Market slips on weak GDP data, euro-zone debt worries

The market fell last week after India's weak economic growth spooked investors. Concerns about Greece's potential exit from the euro-zone also made investors jittery. Trading was volatile throughout the week as the May 2012 derivatives contracts expired on Thursday, 31 May 2012. The barometer index, BSE Sensex fell 252.66 points or 1.56% to 15,965.16. The 50-unit S&P CNX Nifty fell 78.80 points or 1.60% to 4,841.60. The BSE Mid-Cap index outperformed the Sensex, falling 1.34% and the BSE Small-Cap index underperformed the Sensex, falling 1.96%. Foreign institutional investors (FIIs) sold shares worth net Rs 347.10 crore in May 2012 so far (till 30 May 2012). FIIs had sold shares worth net Rs 1109.10 crore in April 2012. FIIs have bought shares worth net Rs 42494.40 crore in calendar 2012 so far (till 30 May 2012). FIIs had offloaded shares worth a net Rs 2714.20 crore in 2011. India's economy grew at a much lower than expected annual rate of 5.3% in Q4 March 2012, largely due to a decline in manufacturing output, the latest data showed. The data showed that the manufacturing sector shrank 0.3% in the quarter compared with a year earlier. The farm sector grew 1.7%. GDP growth for the year ended March 2012 was at 6.5%, lower than the government's projection of a 6.9% expansion. Growth in the eight core industries slowed in April, pointing to more stress for the industrial sector, which is witnessing a prolonged phase of sluggishness. Eight core industries spanning coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity, rose 2.2% in April, lower than the 4.2% posted in the same month last year. The core sector accounts for 37.9% in the index for industrial production India's manufacturing sector kept up its steady expansion in May, with fast-rising output evened out by slowing growth of domestic order books, a business survey showed on Friday. The HSBC manufacturing Purchasing Managers' Index (PMI), compiled by Markit, slipped marginally to 54.8 in May from 54.9 in April. It has stayed above the 50 mark, that separates growth from contraction, for a little over three years now. The survey's output index rose to 56.4 in May from 56.1 in April, while the employment sub-index rose to its highest level in ten months. Trading for the week began on a positive note. Key benchmark indices surged on Monday, 28 May 2012, as world stocks rose after opinion polls in Greece showed a lead for a party favoring the country's economic bailout in upcoming elections and amid expectations for a policy stimulus in China to support growth. China is the world's second biggest economy after the US. The BSE Sensex jumped 199.02 points or 1.23% to settle at 16,416.84. The S&P CNX Nifty surged 65.25 points or 1.33% to settle at 4,985.65. Key benchmark indices eked out small gains in choppy trade on Tuesday, 29 May 2012. The BSE Sensex advanced 21.74 points or 0.13% to settle at 16,438.58. The S&P CNX Nifty rose 4.45 points or 0.09% to settle at 4,990.10. Key benchmark indices dropped in choppy trade on Wednesday, 30 May 2012, as stocks fell across the world stocks amid incessant worries about Spain's finances and the fallout from the European debt crisis. The BSE Sensex lost 126.43 points or 0.77% to 16,312.15. The S&P CNX Nifty lost 39.35 points or 0.79% to 4,950.75. Key benchmark indices edged lower in choppy trade on Thursday, 31 May 2012, as traders rolled over positions in the futures & options (F&O) segment from the near-month May 2012 series to June 2012 series. The market staged a strong intraday recovery on hopes the Reserve Bank of India (RBI) will cut interest rates to revive growth after the latest data showed a sharp deceleration in GDP growth in Q4 March 2012. Gains in European shares aided recovery on the domestic bourses. The BSE Sensex lost 93.62 points or 0.57% to 16,218.53. The S&P CNX Nifty shed 26.50 points or 0.54% to 4,924.25. Key benchmark indices tumbled on Friday, 1 June 2012, as investors dumped risky assets after data showing downbeat manufacturing activity from China to Europe raised doubts about global economic recovery. Reports indicating that monsoon rains over India's mainland will be delayed by about four days also weighed on sentiment. The BSE Sensex was down 253.37 points or 1.56% to 15,965.16. The S&P CNX Nifty was down 82.65 points or 1.68% to 4,841.60. Among the 30 Sensex shares, 18 stocks declined and the remaining shares rose. India's largest commercial vehicle maker by sales Tata Motors tumbled 16.65% last week to Rs 224.50. It was the top loser in the Sensex pack. Tata Motors' consolidated net profit jumped 136.35% to Rs 6234 crore on 44.3% growth in revenue (net of excise) to Rs 50908 crore in Q4 March 2012 over Q4 March 2011. The company announced the results after trading hours on Tuesday, 29 May 2011. Tata Motors' sales (including exports) of commercial and passenger vehicles for FY 2011-12, stood at 926,353 units, representing a growth of 10.7% as compared to the corresponding period last year. In the domestic market, the company's commercial vehicles sales for the quarter ended March 31, 2012, stood at 1,55,672 units, an increase of 16.2% over the corresponding period last year. The commercial vehicles sales during FY 2011-12 increased by 15.7% to 530,204 units, as compared to the corresponding period last year. The company's market share in commercial vehicles was 59.4% for FY 2011-12. Passenger vehicles, including Fiat and Jaguar and Land Rover vehicles distributed in India, grew by 18.1% to 1,12,470 units in the domestic market for the quarter ended March 31, 2012, as compared to the corresponding period last year. Sales for FY 2011-12 grew by 4% to 3,33,044 units, as compared to the corresponding period last year. Focused marketing initiatives and network actions have positively influenced sales. The market share in passenger vehicles stood at 13.1% for FY 2011-12 largely driven by sales in the recent quarters. The market share in passenger vehicles for Q4 FY 2012 stood at 14.2%. Jindal Steel & Power tumbled 6% to Rs 429.05. It hit a 52-week low of Rs 425 in intraday Friday, 1 June 2012. State-run ONGC fell 4.20% on concerns about the company's high subsidy burden. ONGC's gross subsidy rose 16.7% to Rs 14170 crore in Q4 March 2012 over Q4 March 2011. The company's gross subsidy jumped 78.6% to Rs 44466 crore in the year ended March 2012 over the year ended March 2011. ONGC's net profit surged 102% to Rs 5644 crore on 22% growth in sales income to Rs 18976 crore in Q4 March 2012 over Q4 March 2011. The company announced the results after trading hours on Tuesday, 29 May 2012. The company has notified two new discoveries -- one gas discovery and one oil discovery. Three state-run upstream oil firms -- Oil India, ONGC and GAIL (India) -- share part of the under-recoveries of state-run oil refining-cum-market firms arising from the government-imposed price caps on three key fuels -- diesel, LPG for domestic use and kerosene sold through the public distribution system. Small-car major Maruti Suzuki India shed 3.86% to Rs 1,073.90. The company said during market hours on Friday, 1 June 2012, that its total sales declined 5% to 98,884 units in May 2012 over May 2011. Realty major DLF fell 3.21% to Rs 182.40. The company said after market hours on Wednesday that consolidated net profit fell 38.55% to Rs 211.70 crore on 4% fall revenue to Rs 2747 crore in Q4 March 2012 over Q4 March 2011. Higher base effect was partly responsible for the decline in bottom line. DLF said consolidated net profit of Rs 345 crore in Q4 March 2011 included one-time gain of Rs 72 crore. Earnings before interest, taxation, depreciation and amortization (EBITDA) rose 9% to Rs 928 crore in Q4 March 2012 over Q4 March 2011. Consolidated net profit declined 27% from Rs 1639 crore on 1% growth in revenue to Rs 10224 crore in the year ended March 2012 (FY 2012) over the year ended March 2011 (FY 2011). Sterlite Industries (down 5.79%), Larsen & Toubro (down 4.37%) and ICICI Bank (down 4.19%), edged lower from the Sensex pack. Index heavyweight Reliance Industries (RIL) declined 1.20% to Rs 683.70. RIL bought back 8.2 lakh shares at average price of Rs 700.226 per share on Monday, 28 May 2012. The company cumulatively bought back a total of 2.09 crore till 28 May 2012 under the share buyback programme. RIL recently said it has selected Phillips 66's E-Gas technology for its planned gasification plants at Jamnagar in Gujarat. The planned gasification plants at Jamnagar will be among the largest in the world and will process petroleum coke and coal into synthesis gas utilizing the E-Gas technology, RIL said in a statement. The synthesis gas will be used as a feedstock for a new chemical complex and will fuel the Jamnagar refinery's existing gas turbine power generation units, RIL said in a statement. Hindalco Industries jumped 4.11% to Rs 116.40 on reports the government has removed roadblocks to coal mining by the company. A group of ministers recommended to the cabinet on Wednesday that Mahan coal block for captive use by Hindalco and Essar should be given forest clearance, subject to some conditions. The project has been mired in controversy after the Comptroller and Auditor General of India said in a leaked draft report that the government had given undue benefits to private companies by handing out coal blocks, a charge vehemently denied by the coal ministry and Prime Minister Manmohan Singh. Tata Power (up 2.69%), Coal India (up 2.57%), Wipro (up 2.20%), NTPC (up 1.76%), State Bank of India (up 1.06%), M&M (up 1.05%), ITC (up 0.88%), Bharti Airtel (up 0.77%), Infosys (up 0.67%), TCS (up 0.26%) and Bajaj Auto (up 0.21%), edged higher from the Sensex pack.