Markets bounce back on good corporate results
Sunday, 25 April 2010
MUMBAI, Apr 24 (PTI): The stock markets bounced back on strong fourth quarter corporate results and forecast of a normal monsoon in 2010 for the country with the Bombay Stock Exchange's benchmark Sensex recovering 103 points in the past week.
The BSE benchmark Sensex firmed up by 103.02 points or 0.59 per cent to close at 17,694.20 from its last weekend's close.
The National Stock Exchange's (NSE) 50-share Nifty also firmed up by 41.50 points or 0.79 per cent to 5,304.10 from last weekend's close.
Initially, the Sensex had declined by 191.50 points on selling pressure as investors shunned risky assets on reports of the Securities and Exchange Commission (SEC) filing civil fraud charges against US investment bank Goldman Sachs.
But good corporate results buoyed the market sentiment. Energy major Reliance Industries posted a 30-per cent rise in net profit in January-March quarter at Rs 47 billion Friday.
IT services firm HCL Technologies posted a 78-per cent jump in net profit at $77 million for the January-March quarter.
A surprise bonus issue from IT major Wipro also boosted the trading sentiment. The company recommended a 2:3 bonus issue at the time of announcing its Q4 March 2010 results, reporting 20.77 per cent growth in consolidated net profit at Rs 13 billion, though its share fell 4.04 per cent on selling pressure.
Banking stocks attracted heavy buying support as the government approved Rs 150 billion capital infusion in public sector banks (PSBs) in the current fiscal, a move that will increase the lending capacity of the banks.
Investors also heaved a sigh of relief after the Reserve Bank of India, in its annual monetary policy on April 20, hiked repo, reverse repo rates and the cash reserve ratio (CRR) by 25 basis points each, which was lesser than what the markets had expected.
The IMF forecast of 8.75 per cent growth for the country for 2010 boosted the market sentiment at the fag-end of the week.
The Indian Meteorological Department (IMD) Friday forecast normal monsoon rainfall for the entire country, which also reassured the markets.
During the week, banking, auto and PSU stocks attracted good buying interest, while the small and the mid cap sectors too outperformed the Sensex.
Among the major gainers were SBI, up 10.20, ICICI Bank up 5.87 per cent, HUL up 5.45 per cent, Jaiprakash Asso 6.22 per cent, M&M 3.56 per cent, and Tata Motor 7.64 per cent.
Among the indices, the Bankex shot up by 520.00 points or 4.93 per cent followed by the BSE-Auto index, up 182.30 points or 2.40 per cent, the BSE-PSU index up 128.72 points or 1.45 per cent and the BSE-Realty index up 49.29 points or 1.39 per cent.
The small and the mid cap indices also firmed up by 183.38 points and 108.60 points or 2.03 per cent and 1.55 per cent, respectively.
However, the BSE-Metal dropped 572.11 points or 3.14 per cent and the BSE-IT fell by 118.73 points or 2.16 per cent.
The turnover at the BSE and the NSE recovered to Rs 229.31 billion and Rs 690.46 billion, respectively from the previous weekend's level of Rs 182.09 billion and Rs 549.64 billion.
The BSE benchmark Sensex firmed up by 103.02 points or 0.59 per cent to close at 17,694.20 from its last weekend's close.
The National Stock Exchange's (NSE) 50-share Nifty also firmed up by 41.50 points or 0.79 per cent to 5,304.10 from last weekend's close.
Initially, the Sensex had declined by 191.50 points on selling pressure as investors shunned risky assets on reports of the Securities and Exchange Commission (SEC) filing civil fraud charges against US investment bank Goldman Sachs.
But good corporate results buoyed the market sentiment. Energy major Reliance Industries posted a 30-per cent rise in net profit in January-March quarter at Rs 47 billion Friday.
IT services firm HCL Technologies posted a 78-per cent jump in net profit at $77 million for the January-March quarter.
A surprise bonus issue from IT major Wipro also boosted the trading sentiment. The company recommended a 2:3 bonus issue at the time of announcing its Q4 March 2010 results, reporting 20.77 per cent growth in consolidated net profit at Rs 13 billion, though its share fell 4.04 per cent on selling pressure.
Banking stocks attracted heavy buying support as the government approved Rs 150 billion capital infusion in public sector banks (PSBs) in the current fiscal, a move that will increase the lending capacity of the banks.
Investors also heaved a sigh of relief after the Reserve Bank of India, in its annual monetary policy on April 20, hiked repo, reverse repo rates and the cash reserve ratio (CRR) by 25 basis points each, which was lesser than what the markets had expected.
The IMF forecast of 8.75 per cent growth for the country for 2010 boosted the market sentiment at the fag-end of the week.
The Indian Meteorological Department (IMD) Friday forecast normal monsoon rainfall for the entire country, which also reassured the markets.
During the week, banking, auto and PSU stocks attracted good buying interest, while the small and the mid cap sectors too outperformed the Sensex.
Among the major gainers were SBI, up 10.20, ICICI Bank up 5.87 per cent, HUL up 5.45 per cent, Jaiprakash Asso 6.22 per cent, M&M 3.56 per cent, and Tata Motor 7.64 per cent.
Among the indices, the Bankex shot up by 520.00 points or 4.93 per cent followed by the BSE-Auto index, up 182.30 points or 2.40 per cent, the BSE-PSU index up 128.72 points or 1.45 per cent and the BSE-Realty index up 49.29 points or 1.39 per cent.
The small and the mid cap indices also firmed up by 183.38 points and 108.60 points or 2.03 per cent and 1.55 per cent, respectively.
However, the BSE-Metal dropped 572.11 points or 3.14 per cent and the BSE-IT fell by 118.73 points or 2.16 per cent.
The turnover at the BSE and the NSE recovered to Rs 229.31 billion and Rs 690.46 billion, respectively from the previous weekend's level of Rs 182.09 billion and Rs 549.64 billion.