Market gains for fifth week in a row

Key benchmark indices logged gains for fifth week in a row as data showing a sharp fall in wholesale price inflation in April 2013 raised hopes that the Reserve Bank of India (RBI) may further cut policy rates to perk up economic growth. The market gained in four out of five trading sessions in the week ended Friday, 17 May 2013. In the week ended Friday, 17 May 2013, the 30-share S&P BSE Sensex gained 163.80 points or 0.81% to 20,286.12. The 50-unit CNX Nifty rose 80.05 points or 1.31% to 6,187.30. The BSE Mid-Cap index advanced 1.14% and the BSE Small-Cap index rose 0.21%. Trading for the week began on weak note as the key benchmark indices slumped on Monday, 13 May 2013 after the latest data showed that the country's trade deficit widened in April 2013. Weakness in European and Asian stocks also weighed on sentiment. The S&P BSE Sensex lost 430.65 points or 2.14% to settle at 19,691.67, its lowest closing level since 6 May 2013. Key benchmark indices closed marginally higher on Tuesday, 14 May 2013 as the latest data showing sharp fall in wholesale price inflation in April 2013 raised hopes that the Reserve Bank of India (RBI) may further cut policy rates to perk up economic growth. The S&P BSE Sensex advanced 30.62 points or 0.16% to settle at 19,722.29, its highest closing level since 11 May 2013. Key benchmark indices surged on Wednesday, 15 May 2013 as data released a day ago showed a sharp fall in wholesale price inflation in April 2013, raising hopes that the Reserve Bank of India (RBI) may further cut policy rates to perk up economic growth. Gains in Asian and European stocks also lifted sentiment. The S&P BSE Sensex jumped 490.67 points or 2.49% to settle at 20,212.96, its highest closing level since 5 January 2011. Indian stocks rose for the third day in a row on Thursday, 16 May 2013, as losses in index heavyweight ITC were offset by gains in another index heavyweight Reliance Industries (RIL). The S&P BSE Sensex advanced 34.37 points or 0.17% to 20,247.33, its highest closing level since 5 January 2011. Market gained for fourth day in row on Friday, 17 May 2013 as the key benchmark reversed intraday fall to turn positive in late trade. The S&P BSE Sensex was up 38.79 points or 0.19% to 20,286.12, its highest closing level since 5 January 2011. From 30-share Sensex pack, 16 stocks declined and rest of them advanced in the week ended Friday, 17 May 2013. Bharti Airtel (down 2.91%), GAIL (India) (down 1.53%) and Hero MotoCorp (down 1.43%) edged lower from the Sensex pack. ONGC (up 3.55%), NTPC (up 3.67%) and L&T (up 3.83%) edged higher from the Sensex pack. Index heavyweight Reliance Industries (RIL) advanced 2.59% to Rs 834.40. Index heavyweight and cigarette major ITC fell 5.64% to Rs 334.70. The stock had hit record high of Rs 355 in intraday trade on 11 May 2013. The company's net profit rose 19.43% to Rs 1927.98 crore on 19.12% growth in total income to Rs 8511.38 crore in Q4 March 2013 over Q4 March 2012. ITC's net profit rose 20.38% to Rs 7418.39 crore on 18.74% growth in total income to Rs 30839.97 crore in the year ended March 2013 over the year ended March 2012. The result was announced during market hours on Friday, 17 May 2013. On a consolidated basis, ITC's net profit rose 21.57% to Rs 7608.07 crore on 19.02% growth in total income to Rs 32505.14 crore in the year ended March 2013 over the year ended March 2012. ITC's board of directors at its meeting held on Friday, 17 May 2013, recommended a dividend of Rs 5.25 per share for the financial year ended 31 March 2013. India's largest car maker by sales, Maruti Suzuki India shed 1.32% to Rs 1709.40 on profit booking. Earlier, the stock advanced to record high of Rs 1756 in intraday trade on Wednesday, 15 May 2013 on the back of a weakening yen. Weak yen could boost earnings of Maruti Suzuki as it imports raw materials from its Japanese parent Suzuki Motor Corporation. It also pays annual royalty on sales to the Japanese parent. Mahindra & Mahindra (M&M) rose 1.73% to Rs 985.50. The stock had hit record high of Rs 997 in intraday trade on Thursday, 16 May 2013. Bajaj Auto slipped 1.59%. The company's net profit fell 1% to Rs 766 crore on 4% rise in turnover to Rs 4990 crore in Q4 March 2013 over Q4 March 2012. Net profit rose 1% to Rs 3044 crore on 3% growth in turnover to Rs 20793 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012). The result was announced during trading hours on Thursday, 16 May 2013. Bajaj Auto said that the company's performance in FY 2013 was good in a very difficult year for the automobile industry. The company's strategy to build strong brands and offer differentiated products in the front-end, and focus on cost and productivity improvements in the back-end, has yielded desired results, Bajaj Auto said. Bank stocks rose on expectations that the RBI may further cut policy rates to perk up economic growth after the latest data showed a sharp fall in wholesale price inflation in April 2013. A rate cut would boost credit offtake. ICICI Bank gained 5.16%. The private sector bank after trading hours on Thursday, 16 May 2013, said it has received an aggregate equity capital repatriation of Canadian dollar 75 million from ICICI Bank Canada, its wholly owned banking subsidiary in Canada. Post the repatriation, the share capital of ICICI Bank Canada is Canadian dollar 857 million and its capital adequacy ratio continues to be strong, ICICI Bank said in a statement. ICICI Bank said it already has a strong capital adequacy ratio, and the return of capital by the subsidiary will enhance the bank's ability to optimise capital deployment and return on equity. HDFC Bank rose 2.31% to Rs 718.70. The stock's intraday high of Rs 724 hit on Friday, 17 May 2013 matched with a record high hit in intraday trade on Thursday, 16 May 2013. Shares of India's biggest commercial bank in terms of branch network, State Bank of India (SBI), advanced 5.15%. HDFC gained 3.19% to Rs 903.50. The stock had hit record high of Rs 916.65 in intraday trade on Thursday, 16 May 2013. IT stocks fell. Tata Consultancy Services (TCS) shed 1.32%. Infosys slipped 0.48%. The company after trading hours on Wednesday, 15 May 2013, said that Turkland Bank (T-Bank), one of Turkey's leading private banks, has deployed Infosys' Finacle core banking, CRM and treasury solutions. This deployment empowers T-Bank to meet the needs of retail and corporate customer segments with faster product rollout and improved customer service, Infosys said. Wipro lost 2.95%. The company on Saturday, 9 May 2013 said that the Securities & Exchange Board of India (Sebi) has approved its proposal to meet the minimum public shareholding requirement through a transfer of equity shares by the promoter group to an 'Irrevocable Independent Trust' with trustees either from public sector banks or public financial institutions for advancing philanthropic activities through its beneficiaries. Wipro said that the company and the promoter group have undertaken multiple steps to fulfill the minimum public shareholding requirement including Offer for Sale (OFS). The demerger of the 'diversified' business is also expected to increase public shareholding. Any shortfall to meet public shareholding prior to due date of meeting the minimum public shareholding requirement would be transferred to the 'Irrevocable Independent Trust' and the trust shall effect a sale of such equity shares forming part of the trust funds within a period of two years from the date of such settlement, Wipro said. Cipla surged 5.59%. The company said during market hours on Wednesday, 15 May 2013, that shareholders of Cipla Medpro South Africa have approved Cipla's cash offer to acquire 100% of Cipla Medpro through itself or through its nominated subsidiary. Hindalco Industries rose 3.72%. Novelis, Hindalco's US subsidiary, reported net income attributable to its common shareholders of $202 million for the year ended 31 March 2013 (FY 2013). Excluding tax-effected certain items, net income for FY 2013 was $241 million, compared to a net income of $218 million for the year ended 31 March 2012 (FY 2012). Net sales declined 11% to $9.8 billion in FY 2013 over FY 2012. This decline was due to lower average aluminum prices and lower shipments when compared to last year, Novelis said. Tata Steel fell 2.15%. The company said after market hours on Monday, 13 May 2013, that the company has substantially completed its year end impairment review for the consolidated financial statements for the financial year end 31 March 2013 (FY 2013) as required under the Indian Accounting Standards. This review was undertaken taking into account the external economic environment and macroeconomic conditions especially in Europe, the underlying demand-supply imbalance of the global steel industry and the prudent view of the forecast of the businesses. Following the review, the company expects non-cash write down of the goodwill and assets in the consolidated financial statements for the year ended 31 March 2013 of around $1.6 billion. The impairment is primarily due to a weaker macroeconomic and market environment in Europe where apparent steel demand has fallen significantly in 2012-13 by almost 8% which in aggregate results in almost 30% since the emergence of the global financial crisis in 2007. This has led to a downward revision of cash flow expectations underlying the valuation of the European business. The impairment also includes the effect of write down of assets in the ferro chrome business in South Africa and the mini blast furnace in Tata Steel Thailand which has been impacted by the high cost of raw material feedstock. The final figures will be included in the full year results on 23 May 2013, Tata Steel said. The company's financial covenants are unaffected by the above non-cash write down of goodwill and assets, it added. Global credit rating agency Standard & Poor's (S&P) on Friday, 17 May 2013, affirmed India's sovereign rating at "BBB-minus" with a "negative" outlook, reiterating there was a one-in-three chances of a ratings downgrade over the next 12 months. S&P said the government's ability to prop up investment growth remains uncertain. The ratings agency, however, said there was scope to upgrade the sovereign ratings if the government unleashes public and private investments to spur economic growth. India's trade deficit widened to $17.787 billion in April 2013 from $14.041 billion in April 2012, data released by the government on Monday, 13 May 2013, showed. While exports rose 1.68% at $24.164 billion, imports jumped 10.96% to $41.951 billion in April 2013 over April 2012. The consumer price inflation fell below the 10% mark in April 2013. The combined consumer price inflation for rural and urban India eased to 9.39% in April 2013 from 10.39% in March 2013, data released by the government on Monday, 13 May 2013, showed. Within the consumer price index, inflation with respect to food and beverages stood at 10.61% in April 2013. The annual rate of inflation, based on monthly wholesale price index (WPI), eased sharply to 4.89% in April 2013, from 5.96% in March 2013, data released by the government on Tuesday, 14 May 2013, showed. Core inflation or non-food manufacturing inflation declined further to 2.74% in April 2013 from 3.41% in March 2013. Meanwhile, WPI inflation for February 2013 was revised upwards to 7.28% from 6.84% reported earlier.