Sensex ends steady…TCS, HDFC Bank advance

The key Indian equity benchmarks ended with slender losses on Friday, extending its losing steak to a third consecutive trading session. After opening with a positive gap, the equity benchmarks were unable to make much headway and surrendered all the gains in the mid afternoon. Even a positive trend across Asian and European markets failed to lift the sentiment on the Indian bourses. Selling pressure in Realty, Metals, Power and IT stocks dragged the Nifty below the 5250 mark. The Sensex ended at 17,213, down 18 points or 0.1% from the previous close. It had earlier touched a day’s high of 17,342 and a day’s low of 17,182. It opened at 17,269. The NSE Nifty settled at 5227, down 8 points or 0.15%. It touched a day’s low of 5,216 and day’s high of 5,267. Jindal steel, Hindalco, Tata Power, SBI, Infosys, DLF, Axis Bank, JP Associates, Sterlite and BPCL were the notable losers on the Sensex and the Nifty. Hero MotoCorp, TCS, HDFC Bank, ONGC, HCL Tech, ITC, Cipla and Bajaj Auto were among the top gainers on the Nifty. The INDIA VIX on NSE slipped by 2.4% to close at 18.26. It hit a day’s high of 18.71 and a day’s low of 17.62. The market breadth on the BSE was negative, with 1474 stocks ending lower and 1304 stocks closing higher. "Indian markets broke a five-week winning streak this week, as investors locked in some profits amid persistent worries over economic slowdown and its impact on corporate earnings. A weak monsoon and fragile global macro-economic situation have added to the gloom," said Amar Ambani, Head of Research, IIFL. "The Government’s constant dithering on a number of key policy issues continues to play spoilsport as well, notwithstanding some positive comments made by the Prime Minister recently. The markets will remain rangebound unless the Centre springs a pleasant surprise. Markets and economists expect some progress on the policy front post the presidential election. Let’s keep our fingers crossed until then," he said. Inflation data will be the key event next week, along with the slew of earnings announcements and global developments," Ambani said. Infosys was among the notable laggards in the main indices after it came out with disappointing FY13 guidance while TCS beat street estimates handsomely. TCS was up smartly while Wipro shares ended more or less steady. Shares of HDFC Bank gained 1% after the bank reported Q1 FY13 net profit of Rs14.17bn versus Rs10.85bn recorded in the same quarter of last financial year. Net Interest Income (NII) for the reporting quarter stood at R 34.84bn vs Rs. 28.48bn in the corresponding quarter a year earlier. Globally, major Asian indices recovered from session lows after China's second-quarter GDP came in line with estimates. Also, investors are hoping for some more stimulus measures from the Chinese policy makers after Q2 GDP growth hit a three-year low. China’s economy moderated for a six straight quarter in the three months ended June, with GDP touching its weakest in more than three years in the second quarter. GDP eased to 7.6% in the April to June period, down from an 8.1% expansion in the first quarter but matched expectations of economists. The growth rate was the weakest since the first quarter of 2009. For the January-to-June period, the world's second largest economy grew by 7.8%, compared to 9.6% in the same period a year earlier. Meanwhile, the Indian Rupee too advanced today versus the US dollar, in line with a jump in global risk assets after China's second quarter GDP landed in line with forecasts. Blue Star shares surged after a block deal of 25 lakh shares was executed on the counter at Rs 190 per share on BSE. DEN Networks jumped after the company said that an overseas investor, TIAA-CREF Investment Management, has hiked its stake in the company to about 6%. Magma Fincorp extended Thursday's 5.5% gains triggered by the company's strong Q1 results. Strides Arcolab shares advanced further after the company announced that its injectable drug division has formed a joint venture with a Canadian generic drug firm. Volumes jumped at Tube Investments of India counter after the company said it will acquire Shanthi Gears. Shares of Shanthi Gears also rose after Tube Investments' Board of Directors approved the acquisition of promoters' entire 44.12% stake in Shanthi Gears. United Spirits shares fell on profit booking. It had jumped 6.76% in the preceding two sessions. SKS Microfinance shares tumbled after the company said that it expects to incur an operational loss of Rs 300mn to Rs 500mn or even higher in Q1 FY13. CMC extended Thursday's 11.3% rally triggered by the company's strong Q1 FY13 earnings. Telecom stocks rose after the Empowered Group of Ministers on telecom on Thursday, decided to allow mobile phone companies to mortgage airwaves.