Choppy trading week ends with a loss

The market fell last week after a dip in India's industrial growth, weak global markets and a massive earthquake in Indonesia that triggered tsunami fears in the Asian region, including India, dampened investor sentiment. Trading was volatile throughout the week.

The Sensex fell 391.51 points or 2.24% to 17,094.51 in the week ended Friday, 13 April 2012. The S&P CNX Nifty fell 115.45 points or 2.17% to 5,207.45.

The BSE Mid-Cap index fell 2.10% and the BSE Small-Cap index fell 0.67%. Both these indices outperformed the Sensex.



Foreign institutional investors (FIIs) bought shares worth net Rs 137.90 crore in April 2012 so far (till 11 April 2012). FIIs have bought shares worth net Rs 44088.60 crore in calendar 2012 so far (till 11 April 2012).

Industrial production rose by a smaller-than-expected 4.1% in February 2012, with the government also sharply revising downward the industrial production growth for January 2012 citing wrong sugar output data. Industrial production growth for January was revised downward to 1.14% from the 6.8% expansion reported earlier.

Manufacturing output, which has a 75.5% weight in the index of industrial production, rose 4% from a year earlier in February. It had risen a revised 1.4% on year in January compared with 8.5% reported earlier. Electricity production increased 8% from a year earlier in February while capital goods output rose 10.6%.

The massive Indonesian quake on Wednesday (11 April 2012) afternoon shook several states and Union territories along the eastern coast, triggering a tsunami alert across Andaman & Nicobar Islands, Tamil Nadu, Kerala, Orissa and Andhra Pradesh. However, the tsunami alert was withdrawn in the evening. The 8.6-magnitude quake hit 431 kilometre off the city of Banda Aceh, Indonesia at mid-afternoon, and was followed by another undersea quake measured at 8.2, the US Geological Survey said.

Trading for the week began on a weak note. Key benchmark indices fell on Monday, 9 April 2012. as weak Asian stocks and lower US index futures hurt sentiment. The BSE Sensex fell 263.88 points or 1.51% to settle at 17,222.14. The S&P CNX Nifty fell 88.50 points or 1.66% to 5,234.40.

Key benchmark indices eked out small gains on Tuesday, 10 April 2012, on reports the monsoon rains, crucial to farm output, will arrive in time this year. The BSE Sensex advanced 21.70 points or 0.13% to settle at 17,243.84. The S&P CNX Nifty advanced 9.20 points or 0.18% to settle at 5,243.60.

Key benchmark indices edged lower on Wednesday, 11 April 2012, after an earthquake of 8.6 magnitude struck Indonesia at mid-afternoon. Nevertheless, the market staged an intraday rebound in volatile late trade on higher European stocks. The BSE Sensex shed 44.44 points or 0.26% to settle at 17,199.40. The S&P CNX Nifty shed 16.75 points or 0.32% to settle at 5,226.85.

Amid a volatile trading session, key benchmark indices managed to edge higher on Thursday, 12 April 2012, on speculation that the Reserve Bank of India (RBI) will cut its key policy rate at its monetary policy review early next week to spur economic growth after the latest data showed that industrial production grew by lower-than-expected 4.1% in February 2012. The BSE Sensex rose 133.22 points or 0.77% to 17,332.62. The S&P CNX Nifty rose 50 points or 0.96% to 5,276.85.

Key benchmark indices declined to hit lowest level in two weeks on Friday, 13 April 2012, as weak Q4 earnings by IT bellwether Infosys and subdued European stocks dampened sentiment. The BSE Sensex was down 238.11 points or 1.37% to 17,094.51, its lowest closing level since 29 March 2012. The S&P CNX Nifty was down 69.40 points or 1.32% to 5,207.45, its lowest closing level since 29 March 2012.

Among the 30 Sensex shares, 17 declined and the rest rose.

IT bellwether Infosys was the top Sensex loser last week. It tumbled 15.69% to Rs 2,403.30. The company announced before market hours on Friday, 13 April 2012, that as per International Financial Reporting Standards (IFRS) its consolidated net profit after tax fell 2.4% to Rs 2316 crore on 4.8% decline in revenue to Rs 8852 crore in Q4 March 2012 over Q3 December 2011. Earnings per share (EPS) declined 2.3% to Rs 40.54 in Q4 March 2012 over Q3 December 2011.

The company said that its consolidated revenues as per IFRS are expected to be in the range of Rs 9011 crore and Rs 9100 crore a growth of 20.4% to 21.6% in Q1 June 2012 over Q1 June 2011. EPS is expected to be Rs 36.89 in Q1 June 2012. The consolidated revenues are expected to be in the range of Rs 38431 crore and Rs 39136 crore; a growth of 13.9% to 16.0% in financial year ended March 2013 (FY 2013) over the financial year ended March 2012 (FY 2012), EPS is expected to be in the range Rs 158.76 to Rs 161.41, a growth of 9.1% to 10.9% in FY 2013 over FY 2012.

Infosys said that the board of directors of the company at its meeting held on 13 April 2012, has recommended a final dividend of Rs 22 per share and a special dividend (10 years of Infosys BPO operations) of Rs 10 per share.

The year ahead looks challenging for the IT services industry, with slow recovery in the global markets, said S. D. Shibulal, CEO and Managing Director. We are executing on our Infosys 3.0 strategy which is meant to deliver high quality growth in the medium to long term. We are making investments and have put in place a structure to deliver on this strategy, he said.

Other IT pivotals too declined. India's largest software services exporter by revenue Tata Consultancy Services (TCS) shed 9.23% to Rs 1,069.55. India's third largest software services exporter by revenues Wipro fell 4.91% to Rs 420.95.

India's largest engineering and construction firm, L&T, fell 4.71% to Rs 1,281.95. L&T during trading hours on Monday (9 April 2012) said that L&T Construction, part of the L&T conglomerate, has commissioned India's largest solar photo voltaic based power plant (40 MWp) owned by Reliance Power at Dhursar village in Jaisalmer district of Rajasthan. With the commissioning of this plant, L&T Construction has installed 114 megawatts (MW) of utility scale solar PV power plants over the last fiscal -- a benchmark in India's solar EPC industry, L&T said.

L&T last week 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.

Hindalco Industries (down 6.35% to Rs 124.65), Bhel (down 5.59% to Rs 258.25), Jindal Steel & Power (down 5.34% to Rs 497.80), Tata Steel (down 5.26% to Rs 449.75), ONGC (down 4.59% to Rs 260.85), GAIL (India) (down 4.2% to Rs 355.75), Sterlite Industries (down 3.71% to Rs 106.50), DLF (down 3.11% to Rs 197.85), ICICI Bank (down 2.9% to Rs 864.65) and Bharti Airtel (down 2.29% to Rs 322.45), edged lower from the Sensex pack.

FMCG stocks moved up on reports that monsoon may arrive on time this year. FMCG major Hindustan Unilever (HUL) rose 6.14% to Rs 424.10. The stock hit a record high of Rs 427.70 on Friday, 13 April 2012.

HUL and entities of Piramal Realty (Ajay Piramal Group) have signed an agreement for assignment of HUL's leasehold rights of the land and building named "Gulita" situated at Worli Sea Face, Mumbai, for a transaction value of Rs 452.50 crore. The consideration includes both fixed and variable components, HUL said after trading hours on Wednesday, 4 April 2012.

Cigarette maker ITC rose 3.98% to Rs 236.20. The stock hit a record high of Rs 240.80 on Friday, 13 April 2012.

Report suggested that conditions indicate that the monsoon season will arrive in India by the first week of June 2012, which is considered on time. FMCG firms derive substantial sales from rural India. Good monsoon may boost farm incomes and consumer spending. India achieved a bumper farm output in 2011 largely because of sufficient monsoon rains.

Index heavyweight Reliance Industries (RIL) rose 0.56% to Rs 751.25. The stock had risen 1.36% on Thursday (12 April 2012) after the company said gas output is normal at its KG D6 block off the east coast after Wednesday's quake in Indonesia. RIL is seen reporting weak Q4 earnings due to falling refining margins and reduced output from its KG-D6 gas blocks.

RIL early last 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.

Sun Pharmaceuticals Industries (up 3.94% to Rs 586.40), Tata Motors (up 3.94% to Rs 289.10), Cipla (up 2.61% to Rs 313.95), Hero MotoCorp (up 2.36% to Rs 2058.10), State Bank of India (up 2.18% to Rs 2211.45), Tata Power (up 1.98% to Rs 102.95), HDFC Bank (up 0.69% to Rs 530.25), Bajaj Auto (up 0.48% to Rs 1640.70), Maruti Suzuki India (up 0.38% to Rs 1323.35) and HDFC (up 0.05% to Rs 680.10), edged higher from the Sensex pack.