Infosys's announcement of a bonus issue along with reasonable guidance for the current fiscal despite continuous rupee appreciation set the tone for the market. The company's decision to issue bonus shares in the ratio of 3:1, final dividend of Rs.15 per share and a one time special dividend of Rs.100 per share bolstered the sentiment. Not far behind, Wipro's fourth quarter numbers too exceeded street expectations. Biocon continues to shine in the second week of its listing not being overshadowed by IT heavyweight's results. The results of media player Zee Telefilms and auto giant Hero Honda couldn't enthuse the market despite good numbers. Banking shares, especially mid-caps, were on a rise after the Supreme Court upheld the validity of the Securitisation Act.
As a result, the BSE Sensex gained 0.42 per cent to 5862 points and the S&P CNX Nifty rose 0.83 per cent to 1869 points. Among the broader indices, CNX Mid Cap 200 smartly gained 4 per cent while S&P CNX 500 was up about 2 per cent.
On Monday, the markets were in a cautious mood awaiting the outcome of Infosys's board meeting, and the BSE Sensex was down 55 points to 5784 points. Enthused by a reasonable guidance and liberal bonus issue by Infosys, the BSE Sensex gained a whopping 121 points to close at 5904 points on Tuesday. The markets remain closed on Wednesday on account of Ambedkar Jayanti. Thursday was a less thrilling day and the Infy euphoria proved short-lived as the Sensex declined 61 points to 5844 points. Wipro's excellent results on Friday saw the BSE Sensex end the day at 5863 points, up about 19 points. Reliance Energy and HDFC Bank's results couldn't perk up the Sensex much. The markets remained open on Saturday to test a new back-up facility in chennai.
In sectoral indices, the BSE IT Index surged 5.7 per cent after good results from Infosys and Wipro. The shares of other IT companies flared up on the hope of a similar show. The BSE FMCG Index bucked the past week's trend and gained 1.52 per cent. The BSE PSU Index ended the week 2.4 per cent higher, while the BSE Bankex turned around this week registering a gain of 2.4 per cent as banks were in the limelight after the Supreme Court's judgement in their favour. The BSE Healthcare Index was also up 1.3 per cent.
The average turnover for the week rose by 2.7 per cent to Rs 7670 crores. FIIs chose to remain silent this week with net transactions of Rs 438 crore. Mutual funds were on a buying spree after the heavy selling in the previous week. The average advance-decline ratio was more than 1.5 for this week.
In global markets, NASDAQ dropped 2.7 per cent to1,996 points. The Dow Jones managed to remain unchanged at 10,452 points.
Outlook
With results from other corporate heavyweights in the pipeline and the positive vibes generated by the Infosys and Wipro's numbers, the mood is likely to remain upbeat in the coming week. FIIs and mutual funds are expected to return to the market after remaining silent for the past two weeks. The India Inc. story is very much likely to continue.
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