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Weekly: Markets end lower amid volatility

IT index slumps 11.5%

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The ended a volatile week in the red, thanks a slew of negative developments which dampened the investor sentiment through the week.

Some of the blues for the market this week were wavering global markets, drop in India's industrial growth, massive earthquake in Indonesia triggering tsunami fears in the Asian region and a discouraging start to the quarterly result season after disappointing earnings and guidance from IT bellwether Infosys.

The BSE benchmark index fell 2.24% while the lost 2.17% for the week ended April 13. In the broader markets, the Midcap index fell 2.10% while the Smallcap index managed to hold to its gains, with a 0.7% loss through the week.

Growth in industrial production slowed to 4.1 per cent in February, primarily owing to a poor show by the manufacturing sector and the consumer goods segment. Growth in factory output, as measured by the index of industrial production (IIP), stood at 6.7 per cent in February. Also, The January IIp figures were revised downwards to 1.14% from the reported 6.8% citing wrong sugar output data.

Another drop in numerical terms was IT major Infosys Q4 numbers. The company reported a quarter-on-quarter net profit to Rs 2,316 crore for the quarter ended March 31, 2012. In the previous quarter its net profit was Rs 2,372 Crore.The Company’s revenue also dropped 4% q-o-q (22% y-o-y) at Rs 8,852 crore from Rs 7,250 crore in the year-ago period.

India’s second-largest software services exporter disappointed investors with a weaker-than-expected revenue growth outlook for 2012-13, sending its shares plunging 12.6 per cent in its biggest single-day fall in nine years. The tumble wiped off Rs 15,000 crore from the company’s market value.

Among the sectoral indices on the BSE, defensive spaces like FMCG and Health Care up 2-4% along with Auto index which added 1% were the only ones to end in the green.

Meanwhile, IT index down 11.5% was the top loser. Capital Goods, Metal, Power and Consumer Durables which dropped 2.5-4% were the other notable index losers.BSE Bankex lost 0.34%

Among the stocks, FMCG majors, HUL and ITC were the top gainers adding 4-6%. Sun Pharma, Tata Motors, Cipla, Hero Motocorp, SBI and Tata Power gained between 2-4%.

IT majors,Infosys, TCS down 9-15% were teh ajor draggers among the Sensex-30. Hindalco, BHEL, Jindal Steel, Tata Steel, Wipro and L&T lost 5-6% were the other notable losers.

In the broader markets, the BSE Mid-cap index ended down 2.1% and the Small-cap index lost 0.7%. Indraprastha Gas was the stock of the week after it slumped nearly 40% during the week as  the Petroleum and Natural Gas Regulatory Board (PNGRB) changed prices at which compressed natural gas (CNG) and piped natural gas (PNG) are to be sold with a retrospective effect.PNGRB passed an order for cutting network tariff by 64% and compensation tariff by 60% in the Delhi region, areas where IGL has a monopoly. 

In the Small-cap index, AP Paper was the top gainer which surged 32% during the week under review.

Investors would look forward to the Reserve Bank of India's monetary policy review on Tuesday, April 17 and could be one of the trend setter for the week other than the developments in the overseas markets.

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