The market was almost flat last week on mixed cues. Global cues were encouraging as euro zone debt worries eased after Moody’s Investors Service retained Spain’s sovereign-debt rating at investment grade. However, political worries in India kept the market on the edge as the Opposition parties stepped up pressure on the government for an independent inquiry into the land deal between Congress chief Sonia Gandhi’s son-in-law Robert Vadra and realty major DLF.
The BSE Sensex rose 7.13 points or 0.04% to 18,682.31 and S&P CNX Nifty rose 8.20 points or 0.14% to settle at 5,684.25. The BSE Mid-Cap index underperformed the Sensex, falling 0.08%. The BSE Small Cap index outperformed the Sensex, rising 0.84%.
Foreign institutional investors (FIIs) have bought shares worth Rs 11113.50 crore net in October 2012 so far.
Among the 30 Sensex shares, 20 shares declined and the remaining shares rose.
Trading for the week began on a positive note. But indices shed the gains as weakness in global markets hit the sentiments adversely.
State-run gas utility GAIL (India) was the biggest Sensex loser last week. The stock fell 5.11% to Rs 359.95.
Metal stocks declined. Tata Steel (down 3.2% to Rs 407.10), Jindal Steel & Power (down 2.54% to Rs 406.85), Hindalco Industries (down 2.46% to Rs 114.90) and Sterlite Industries (India) (down 2.43% to Rs 100.35), edged lower.
Index heavyweight Reliance Industries (RIL) fell 1.92% to Rs 803.20. RIL’s net profit declined 5.7% to Rs 5376 crore y-o-y in Q2 September 2012 over Q2 September 2011 and jumped 20.2% over Q1 June 2012.
Index heavyweight and cigarette maker ITC was the top Sensex gainer last week. The stock rose 5.12% to Rs 297.50. The company’s net profit jumped 21.27% to Rs 1836.42 crore in Q2 September 2012 y-o-y.
Mahindra & Mahindra (M&M) declined 3.63% to Rs 823.40. The company announced the launch of high-end sports utility vehicle SsangYong Rexton.
India’s largest commercial vehicle maker by sales Tata Motors dropped 0.61% to Rs 268.90. The company’s global sales declined 4% to 1.03 lakh units in September 2012 over September 2011.
India’s largest car maker by sales Maruti Suzuki India fell 0.20% to Rs 1,369.15. The car major early this week launched an upgraded model of its popular Alto car.
India’s largest two-wheeler maker by sales Hero MotoCorp rose 3.93% to Rs 1,849.40. Shares of two-wheeler and three-wheeler exporter Bajaj Auto rose 1.17% to Rs 1764.
Tata Power Company rose 2.64% to Rs 105. The company has been awarded the Letter of Intent for the electricity distribution franchise of Jamshedpur circle by the Jharkhand State Electricity Board.
Realty major DLF fell 5.87% to Rs 206.05. The stock witnessed selling pressure as a land deal between Congress chief Sonia Gandhi’s son-in-law Robert Vadra and DLF came to spotlight.
On the macro front, the wholesale price index (WPI) rose to the highest level in 10 months in September 2012, at 7.81%. Inflation based on the consumer price index stood at 9.73 % in September 2012.
Nifty is currently consolidating within a range of 100 points i.e. 5750 & 5650 holding over its positional support of 5620 levels. Technically Nifty has an immediate technical resistance around 5750/5780 levels. Nifty may remain under pressure while trading below these levels. Once the mentioned levels breached Nifty may witness a fresh move towards 5850-5980 levels.
While on the flip side in case of breach below 5620 fresh weakness can be expected towards 5520 & 5450 levels.