Despite some good earning numbers pouring in, markets moved in a narrow range. The BSE Sensex inched up 14 points whereas the S&P CNX Nifty ended the week flat.
The biggest plus this week was the increase in trading volumes. The combined average turnover at both the exchanges rose to a six week high of Rs 4045 crore – a rise of 46 per cent over the last week. FIIs also returned to market with Rs 56 crore net investment. However, mutual funds turned net-sellers for the week after being net-buyers for the two consecutive weeks. They sold equities worth Rs 170 crore.
Barring an 8-point fall on Wednesday, markets moved up on all trading sessions, though in a tight range. Renewed buying in index heavyweights and old-economy stocks saw the share prices of HLL, Reliance, TELCO and ITC ending the week in positive territory. The mixed response from the government on the disinvestment front led to a decline in share prices of PSU stocks. Hindustan Petroleum was down 1.8 per cent and Bharat Petroleum lost 5.4 per cent.
After the robust second-quarter earnings by Infosys, technology stocks continued to rise this week. The BSE IT Index gained 2.6 per cent on the positive outlook for the sector and the excellent recovery in the US markets. However, Wipro failed to enthuse market, as its net-profit fell short of market expectations. It registered a marginal increase of 1.8 per cent in its net profits year-on-year and a flat sequential growth. The company added 30 new clients in the quarter. Going ahead, the management is confident about growth in the IT sector.
The surprise of the week was Ranbaxy. Its net-profit grew 80 per cent (year-on-year), largely on account of better overseas sales. However, its share price fell 4.5 per cent. The BSE Healthcare Index lost 4.5 per cent. Dr. Reddy led this fall. The company's share price ended the week down 10 per cent following the US Court's ruling that it had violated some patent norms.
The other major companies that beat the market expectation was Hero Honda and HDFC. Hero Honda's net-profit rose by 42 per cent but has maintained a cautious outlook. HDFC recorded a 30 per cent rise in its net profit as it saw an increase in its customer base. It has expanded the low cost savings deposit base by 61 per cent year-on-year.
On Wall Street, the NASDAQ and the Dow Jones surged by 6 per cent as the US software giant Microsoft registered an impressive earning for the quarter. The company has also raised its forecast for the year.
Outlook
The BSE Sensex crossed the 3000 mark after three weeks, thus bringing back some of the confidence which was lost in previous months. The quarter earnings have also been encouraging so far. Going ahead, markets are likely to take further guidance from the incoming corporate results.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
