BSE Small-Cap, Mid-Cap indices outperform Sensex

The market rose for the fifth consecutive week as foreign funds remained buyers of Indian stocks. Expectations of measures from the government for revival of the slowing economy aided gains on the domestic bourses. The Sensex gained in three out of five trading sessions of the week that ended on Friday, 6 July 2012. The BSE Sensex rose 91.14 points or 0.52% to 17,521.12. The 50-unit S&P CNX Nifty gained 38.05 points or 0.72% to settle at 5,316.95. The BSE Mid-Cap index rose 2.60% and the BSE Small Cap index gained 4.26%. Both these indices outperformed the Sensex. The Sensex has jumped 2,066.20 points or 13.36% in calendar 2012 so far (till 6 July 2012). The Sensex has gained 91.14 points or 0.52% so far in July month. From a 52-week low of 15,135.86 on 20 December 2011, the Sensex has risen 2,385.26 points or 15.75%. From a 52-week high of 19,131.70 on 8 July 2011, the Sensex has lost 1,610.58 points or 8.41%. Foreign institutional investors (FIIs) are buying Indian stocks. FIIs bought shares worth a net Rs 429.22 crore on Thursday, 5 July 2012, as per provisional figures on the stock exchanges. FIIs bought shares worth a net Rs 303.70 crore from the secondary equity markets on Wednesday, 4 July 2012, as per data released by the Securities & Exchange Board of India (Sebi). FIIs had mopped up shares worth a net Rs 557.10 crore from the secondary equity markets on Tuesday, 3 July 2012. FIIs have bought shares worth net Rs 4755.70 crore in July 2012 so far (till 4 July 2012). FIIs sold shares worth net Rs 501.30 crore in June 2012. FIIs have bought shares worth net Rs 46748.80 crore in calendar 2012 so far (till 4 July 2012). There are expectations of measures from the government for revival of the slowing economy. Prime Minister Dr. Manmohan Singh last month said he is chalking out plan for the country's economic revival. Singh last month took additional charge at the finance ministry after Pranab Mukherjee resigned as finance minister on 26 June 2012 to contest the presidential polls scheduled on 19 July 2012. Mr. Mukherjee is the leading contender in the July 19 presidential election, having been nominated by the Congress party-led United Progressive Alliance government for the largely ceremonial post. Trading for the week began on a weak note. Key benchmark indices snapped a four-day rising streak on Monday, 2 July 2012, as investors booked profits. The BSE Sensex was down 31 points or 0.18% to 17,398.98. The S&P CNX Nifty was down 0.30 points or 0.01% to 5,278.60. Key benchmark indices eked out small gains on Tuesday, 3 July 2012, as traders refrained from building large positions ahead of the beginning of the Q1 June 2012 earnings season next week. The BSE Sensex rose 26.73 points or 0.15% to settle at 17,425.71. The S&P CNX Nifty rose 9.35 points or 0.18% to settle at 5,287.95. Key benchmark indices edged higher for the second straight day on Wednesday, 4 July 2012, after data showed that foreign funds remained buyers of Indian stocks on Tuesday, 3 July 2012. The BSE Sensex rose 37.10 points or 0.21% to settle at 17,462.81. The S&P CNX Nifty rose 14.60 points or 0.28% to settle at 5,302.55. Key benchmark indices edged higher for the third consecutive trading session on Thursday, 5 July 2012, after data showed that foreign funds remained buyers of Indian stocks on Wednesday 4 July 2012. The BSE Sensex rose 75.86 points or 0.43% to settle at 17,538.67. The S&P CNX Nifty rose 24.75 points or 0.47% to settle at 5,327.30. Key benchmark indices snapped three day winning streak on Friday, 6 July 2012, as weak global stocks dampened sentiment. The BSE Sensex fell 17.55 points or 0.1% to 17,521.12. The S&P CNX Nifty fell 10.35 points or 0.19% to 5,316.95. Among the 30 Sensex shares, 16 rose and the remaining declined. India's largest listed telecom operator by sales Bharti Airtel topped the Sensex gainers last week. The stock jumped 5.41% to Rs 321.50 on reports cellular services providers will continue to offer third-generation services on a pan-India basis. The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) on Tuesday, 3 July 2012, gave a split verdict in the 3G intra-circle roaming case. Bharti Airtel, Idea Cellular and the unlisted Vodafone will continue to offer third-generation services on a pan-India basis after a two member bench of the telecom disputes tribunal on Tuesday gave a split verdict on a petition filed by wireless operators challenging the telecommunication department's order banning them from forming alliances to offer third-generation roaming services in areas where they don't hold bandwidth. Copper major Sterlite Industries (India) jumped 4.77% to Rs 107.55. Shareholders of Sterlite Industries (India) and iron ore major Sesa Goa in June 2012 approved a plan to combine both the firms into a new company, which will be the world's seventh largest diversified metals and mining conglomerate. The merger proposal won the required majority of shareholders of both the companies. Post the merger, parent Vedanta will hold 58.3% stake in the combined entity, Sesa Sterlite. As per the scheme, Sterlite shareholders will get three shares of Sesa Goa for every five shares held. Cairn India, Hindustan Zinc, Balco, Vedanta Aluminum, Madras Aluminum, Talwandi Sabo Power and Australian Copper Mines will become subsidiaries of Sesa Sterlite after the restructuring. Housing finance major HDFC rose 4.46% to Rs 683.65. The company will announce Q1 June 2012 results on 11 July 2012. India's largest car maker by sales Maruti Suzuki India galloped 4.01% to Rs 1216.70. The company's total sales rose 20.3% to 96,597 units in June 2012 over June 2011. Maruti's domestic sales rose 19.3% to 83,531 units in June 2012 over June 2011. Export sales rose 27.1% to 13,066 units in June 2012 over June 2011. Maruti's total sales rose 5.1% to 2,95,896 units in Q1 June 2012 over Q1 June 2011. Domestic sales rose 5% to 2,63,264 units and exports rose 5.8% to 32,632 in Q1 June 2012 over Q1 June 2011. India's largest utility vehicle maker by sales Mahindra & Mahindra (M&M) rose 3.42% to Rs 731.10. The company on 6 July 2012 said it has tied up with Kenya's Simba Corp. to sell its utility vehicles and pickup trucks in the African nation. M&M will export its sport-utility vehicles Scorpio and XUV500, as well as the Genio and Maxximo pickup trucks to Kenya. The auto maker currently exports to more than 40 countries, including South Africa, Egypt, Australia and other European as well as South American nations. M&M already sells tractors in Kenya through a tie-up with Timsales, and also plans to introduce new vehicles in the country. M&M's sales rose 16% to 41,322 units in June 2012 over June 2011. The Passenger Vehicles segment (which includes the UVs and Verito) has registered a growth of 23%, having sold 19,792 units in June 2012, as against 16,053 units during June 2011. The company announced a 24% rise in its auto sales numbers, which stood at 1,26,029 units during the first quarter of FY 2012-13 as against 1,01,997 during the first quarter of FY 2011-12. M&M's Farm Equipment Sector (FES) maintained its leadership position in the tractor industry in June 2012. Domestic sales in June 2012 stood at 22,493 units, as against 21,552 units during June 2011. Total tractor sales (domestic plus exports) in June 2012 stood at 23,765 units, as against 22,730 units for the same period last year. Exports for the month of June 2012 stood at 1,272 units. Index heavyweight Reliance Industries (RIL) declined 0.43% to Rs 734.30. The company said during market hours on Friday, 6 July 2012, that it has selected Technip as a technology supplier and engineering contractor to implement its Refinery Off-Gas Cracker (ROGC) project. This is part of the expansion project being executed at RIL's Jamnagar refinery and petrochemical complex in Gujarat. The ROGC plant will be amongst the largest ethylene crackers in the world and will be using refinery off-gas as feedstock, RIL said. The products from the plant will be utilised for the new downstream petrochemical plants being built at Jamnagar, RIL said. RIL has bought back 3 crore shares for Rs 2144.73 crore till 22 June 2012 under its ongoing share buyback program. RIL has set a maximum buyback price of Rs 870 for share buyback. 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. Jindal Steel & Power (JSPL) declined 3.06% to Rs 455.15. The stock topped the losers in the BSE Sensex. According to reports, JSPL has suspended operations at its iron ore mine at El Mutun in Bolivia as last-ditch talks with the Bolivian government to rescue the struggling project have failed. El Mutun is a vast iron ore deposit on Bolivia's border with Brazil estimated to contain 40 billion tons of ore. In 2006, JSPL and Bolivian President Evo Morales signed a $2.1 billion contract to develop the mine and build a steel mill near the river port of Puerto Suarez. But the ambitious project once showcased by Mr. Morales as an example of how his government and multinational companies could work as equal partners has been stalled for years. The government accuses JSPL of violating the terms of the contract by not meeting its investment schedule. On the other hand, JSPL has blamed the Bolivian government for failing to provide the gas and infrastructure necessary to move the project ahead. Motorcycle maker Hero MotoCorp (HMCL) dropped 2.68% to Rs 2,084.65. The company early this week introduced a 125 cubic-centimeter motorcycle Ignitor. The Ignitor motorcycle will be available in two versions, costing Rs 55,900 and Rs 57,900 at dealerships in New Delhi, the company said. The latest model follows the 110cc Maestro scooter, which was launched in March, and the 150cc Impulse motorcycle, introduced last October. The Ignitor will add to the Glamour and the Super Splendor -- the two 125cc motorcycle models sold currently by Hero MotoCorp. Hero MotoCorp sells motorcycles with 100cc to 225cc engines. It also sells two scooter models, including the Maestro. HMCL's total sales rose 4.26% to 5,34,091 units in June 2012 over June 2011. With sales of 5,34,091 units in the month of June, HMCL's cumulative sales for the first quarter (April-June) of this financial year (2012-13) has touched 16,42,292 units -- its highest-ever sales in any single quarter. India's largest software services exporter by revenues, Tata Consultancy Services (TCS), fell 2.45% to Rs 1246.20. The company announces Q1 results on 12 July 2012. India's second largest software services exporter by revenues, Infosys, declined 2.35% to Rs 2443.85. The company announces Q1 results on 12 July 2012. India's third largest software services exporter by revenue, Wipro, dropped 1.80% to Rs 392.10. India's largest cigarette maker by sales ITC fell 2.41% to Rs 252.70 on reports that the Uttar Pradesh government has hiked value added tax (VAT) on tobacco products in the state. FMCG major Hindustan Unilever (HUL) fell 2.01% to Rs 445.20.