Healthy corporate results made sure that the bull-run at Dalal Street continues. The BSE Sensex wrapped up the week at 4930—up nearly 3.38 per cent. The S&P CNX Nifty gained 3 per cent to reach 1569 points. Mid-caps were slower off the mark and the CNX Midcap 200 index gained just 1.48 per cent. The broader S&P CNX 500 did a bit better, rising by 2.22 per cent.
Average trading volumes crossed Rs 8,000 crore, but the advance decline ratio witnessed fluctuations. The week ended with declines outnumbering advances and the advance-decline ratio stood at 0.85.
FIIs poured in nearly Rs 2,200 crore over the week, indicating their unflinching faith in the Indian economy. Their net investment of Rs 4,500 crore in October so far has surpassed the last calendar's total investment of Rs 3,620 crore. On the other hand, with net outflows of Rs 95 crore, domestic mutual funds seem to be cashing in on profits.
Wipro's September quarter results added to the air of optimism in the technology sector. Like Infosys, Wipro also reported a higher volumes and marginal increase in prices, thereby indicating that pricing pressure has eased. Wipro gained 5.30 per cent over the week.
In contrast Mastek reported a marginal increase in sales and the company continues to feel the pricing pinch. The Mastek stock tumbled 14.64 per cent over the week. On the whole the BSE IT Index was up 3.52 per cent over the week.
Though the rally did stumble in the wake of profit booking on Tuesday, hopes of strong quarterly results from auto, cement and banking stocks brought back the buyers. Boosted by increase in treasury income, Hero Honda reported a 12 per cent rise in net profits, however sales volumes grew by 2 per cent during the quarter. The stock gained 2.47 per cent over the week. Cement major Gujarat Ambuja disappointed despite a sharp 40 per cent surge in net profits, as it was below expectations. The stock lost 4.50 per cent over the week. Besides, Reliance Industries also reported a 26 per cent jump in net profits on the back of strong growth in refinery, petrochemicals and telecom divisions. The stock gained 4 per cent over the week.
Among sectoral indices, BSE Bankex was the biggest winner—it gained 3.82 per cent over the week. While BSE IT Index was marginally behind, BSE Healthcare Index gained 2.74 per cent. BSE FMCG and BSE PSU Index were the laggards with a gain of 1.30 per cent and 1.86 per cent respectively.
The US markets also closed up for the third successive week on the back of strong corporate results. Nasdaq and Dow Jones mustered a gain of 2 per cent and 1.15 per cent respectively.
Outlook
Amidst the air of optimism and the burgeoning inflows, the Sensex seems ready to cross the 5,000 mark. But one should not forget that, the week gone by witnessed some volatility. Results from leading companies will continue to give direction to equity markets.
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