex stocks, 18 gained while the rest declined in the week ended Wednesday, 4 April 2012.

Index heavyweight Reliance Industries (RIL) declined 0.15% to Rs 747.10. RIL is seen reporting weak Q4 earnings due to falling refining margins and reduced output from its KG-D6 gas blocks.

RIL early this week said its Jamnagar manufacturing unit is planning to take Maintenance and Inspection (M&I) shutdown of one of the diesel hydro treating unit for approximately three weeks duration from 2 April 2012. Routine activity of catalyst replacement is planned to be carried out during this shutdown and the opportunity will also be utilized to carry out revamp jobs so as to further enhance BS-IV grade diesel production capability from DTA refinery, RIL said. Remaining units of refinery, including crude processing units, are planned to operate at full throughput during this period, RIL said.

India's largest power equipment maker by order book Bharat Heavy Electricals surged 6.46% to Rs 273.55 and was the top weekly gainer. The stock rose after the firm reported good provisional results for the year ended March 2012 during market hours on Tuesday, 3 April 2012. Bhel's provisional net profit rose 14.25% to Rs 6868 crore on 13.76% growth in turnover to Rs 49301 crore in the year ended March 2012 over the year ended March 2011. Bhel's order inflow fell 63.48% to Rs 22096 crore in the year ended March 2012 (FY 2012) over the year ended March 2011 (FY 2011).

Separately, Bhel during market hours on Tuesday, 3 April 2012, said that consequent upon the receipt of 'no-objection' for withdrawal of draft red herring prospectus (DRHP) for follow on public offer (FPO) from Department of Heavy industry/Department of Disinvestment, the board of directors of Bhel at its meeting held on 3 April 2012 has approved the withdrawal of DRHP filed by Bhel with the Securities and Exchange Board of India (Sebi).

India's largest engineering and construction firm L&T gained 2.95%. L&T during trading hours on Wednesday, 4 April 2012, said its Electrical & Automation business has completed the share sale formalities for the acquisition of UK-based Thalest Group, which is engaged in offering integrated platform management system and integrated bridge system solutions for naval warships, mercantile marine ships, vessels and floating systems.

Auto stocks were mixed. India's largest commercial vehicle maker by sales Tata Motors rose 0.89%. Tata Motors' total sales (including exports) of Tata commercial and passenger vehicles in March 2012 were 1,00,414 vehicles, a growth of 20% over 83,363 vehicles sold in March 2011. The company's monthly sales crossed 1,00,000 mark for the first time. The company's domestic sales of Tata commercial and passenger vehicles for March 2012 were 95,047 units, a 23% growth over 77,431 units sold in March last year.

Tata Motors clocked record sales of commercial vehicles and passenger vehicles in the year ended March 2012 (FY 2012).

India's largest utility vehicles and tractors maker by sales Mahindra & Mahindra (M&M) rose 0.37%. The company posted 25% increase in sales at 47,001 units in March 2012 over March 2011. This is the highest ever monthly sales number in the history of the company.

M&M's total tractor sales rose 10.2% to 2.35 lakh units in the year ended March 2012 (FY 2012) over the year ended March 2011 (FY 2011). Domestic tractor sales rose 10% to 2.21 lakh units in FY 2012 over FY 2011. For the month of March 2012, the total tractor sales stood at 17,405 units. Exports for the month registered an impressive growth of 33% at 1,485 units, M&M said. The company said it maintained its leadership position in the tractor industry in FY 2012.

India's largest car maker by sales Maruti Suzuki India fell 2.28%. The company's total sales rose 3.3% to a record 1,25,952 units in March 2012 over March 2011. The company's domestic sales rose 2.1% to a record 1,12,724 units in March 2012 over March 2011.

The country's largest two-wheeler maker Hero MotoCorp slipped 2.15% after company reported muted growth in sales in March 2012. The company reported 2.41% increase in its sales at 5,28,290 units in March 2012 over March 2011.

The country's second largest two-wheeler maker Bajaj Auto shed 2.69% to Rs 1632.80. The company's total sales rose 9% to 3.35 lakh units in March 2012 over March 2011. The company's total sales rose 14% to a record 43.49 lakh units in FY 2012 over FY 2011.

Cigarette maker ITC rose 0.13% to Rs 227.15. The stock hit record high of Rs 228.50 on Wednesday, 4 April 2012. ITC reportedly plans to invest $78.5 million in putting up a new hotel in Colombo, Sri Lanka.

IT pivotals were mixed. India's second largest software services exporter by revenue Infosys slipped 0.51%. The company announces Q4 March 2012 results on 13 April 2012. India's third largest software services exporter by revenues Wipro rose 0.84%.

India's largest software services exporter by revenue Tata Consultancy Services (TCS) rose 0.9%. A US district court has reportedly allowed two former employees of TCS to proceed with a class-action lawsuit against the company over a wage dispute. US District Court Judge Claudia Wilken on Monday, 2 April 2012, permitted the lawsuit which alleges that TCS and its parent Tata Sons wrongfully withheld wages, thus violating employment contracts and California labor laws.

Interest rate sensitive banking stocks rose on expectations that the Reserve Bank of India will start cutting interest rates in the coming months to prop up slowing economy. India's biggest private sector bank in terms of net profit, ICICI Bank, rose 0.36%. India's second largest bank by net profit HDFC Bank gained 1.26%.

India's largest bank by branch network State Bank of India advanced 3.31% to Rs 2164.30. The Executive Committee of the Central Board of the bank, at its meeting held on 30 March 2012 approved the allotment of 3.6 crore shares at an issue price of Rs 2,191.69 per share, to Government of India (GoI) by way of preferential allotment. GoI held 59.4% stake in SBI at end December 2011.

Realty major DLF rose 1.34% after the company said during market hours on Wednesday, 2 April 2012, that credit rating agency ICRA has assigned [ICRA]A rating to the company's bank facilities and non-convertible debentures (NCD) programme.

HDFC (up 0.91%), ONGC (up 2.28%), and NTPC (up 3.1%), edged higher from the Sensex pack. Jindal Steel & Power (down 3.5%), Hindustan Unilever (down 2.53%), and Bharti Airtel (down 2%), edged lower from the Sensex pack.

Foreign institutional investors (FIIs) bought shares worth Rs 332.47 crore on Tuesday, 3 April 2012, as per provisional data from the stock exchanges. Their inflow totaled Rs 1541.06 crore in three sessions from 30 March 2012 to 3 April 2012, as per provisional data from the stock exchanges.

Growth in the Indian services sector slipped to a five-month low in March as optimism about the business outlook in the coming year faded to its weakest level since 2009, a survey showed on Wednesday, 4 April 2012. The HSBC Markit Business Activity index fell sharply to 52.3 in March from 56.5 the previous month, though it remained above the 50 level that divides growth from contraction for a fifth month.

The expansion of the manufacturing sector slowed for a third month in March as growth in new orders eased and costs for raw materials kept rising, a business survey showed on Monday, 2 April 2012. The HSBC manufacturing Purchasing Managers' Index (PMI), compiled by Markit, eased to 54.7 in March from 56.6 in February. In January, the PMI reading was 57.5. The index has now stayed above the 50 mark - which shows growth rather than contraction - for three years.

India's exports grew an annual 4.3% to $24.6 billion in February, while imports rose 20.7% to $39.8 billion, government data showed on Monday, 2 April 2012. The trade deficit widened to $15.2 billion during the month from $14.8 billion in January, while exports between April and February grew 21.4 percent to $267.4 billion.