Market review: BSE Sensex ends higher for 3rd consecutive week,up 289 pts

Better-than-expected fourth quarter earnings by FMCG major HUL on the back of robust sales across various business verticals,boosted the market sentiment.

Shares of HUL ended higher by 23.05 pct as the company posted 14.65 increase in its net profit at Rs 787.20 crore for the fourth quarter ended March 31,2013.

The RBI in its annual monetary policy said upside risks to inflation in the near term are still significant and monetary policy cannot afford to lower its guard against the

possibility of resurgence of inflation pressures,dashing investor hopes of further softening of rates.

Banking stocks remained under pressure throughout the last day as the 0.25 percentage point rate cut was already factored in and hence profit-booking emerged at higher levels after three days of rally,brokers said.

The Sensex resumed higher at 19,306.67 and hovered in a wide range of 19,792.00 and 19,284.30 before ending at 19,575.64,showing a net gain of 288.92 points of 1.50 per cent. It has gained by 1,333.08 points of 7.30 per cent in three weeks.

The NSE 50-share Nifty also rose by 72.55 points or 1.24 per cent to 5,944.00. It has also gained by 415.45 points or 7.51 per cent in three weeks.

The Sensex slipped into the negative zone touching a low of 19,284.40 as the World bank scaled down India’s growth forecast to 6.1 per cent for the current fiscal from earlier estimate of 7 per cent.

Passage of the Finance Bill and Finance Minister P Chidambaram assuring foreign investors that Tax Residency Certificate (TRC) issued by a foreign government will be accepted as a certificate of residence bolstered the sentiment,brokers said.

Persistent capital inflows from foreign funds also boosted the market sentiment. The FII invested net Rs 4,221.25 crs during the current week including the provisional figure of May 3 as per data issued by the Stock Exchanges.

16 scrips out of the 30-share sensex pack ended higher while 14 others finished lower.

Other major gainers from the sensex pack were Wipro 7.70 pct,M&M 7.63 pct,Infosys 4.31 pct,ITC 3,69 pct,TCS 3.69 pct,Sun Pharma 2.97 pct,NTPC 2.87 pct,Tata Steel 2.08 pct,Larsen 1.76 pct and Reliance Industries 1.01 pct.

However,Bajaj Auto dropped by 4.28 pct followed by Gail India 4.11 pct,Tata Motors 3.69 pct,SBI 3.18 pct,Cipla 2.03 pct,HDFC 2.02 pct,Icici bank 1.24 pct,Tata Power 1.21 pct and HDFC Bank 1.17 pct.

Among the major indices,the S&P BSE-FMCG rose by 7.53 pct followed by S&P BSE-IT 4.74 pct,S&P BSE-Teck 4.39 pct,S&P BSE-Power 2.17 pct,S&P BSE-CG 2.12 pct,S&P BSE-CD 1.83 pct,S&P BSE-Metal 1.73 pct and S&P BSE-HC 1.56 pct.

The S&P BSE-Midcap also rose by 1.61 per cent on the back of buying from retail investors.

However,S&P Bankex dropped by 1.11 per cent,S&P BSE-PSU by 0.43 pct and the S&P BSE-Auto 0.16 pct.

The total turnover at BSE and NSE during the truncated week was at 11,007.13 crore and Rs 46,549.59 crore respectively as against the previous week level of Rs 8,790.56 crs and Rs 48,692.75 crs.

The BSE and NSE were closed on May 1 for observing “Maharashtra Day”.

Other major gainers from the sensex pack were Wipro 7.70 pct,M&M 7.63 pct,Infosys 4.31 pct,ITC 3,69 pct,TCS 3.69 pct,Sun Pharma 2.97 pct,NTPC 2.87 pct,Tata Steel 2.08 pct,Larsen 1.76 pct and Reliance Industries 1.01 pct.

However,Bajaj Auto dropped by 4.28 pct followed by Gail India 4.11 pct,Tata Motors 3.69 pct,SBI 3.18 pct,Cipla 2.03 pct,HDFC 2.02 pct,Icici bank 1.24 pct,Tata Power 1.21 pct and HDFC Bank 1.17 pct.

Among the major indices,the S&P BSE-FMCG rose by 7.53 pct followed by S&P BSE-IT 4.74 pct,S&P BSE-Teck 4.39 pct,S&P BSE-Power 2.17 pct,S&P BSE-CG 2.12 pct,S&P BSE-CD 1.83 pct,S&P BSE-Metal 1.73 pct and S&P BSE-HC 1.56 pct.

The S&P BSE-Midcap also rose by 1.61 per cent on the back of buying from retail investors.

However,S&P Bankex dropped by 1.11 per cent,S&P BSE-PSU by 0.43 pct and the S&P BSE-Auto 0.16 pct.

The total turnover at BSE and NSE during the truncated week was at 11,007.13 crore and Rs 46,549.59 crore respectively as against the previous week level of Rs 8,790.56 crs and Rs 48,692.75 crs.

The BSE and NSE were closed on May 1 for observing “Maharashtra Day”.

Forex: The rupee bounced back with a vengeance,recovering all of its last week’s losses to end up by 43 paise at 53.94 against the Greeback during the shortened week under review on the back of fresh dollar selling by exporters and some banks amid smart rise in local equities.

The Forex market was closed on May 1 on account of “Maharashtra Day”.

At the Interbank Foreign Exchange (Forex) market,the domestic unit commenced the week on a better note at 54.35 a dollar from last weekend’s close of 54.37 and immediately touched a low of 54.39.

Later,it turned positive and rose to a high of 53.67 before concluding at 53.94,showing a rise of 43 paise or 0.79 per cent. Last week,it had tumbled by 41 paise or 0.76 per cent.

Continuing its upward march,the Indian benchmark S&P BSE Sensex closed the week up by 288.92 points or 1.50 per cent,despite fag end sell-off after the announcement of key rate cut of 0.25 per cent by the apex bank in its annual monetary policy meet on May 3,which disappointed the marketmen.

FIIs were net buyers during the week and they picked up shares worth Rs 4,221.25 crore as per provisional data with stock exchanges.

Mr. Pramit Brahmbhatt,CEO,Alpari Financial Services (India) said,”As expected the RBI brought down interest rates for a third time this year by 25 basis points from 7.50 per cent to 7.25 per cent and kept cash reserve ratio (CRR) unchanged at 4 per cent. Markets reacted immediately to the RBI decision as equity markets closed in negative terrain on the last day and also the rupee weakened against the dollar on

the last day of the week.