BSE Small-Cap, Mid-Cap indices slump

The market tumbled for the third consecutive week as stocks fell across the globe on renewed concerns over debt problems in Spain and Greece. The domestic market also fell on concerns over deficient monsoon and delay in key economic reforms in India. The BSE Sensex declined 319.25 points or 1.86% to 16,839.19. The 50-unit S&P CNX Nifty fell 105.25 points or 2.02% to settle at 5,099.85. The BSE Mid-Cap index slumped 4.80% and the BSE Small Cap index slumped 4.76%. Both these indices underperformed the Sensex. The Sensex has lost 590.79 points or 3.38% in this month so far (till 27 July 2012). The Sensex has jumped 1,384.27 points or 8.95% in calendar 2012 so far (till 27 July 2012). From a 52-week low of 15,135.86 on 20 December 2011, the Sensex has risen 1,703.33 points or 11.25%. From a 52-week high of 18,523.78 on 22 February 2012, the Sensex has lost 1,684.59 points or 9.09%. Foreign institutional investors (FIIs) have stepped up selling of Indian shares. FIIs sold shares worth a net Rs 1180.70 crore on Thursday, 26 July 2012, as per provisional data released by the stock exchanges. Earlier, FIIs offloaded shares worth a net Rs 466.90 crore in secondary equity markets in two trading sessions from 24 July to 25 July 2012 as per Sebi data. Before the recent selling, FIIs made sustained purchases of Indian stocks. FIIs bought shares worth Rs 5580.50 crore from the secondary equity market during 15 trading sessions from 3 July to 23 July 2012 as per Sebi data. The volume of monsoon rain in India in the week ended July 25 was 20% below the long-term average, as rainfall remained deficient in northern and western parts of the country, the India Meteorological Department said on Thursday, 26 July 2012. Total rainfall so far this season is 22% below the long-period average. The monsoon's slow progress across the country has heightened concerns that output of summer-sown crops such as oilseeds, sugar and pulses may fall. A ministerial panel may meet early next week to review the drought-like situation in the country, Farm Minister Sharad Pawar said on Thursday after a meeting with the country's food minister. The monsoon rains--which make up around 70% of India's annual rainfall--are crucial to the nation's agriculture sector and broader economy. More than 60% of the country's farmland is rain-fed. The timing, distribution and quantity of rainfall are all important for crops. The four-month southwest monsoon season that starts from June accounts for almost 70% of total annual moisture that Indian soil receives in a year. The IMD last month predicted that rainfall this monsoon would likely be 96% of the 50-year average, with an error margin of 4%. The Prime Minister's Office said actual rainfall could be at the lower end of that range, which means around 92% of the 50-year average. Trading for the week started on a weak note. Key benchmark indices fell for the second straight trading session on Monday, 23 July 2012, as stocks fell across the globe on renewed concerns over debt problems in Spain and Greece. The BSE Sensex was down 281.09 points or 1.64% to 16,877.35. The S&P CNX Nifty was down 87.15 points or 1.67% to 5,117.95. Key benchmark indices edged higher on Tuesday, 24 July 2012, with data showing that foreign funds remained buyers of Indian stocks on Monday, 23 July 2012, boosting sentiment. The BSE Sensex was up 40.73 points or 0.24% to settle at 16,918.08. The S&P CNX Nifty rose 10.25 points or 0.2% to settle at 5,128.20. Key benchmark indices edged lower to hit their lowest closing level in more than five weeks on Wednesday, 25 July 2012, after provisional data showed that foreign funds pressed sales of Indian stocks on Tuesday, 24 July 2012. The BSE Sensex was down 72.03 points or 0.43% to 16,846.05. The S&P CNX Nifty was down 18.60 points or 0.36% to 5,109.60. Key benchmark indices fell for the second straight day and reached their lowest closing level in more than seven weeks on Thursday, 26 July 2012, on concerns arising from erratic monsoon rains this year. The BSE Sensex lost 206.23 points or 1.22% to settle at 16,639.82. The S&P CNX Nifty lost 66.60 points or 1.3% to settle at 5,043. Key benchmark indices edged higher in volatile trade on Friday, 27 July 2012, as euro zone debt worries eased after European Central Bank (ECB) President Mario Draghi on Thursday, 26 July 2012, said the ECB will do whatever is necessary to protect the euro zone from collapse, raising hopes for action to ease strains for highly indebted euro zone member states facing pressures to seek a bailout. The BSE Sensex was up 199.37 points or 1.20% to 16,839.19. The S&P CNX Nifty was up 56.85 points or 1.13% to 5,099.85. Among the 30 Sensex shares, 23 shares fell and rest rose. State Bank of India was the top Sensex loser last week. The stock tumbled 9.06% to Rs 1941.20. The bank on Thursday, 26 July 2012, said that it has concluded the issue of $1.25 billion Fixed Rate Senior Unsecured Notes having a maturity of 5 years at a coupon of 4.125% payable semi-annually. The bonds will be issued through the bank's London branch on 1 August 2012 and it will be listed on Singapore Stock Exchange, SBI said. State-run power equipment maker Bhel declined 9% to Rs 208.25. The company's order book position declined to Rs 132900 crore as on 30 June 2012 from Rs 134681 crore as on 31 March 2012. Net profit rose 12.92% to Rs 920.90 crore on 16.46% growth in total income to Rs 8805.28 crore in Q1 June 2012 over Q1 June 2011. The company announced the results during trading hours Thursday, 26 July 2012. L&T declined 5.04% to Rs 1319.95. The company's recurring profit after tax rose 19% to Rs 890 crore on 26% growth in gross revenue to Rs 12078 crore in Q1 June 2012 over Q1 June 2011. The company announced Q1 results on 23 July 2012. L&T said the healthy revenue growth in Q1 June 2012 was on the back of a strong order book and good progress in execution of various jobs. International sales constituted 17% of the total revenue in Q1 June 2012, L&T said in a statement. L&T's order inflow jumped 21% to Rs 19594 crore in Q1 June 2012 over Q1 June 2011 despite weak investment sentiment and prevailing global uncertainties, the company said. The major orders came from infrastructure, buildings & factories and power transmission & distribution sectors, L&T said in a statement. L&T's order book stood at Rs 153095 crore as on 30 June 2012. With regard to future business outlook, L&T said that with its enhanced capacities and presence in the diverse sectors, the company is in a good position to harness the opportunities as they emerge. The superior execution capabilities and growing order book provide visibility to sustained revenue growth in the medium term, L&T said in a statement. On the international front, select markets in the Middle East, South East Asia and CIS countries hold promising prospects where the company is strengthening its presence, L&T said in a statement. India's third largest software services exporter by revenues Wipro slipped 7.97% to Rs 334.25. The company issued a muted revenue growth guidance for Q2 September 2012. Wipro has projected a between 0.33% growth to 2.31% growth in revenue from IT services business at $1.52 billion to $1.55 billion in Q2 September 2012 over Q1 June 2012. Wipro on Tuesday said net profit as per International Financial Reporting Standards (IFRS) rose 18% to Rs 1580 crore on 24% rise in total revenue to Rs 10653 crore in Q1 June 2012 over Q1 June 2011 Jindal Steel & Power (JSPL) fell 7.49% to Rs 394.60. The stock hit a 52-week low of Rs 390.05 in intraday trade on Thursday, 26 July 2012. The company's consolidated profit after tax declined 58.6% to Rs 385.48 crore on 19% growth in turnover to Rs 4701.47 crore in Q1 June 2012 over Q1 June 2011. JSPL's consolidated net profit before exceptional items rose 3% to Rs 959.60 crore in Q1 June 2012 over Q1 June 2011. The company announced the results after trading hours on Tuesday, 24 July 2012. Tata Power Company declined 4.97% to Rs 94.60. The company after market hours on Friday, 20 July 2012, announced that it has signed a long term coal supply agreement with PT Antang Gunung Meratus (AGM), a 100% subsidiary of the Indonesian company PT Baramulti Sukses Sarana (BSSR). Further, in order to secure the coal supplies, the company, through its 100% subsidiary Khopoli Investments (Khopoli), has also entered into an agreement which gives Khopoli an option, subject to necessary approvals, to take up to a 26% stake in BSSR. AGM and BSSR own approximately 1 billion tonnes of coal resources in South and East Kalimantan in Indonesia. Speaking on the development, Anil Sardana, Managing Director, Tata Power said, "As a strategy to support our growth agenda, we are happy to have signed this coal supply agreement. It would support our upcoming power projects based on imported coal to be developed over the next 5 years." Tata Power's existing Indonesia presence includes 30% equity stakes (the Purchase) in two major Indonesian thermal coal producers, PT Kaltim Prima Coal and PT Arutmin Indonesia, and a related trading company owned by PT Bumi Resources Tbk (Bumi). As part of the purchase, Tata Power has signed an Offtake Agreement which entitles it to purchase about 10 million tonnes of coal per annum. Additionally, a consortium comprising of Tata Power, Origin Energy and PT Supraco is developing a geothermal project in Indonesia with approximately 240 megawatts of generation capacity. Sterlite Industries (India) fell 3.90% to Rs 100.90. The company said after trading hours on Thursday, 26 July 2012, that its consolidated net profit declined 27% to Rs 1202 crore on 8% growth in net sales/income from operations to Rs 10591 crore in Q1 June 2012 over Q1 June 2011. Sterlite said its earnings before interest, taxation, deprecation and amortization (EBITDA) declined 15% to Rs 2337 crore Q1 June 2012 over Q1 June 2011. Sterlite said higher sales realization on account of steep rupee depreciation was offset by lower metal prices, lower volume of zinc, lower power sales at Balco and higher cost of production. The bottom line was additionally impacted by mark-to-market loss of Rs 217 crore on account of foreign currency loans and higher interest cost of Rs 78 crore, Sterlite said. Depreciation cost jumped 23.33% to Rs 518 crore in Q1 June 2012 over Q1 June 2011 due to the capitalization of new plants at Zinc India operations and Sterlite Energy (SEL), Sterlite said. India's largest car maker by sales Maruti Suzuki India fell 2.96% to Rs 1110.65. The company has reportedly decided to stop using contract workers in direct manufacturing. Maruti last week declared lockout at its Manesar, Haryana plant after labour unrest. Hero MotoCorp shed 3.72% to Rs 2006.85. The company announced at the time of Q1 June 2012 results that consumers in rural and upcountry markets could postpone buying of motorcycles if the monsoon remains weak. Hero MotoCorp's net profit rose 10.31% to Rs 615.46 crore on 9.95% growth in turnover to a record Rs 6247.28 crore in Q1 June 2012 over Q1 June 2011. Hero MotoCorp also said last week that currency volatility is a point of concern and the rupee depreciation is likely to impact the company's margins. Bajaj Auto fell 0.54% to Rs 1582.05. The company at the time of Q1 June 2012 results said that it has undertaken proactive measures like rationalizing the end-user cost of vehicles in Sri Lanka and with these measures the company expects normalcy in exports to resume by end of Q2 September 2012. Bajaj Auto lost exports of about 20,000 units in Sri Lanka in Q1 June 2012 due to introduction of import barriers by that country. The company also lost export of about 25,000 commercial vehicles in Q1 June 2012 due to restrictions by importing countries and due to political unrest in Egypt, Bajaj Auto said in a statement on Wednesday. Bajaj Auto has said that domestic demand for motorcycles remains subdued. India's largest private sector bank by net profit ICICI Bank fell 0.73% to Rs 928.20. The bank's profit after tax jumped 36% to Rs 1815 crore on 32% growth in net interest income to Rs 3193 crore in Q1 June 2012 over Q1 June 2011. ICICI Bank's net interest margin (NIM) improved to 3.01% for Q1 June 2012, from 2.61% for Q1 June 2011. The bank announced the results during trading hours on Friday, 27 July 2012. ICICI Bank's net non-performing assets (NPAs) ratio decreased to 0.61% as on 30 June 2012 from 0.62% as on 31 March 2012. ICICI Bank's savings account deposits increased by 17% year-on-year to Rs 77923 crore as on 30 June 2012. Current account deposits totaled Rs 30754 crore as on 30 June 2012. The CASA ratio was at 40.6% at 30 June 2012. The average CASA ratio remained stable at 39.1% in Q1 June 2012, ICICI Bank said in a statement. ICICI Bank's consolidated profit after tax rose 25% to Rs 2077 crore in Q1 June 2012 over Q1 June 2011. The consolidated return on equity improved from 12% in Q1 June 2011 to 13.3% in Q1 June 2012. Index heavyweight Reliance Industries (RIL) fell 0.31% to Rs 720.40. RIL has bought back 3.66 crore shares for about of Rs 2617.57 crore till 24 July 2012 under its ongoing share buyback program. RIL has set maximum buyback price of Rs 870 per share. The company has set aside Rs 10440 crore for share buyback. The buyback program opened on 1 February 2012 and closes on 19 January 2013. Last month, RIL chairman Mukesh Ambani said at the company's Annual General Meeting in Mumbai that the company's buyback program represents a highly accretive use of cash by the company and it will supplement earnings growth from operations, for higher EPS (earnings per share), in the near future. Index heavyweight and cigarette maker ITC rose 0.59% to Rs 254.40. The company on 26 July 2012 said its net profit jumped 20.21% to Rs 1602.14 crore on 15.34% growth in net sales to Rs 6652.21 crore in Q1 June 2012 over Q1 June 2011. FMCG major Hindustan Unilever (HUL) was the top Sensex gainer last week. The stock rose 4.23% to Rs 464.70. HUL said after market hours on Monday, 23 July 2012, its net profit rose 112.3% to Rs 1331.19 crore on 13.7% growth in net sales to Rs 6250.15 crore in Q1 June 2012 over Q1 June 2011. The stock had hit a record high of Rs 477.90 in intraday trade on Tuesday, 24 July 2012. HUL's profit before interest and tax (PBIT) grew by 30% with PBIT margin improving 180 basis points (bps). Profit after tax but before exceptional items, PAT (bei), grew by 48% to Rs 855 crores during the quarter. HUL said inflationary pressures during the quarter came primarily from currency depreciation. Cost pressures were managed dynamically through judicious pricing coupled with relentless focus on buying efficiencies and cost savings. Overall media intensity was up and A&P was maintained at competitive levels, higher by Rs 187 crore (+160 bps) in the quarter.