After remaining in bear grip for three consecutive weeks, stock markets finally headed northwards this week. The BSE Sensex and the Nifty gained 1.4 per cent and 1.5 per cent, respectively. The mid-cap stocks continued their superior performance as the S&P Mid-cap Index moved up by 4 per cent this week. The S&P 500 Index too moved up, gaining 2 per cent over the week. In the US, the Nasdaq touched a 10-month high and gained 4.7 per cent for the week. Dow Jones too was up 3.3 per cent.
Among sectoral indices, the PSU counter was the top gainer, with the BSE PSU Index moving up 2.6 per cent over the week. MTNL saw its net profits dip by 31 per cent for the fiscal year 2002-03. The telecom PSU registered a profit of Rs 897 crore this fiscal vis-à-vis Rs 1,006-crore profits clocked the previous year. Over the week, the stock remained flat. As for PSU banking stocks, most had rallied prior to the Credit Policy but post the policy these stocks came under selling pressure. Nonetheless several bank stocks such as PNB, J&K Bank and Union Bank reached their all-time highs during the week.
The BSE FMCG Index too gained 1.7 per cent this week. FMCG major Nestle posted a rise both in Q-1 revenues and net profits. While the company's revenues rose by 12.8 per cent, net profits were up 21.6 per cent over the same quarter last year. However, the stock lost 1.5 per cent for the week. In comparison, Hindustan Lever—which has a 45 per cent weightage in the index—gained 1.8 per cent in the week, in spite of strong selling pressure on Friday.
The BSE Healthcare remained nearly flat, losing 0.1 per cent over the week. Pharma major Ranbaxy registered an impressive growth of 77 per cent in Q-1 net profits. The scrip gained 1.4 per cent over the week. Glaxosmithkline Pharma too notched up a 35 per cent increase in net profits, gaining 10.5 per cent in the week.
The BSE IT Index, on the other hand, shed 1.5 per cent through the week. IT major HCL Technologies saw a 54 per cent fall in net profits for Q-3 ended March 31, 2003 compared to the corresponding period last year. However, the company's revenues were up 14 per cent. HCL Technologies had bagged a $160-million order from BT, which helped it increase its revenue. The stock, which has a 6.5 per cent weightage in the BSE IT index, lost 13 per cent over the week. While Infosys remained flat for the week, Wipro lost 2 per cent, pulling the BSE IT Index down.
Among other index stocks, Reliance gained 2 per cent while HDFC was up 20 per cent for the week. ICICI Bank, on the other hand, touched a six-month low on fears that the bank may have to dilute its equity for meeting capital adequacy requirements. Over the week, the scrip lost 7.6 per cent. Another index stock, Hindalco, saw a 15 per cent fall in net profits (Rs 582 crore) over the previous year (Rs 686 crore in year 2001-02). Despite this the stock was up 4.6 per cent for the week.
As for institutional investors, both FIIs and mutual funds were buyers this week. FIIs bought equities worth Rs 212 crore for the week while mutual funds had picked up Rs 23 crore worth of equities (till Wednesday).
Meanwhile, the finance minister announced that the exemption on long-term capital gains tax will be restricted to stocks that constitute the BSE 500 Index, and the IPOs that will happen this year.
Outlook
After many weeks FIIs made a comeback in full force. Stock markets continue to search for triggers and the outlook could depend on further news about the monsoons and FII inflows.
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.
