BSE Small-Cap, Mid-Cap indices slide over 1% each

Key benchmark indices logged small declines in the week ended Friday, 26 October 2012 weighed by global growth jitters. The market logged gains in two of four trading sessions in a truncated week. The BSE Mid-Cap and Small-Cap indices shed over 1% each. Among stock-specific activity, shares of private sector banking giant ICICI Bank hit 52-week high. India's largest engineering and construction firm by sales L&T struck a 52-week high. Leading tractor maker M&M scaled a record high. Foreign institutional investors (FIIs) have bought shares worth net Rs 12006.60 crore in October 2012 so far (till 23 October 2012). They had purchased shares worth net Rs 19261.50 crore in September 2012. FIIs have bought shares worth net Rs 94337.40 crore in calendar 2012 so far (till 23 October 2012). FIIs offloaded shares worth a net Rs 2714.20 crore in 2011. The BSE Sensex fell 56.97 points or 0.30% to 18,625.34 in the week ended Friday, 26 October 2012. The 50-unit S&P CNX Nifty declined 19.95 points or 0.35% to settle at 5,664.30. The BSE Mid-Cap index lost 1.03% and the BSE Small Cap index slipped 1.16%. Both these indices underperformed the Sensex. Trading for the week began on a positive note as the key benchmark indices edged higher on Monday, 22 October 2012 as European stocks rose on relief over weekend regional elections in Spain. The BSE Sensex jumped 111.13 points or 0.59% to settle at 18,793.44. Key benchmark indices edged lower on Tuesday, 23 October 2012 as World stocks fell after Moody's Investors Service on Monday, 22 October 2012, lowered credit ratings on five Spanish regions. The BSE Sensex lost 83.42 points or 0.44% to settle at 18,710.02. The stock market remained closed on Wednesday, 24 October 2012, on account of Dussera. Key benchmark indices finished higher on Thursday, 25 October 2012 after the Federal Open Market Committee (FOMC) said at the end of a two-day policy meeting on US interest rates on Wednesday, 24 October 2012, that it will stick to its loose monetary policy. US is the world's biggest economy. The market was volatile as traders rolled over positions in the futures & options (F&O) segment from the near-month October 2012 series to November 2012 series. The October 2012 derivatives contracts expired on Thursday, 25 October 2012. The BSE Sensex advanced 48.61 points or 0.26% to settle at 18,758.63. Markets edged lower on Friday, 26 October 2012 as stocks fell across the globe on global growth jitters and after weaker-than-expected fourth-quarter results announced by US tech giant Apple Inc. after trading hours in the US on Thursday, 25 October 2012. The BSE Sensex was down 133.29 points or 0.71% to 18,625.34. Among the 30 Sensex shares, 16 shares declined and the remaining shares rose in the week ended Friday, 26 October 2012. India's largest sponge iron steel maker by capacity Jindal Steel & Power lost 5.22% to Rs 385.60 and was the top loser among the Sensex pack. Index heavyweight and cigarette maker ITC lost 3.88% to Rs 285.95. The Ministry of Health and Family Welfare early this week notified new pictorial health warnings to be depicted on tobacco product packs which will come into effect from 1 April 2013. The Ministry of Health and Family Welfare said in a statement on 22 October 2012 that three sets of warnings each have been notified for smoking as well as smokeless forms of tobacco product packages. The well-designed health warnings and messages are part of a range of measures to communicate health risks due to tobacco use. Pictorial health warnings communicate health risks in a visible way, provoke a greater emotional response and increase the motivation of tobacco users to quit and to decrease their tobacco consumption, the ministry's statement said. Graphic warning labels have a greater impact than text-only labels and can be recognized by low-literacy audiences and children, the statement added. Shares of ITC had hit record high on 19 October 2012 after the company announced strong Q2 results during trading hours on that day. The stock had hit record high of Rs 299.20 on Friday, 19 October 2012. ITC's net profit after net profit jumped 21.27% to Rs 1836.42 crore on 18.65% growth in income from operations to Rs 7226.58 crore in Q2 September 2012 over Q2 September 2011. FMCG major Hindustan Lever (HUL) dropped 2.61%. During trading hours on Friday, 26 October 2012, HUL said growth in Q2 September 2012 was adversely impacted by the budget rationalization in the Canteen Stores Department (CSD). HUL's profit after tax but before exceptional items, PAT (bei), jumped 23% to Rs 806 crores in Q2 September 2012 over Q2 September 2011. Net profit rose 17% to Rs 807 crore in Q2 September 2012 over Q2 September 2011. HUL said its profit before interest and tax (PBIT) grew by 19% with PBIT margin improving 100 basis points in Q2 September 2012. During the quarter, the domestic consumer business sustained its robust performance growing at 16% with underlying volume growth of 7%, HUL said. The FMCG giant said that operating context remained challenging during the quarter with a volatile cost environment and heightened competitive intensity. HUL said its advertisement and sales promotion expenses rose by Rs 118 crore in Q2 September 2012. Commenting on the Q2 results, Harish Manwani, Chairman, HUL said: "In a volatile and uncertain environment, we continue to sustain our growth momentum while steadily improving our margins. Our consistent performance is being driven by a relentless focus on brand building, bigger and better innovations and disciplined execution in the marketplace." The board of directors of Hindustan Unilever on Friday, 26 October 2012, declared interim dividend of Rs 4.50 per share for the year ending 31 March 2013 (FY 2013). The board also declared special dividend of Rs 8 per share to be paid to shareholders on record date as of 2 November 2012. The dividend will be paid to shareholders on or after 16 November 2012. The payment of special dividend will be made in addition to the interim dividend of Rs 4.5 per share for FY 2013, HUL said. HUL said the payout for the special dividend will be made out of the accumulated Profit & Loss Account balance and the exceptional income generated primarily through the sale of properties in the first half of FY 2013 and will be funded from the cash balances of the company. Commenting on the special dividend Mr. Manwani said: "HUL has a robust Balance Sheet and a track record of strong profit and cash generation. The payment of the special dividend provides a cash return to our shareholders from accumulated profits built up from the company's consistent performance over the last few years and the exceptional income generated from the sale of properties in the first half of this year." India's largest bank by branch network State Bank of India (SBI) fell 3.70% Index heavyweight Reliance Industries (RIL) declined 0.52% to Rs 799. RIL's net profit declined 5.7% to Rs 5376 crore on 15.4% growth in turnover to Rs 93265 crore in Q2 September 2012 over Q2 September 2011. RIL's gross refining margin (GRM) which is the differential between the cost of a barrel of crude oil and realization from sale of refined products produced from it declined to $9.5 a barrel in Q2 September 2012 from $10.1 a barrel in Q2 September 2011. RIL's net profit jumped 20.2% to Rs 5376 crore on 1.7% decline in turnover to Rs 93265 crore in Q2 September 2012 over Q1 June 2012. The GRM surged to $9.5 a barrel in Q2 September 2012 from $7.6 a barrel in Q1 June 2012. RIL announced the second quarter results on 15 October 2012. NTPC rose 1.62%. The company's net profit rose 29.62% to Rs 3142.35 crore on 4.76% increase in total income to Rs 17167.88 crore in Q2 September 2012 over Q2 September 2011. The company announced results during market hours on Friday, 26 October 2012. GAIL (India) rose 0.97%. The company's net profit fell 9.96% to Rs 985.38 crore on 18.15% increase in total income to Rs 11629.71 crore in Q2 September 2012 over Q2 September 2011. The company announced results during market hours on Friday, 26 October 2012. GAIL (India) said it has provided provisional discount of Rs 785.67 crore for sharing LPG under recoveries in Q2 September 2012, which was higher than Rs 566.60 crore in Q2 September 2011. Private sector banking giant ICICI Bank gained 2.13% to Rs 1,078.25. The scrip hit 52-week high of Rs 1,102.40 in intraday trade on Friday, 26 October 2012. ICICI Bank's net profit jumped 30% to Rs 1956 crore in Q2 September 2012 over Q2 September 2011. Net interest income jumped 35% to Rs 3371 crore and non-interest income jumped 17% to Rs 2043 crore in Q2 September 2012 over Q2 September 2011. Net interest margin improved to 3% in Q2 September 2012 from 2.61% in Q2 September 2011. Cost-to-income ratio reduced to 40.9% in Q2 September 2012 from 44.4% in Q2 September 2011. The bank's ratio of net non-performing asset to net advances stood at 0.66% as on 30 September, 2012, higher than 0.61% as on 30 June 2012 but lower than 0.8% as on 30 September 2011. The bank's provision coverage ratio, computed in accordance with the RBI guidelines, was 78.7% as on 30 September 2012. Net restructured assets as on 30 September 2012 were at Rs 4158 crore, lower than Rs 4172 crore as on 30 June 2012. ICICI Bank's provisions and contingencies surged 59.24% to Rs 508 crore in Q2 September 2012 over Q2 September 2011. Return on average assets (annualised) was 1.59% in Q2 September 2012, compared to 1.41% in Q2 September 2011. The CASA ratio was at 40.7% at end September 2012. The average CASA ratio was at 37.5% in Q2 September 2012. In a statement announcing the second quarter results, ICICI Bank said it has continued with its strategy of pursuing profitable growth. ICICI Bank it has grown its retail lending volumes, resulting in an improvement in retail loan portfolio growth. The bank continued to leverage its strong corporate franchise, its international presence and its branch network in India, it said. At September 30, 2012, the Bank had 2,772 branches, the largest branch network among private sector banks in the country. India's largest engineering and construction firm by sales L&T advanced 4.48% to Rs 1,705.85. The stock hit a 52-week high of Rs 1,718.40 in intraday trade on Thursday, 25 October 2012. L&T's recurring profit after tax (PAT) rose 15% to Rs 915 crore on 17% growth in gross revenue to Rs 13328 crore in Q2 September 2012 over Q2 September 2011. After considering certain exceptional and extra-ordinary items of income, the overall PAT jumped 42% to Rs 1137 crore in Q2 September 2012 over Q2 September 2011. L&T announced the second quarter results on Monday, 22 October 2012. L&T said order inflow at Rs 20967 crore in Q2 September 2012 recorded an impressive year-on-year growth 30%, thus sustaining the momentum seen during Q1 June 2012. The major orders came from buildings & factories, infrastructure and hydrocarbon sectors, L&T said. L&T's order book stood healthy at Rs 158528 crore as on 30 September 2012. International orders constituted 12% of the total order book. L&T said that uncertainty prevailing around the revival of growth in the global economies and the slow pace of reforms in India, have led to deceleration in growth across the sectors. Inflation continues to remain elevated exerting pressure on operating margins, L&T said. The rebounding of industrial production and improved credit demand was seen in many sectors towards the end of Q2 September 2012. A few steps takes by the Indian government recently underscore its commitment for accelerating the pace of economic development which provides positive signals for the prospects of the company, L&T said in a statement. L&T said that the company has been sustaining its growth momentum on the back of its strong and diversified business portfolio and increasing international presence. With its execution efficiencies and robust order book, the company is placed well to realize its near term targets and medium term plans, L&T said. M&M surged 6.83% to Rs 879.60 and was the top gainer from the Sensex pack. The stock hit a record high of Rs 882 in intraday trade on Friday, 26 October 2012. The combined net profit of M&M and its 100% subsidiary -- Mahindra Vehicle Manufacturers (MVML) -- jumped 28.4% to Rs 978.10 crore on 31% growth in gross revenue plus other income to Rs 10786.70 crore in Q2 September 2012 over Q2 September 2011. MVML, located at Chakan near Pune in Maharashtra, has been set up as a 100% subsidiary of M&M with a view to source contemporary products for expanding the market offering of M&M. M&M announced the second quarter results during trading hours on Thursday, 25 October 2012. With regard to future business outlook, M&M said while the current economic situation is quite challenging, M&M through its continuous focus on new product introduction, process innovation and cost control expects to rise to this challenge adequately. Hero MotoCorp (HMCL) rose 1.07%. The company at the time of announcement of Q2 results after trading hours Tuesday, 23 October 2012 said that its retail sales crossed two lakh units during Navratri. The company's net profit declined 27.01% to Rs 440.58 crore on 10.94% fall in net sales to Rs 5151.18 crore in Q2 September 2012 over Q2 September 2011. HMCL said the overwhelming customer response in the form of over 2 lakh units in retail sales during the Navratras has come about thanks to a combination of strategic initiatives -- the new exciting range of products, new advertising campaigns comprising premium segment offerings and ground-level activation. HMCL completed the process of brand migration of its models from the erstwhile joint brand to the new Hero brand during the quarter. HMCL has recently started dispatching its new 110cc motorcycle Passion X Pro, further broadening its range of products to offer more exciting options for the customers in the forthcoming festive season, HMCL said in a statement. Sterlite Industries rose 0.50%. The company's consolidated net profit jumped 75% to Rs 1743 crore on 9% growth in net sales to Rs 11029 crore in Q2 September 2012 over Q2 September 2011. The company announced results after market hours Tuesday, 23 October 2012. Sterlite said strong production and sales volumes of silver and lead at Zinc India, commercial power sales at Sterlite Energy (SEL) and refined copper sales at Copper India aided revenue growth in the second quarter. Sterlite said its Q2 EBITDA was in line with the corresponding prior quarter at Rs 2538 crore. Interest cost declined 25% to Rs 178 crore, primarily due to rupee appreciation in the quarter which resulted into lower foreign exchange loss being transferred to interest cost. The company recorded a foreign exchange gain of Rs 219 crore in Q2 September 2012 due to appreciation of rupee against the dollar. The company said depreciation charges rose due to capitalization of new plants at Zinc India and SEL. Sterlite said that the company continued to maintain a strong balance sheet with cash and liquid investment of Rs 23334 crore as on 30 September 2012. The company said it continues to follow a conservative investment policy and invests in high quality debt instruments in the form of mutual funds, bonds and fixed deposits with banks. India's second largest software services exporter by revenues Infosys declined 2.28%. Infosys after market hours on Monday, 22 October 2012 said it had completed the acquisition of Lodestone Holding AG, a leading management consultancy based in Switzerland. The acquisition is in accordance with the terms set out in the agreement announced on September 10, 2012. The deal strengthens the management consulting capabilities of Infosys around the world, adding more than 750 experienced consultants and 200 clients in wide-ranging areas such as manufacturing and the automotive and life sciences industries, Infosys said in a statement.