Weekly: Nifty jumps 5% on rate cut speculation

It was a wonderful week as desperate investors snapped up beaten down shares on hope of emergency monetary action. While the Australian and Chinese central banks did cut rates, lack of commitment from the ECB and the Fed left investors dismayed towards the end. Another wave of dismal economic reports out of the eurozone coupled with yet another downgrade for Spain failed to reduce the enthusiasm. However, things did cool down substantially on Friday in the wake of Fed chairman Ben Bernanke’s snub. The NSE Nifty surged ~5% this week to close at 5068, while the Sensex jumped 4.7% to close at 16719. The Banking, Auto, Realty and the Oil & Gas stocks were among the top gainers. The Chinese rate cut triggered speculation about Saturday’s data points. Tension also prevails over the precarious fiscal health of Spain and its fragile banks. Greek elections on June 17 will start playing on investors’ minds from next week. The following couple of weeks also has key events lined up, especially the FOMC meet and G-20 summit. For India, next week will be important, as the Government will release the latest IIP and inflation reports. The two data points could well have a bearing on the outcome of the RBI’s June 18 policy meeting. Also Read...Nifty closes above 5050...Sensex rises on late recovery Sensex top gainers: The top gainers in the Sensex were Reliance Infra (up 17%), Larsen & Toubro (up 15.4%), Reliance Capital (up 13.8%), Reliance Power (up 10.3%) and Hero Motocorp (up 10.1%). Sensex losers: Ranbaxy Labs lost 0.6% during the week. The BSE IT Index (up 1.2%):The top gainers in the IT sector sector were Financial Tech (up 7.3%), Satyam Computer (up 4.1%), Sasken Communication (up 3.2%), Oracle Financial (up 3.1%) and HCL Tech (up 1.7%) Mphasis lost 3.9% during the week. The BSE Healthcare Index (up 1.2%): The top gainers in the Pharma space were Panacea Biotec (up 16.1%), Fresenius Kabi (up 11.1%), Wockhardt (up 8.4%), Dishman Pharma (up 7.9%) and Glenmark Pharma (up 5.1%). The top losers were Ipca Labs (down 1.2%) and Ranbaxy Labs (down 0.6%). The BSE Banking Index (up 7.8%):The top gainers in the banking space were Union Bank Of India (up 10.1%), Karnataka Bank (up 10.1%), Bank Of Baroda (up 10%), HDFC Bank (up 9.9%) and Axis Bank (up 8.8%). The BSE Auto Index (up 6%): The top gainers in the auto space were Hero Motocorp (up 10.1%), Hindustan Motors (up 8.1%), M&M (up 6.8%), Tata Motors (up 6.5%) and Ashok Leyland (up 6.2%). Eicher Motors lost 3.7% during the week. The BSE Oil & Gas Index (up 5%):The top gainers in the oil & gas space were Hindustan Oil (up 12.2%), Essar Oil (up 8.6%), Great Offshore (up 8.4%), Reliance Industries (up 6.5%) and Gujarat NRE Coke (up 5.6%). The top losers were GSPL (down 6.9%), Chennai Petroleum (down 3.2%), Indian Oil Corp (down 3%), Shiv-Vani Oil & (down 2.4%) and MRPL (down 1.9%). The Cement Sector: The top gainers in the cement sector were Shree Cement (up 6.7%), Madras Cements (up 5.2%), Gujarat Sidhee (up 4.7%), JK Cements (up 4.1%) and Grasim Inds (up 2.7%). The top losers were Ultratech Cement (down 4.6%), Kakatiya Cement (down 3.2%), India Cements (down 2.9%), Dalmia Cement (down 2%) and Birla Corp (down 0.4%). The Telecom Sector: The top gainers in the telecom space were WWIL (up 7.3%), TTML (up 6.6%), Himachal Futuristic (up 6.3%), RCom (up 5.6%) and Idea Cellular (up 3.7%). The top losers were Gemini Comm (down 9.1%) and Shyam Telecom (down 0.2%). The Realty Sector (up 6.3%):The top gainers in the real estate space were Peninsula Land (up 21.7%), HDIL (up 14.5%), Sobha Developers (up 11.1%), DLF (up 7.6%) and Unitech (up 6.6%). The top losers were Mahindra Lifespace (down 0.3%) and Parsvnath (down 0.2%). The Metals sector (up 4%):The top gainers in the metals sector were Tata Sponge (up 7%), JSW Steel (up 6.7%), Ispat Industries (up 5.1%), SAIL (up 3.9%) and Bhushan Steel (up 3.6%). Tata Metaliks slipped 2.2% during the week.