 "Markets log weekly gain on lower inflation")
The 30-share Sensex ended the week up 305 points or 1.5 per cent at 21,064 and the 50-share Nifty ended up 90 points or 1.5 per cent at 6,262.
However, the broader markets witnessed profit taking after gains in the previous weeks underperforming the benchmark indices. The BSE Mid-cap Index ended down 1.4 per cent at 6,487 and the Small-cap index closed 1.4 per cent lower at 6,477.
Most of the gains were seen in earlier part of the week, supported by global cues after weaker-than-expected US jobs data increased the probability that the US Fed may not increase the quantum of stimulus cuts.
The wholesale inflation declined to a five-month low in December on lower vegetable prices. WPI-based inflation stood at 6.16 per cent from 7.52 per cent a month ago, as per the data released by the Ministry of Commerce and Industry. This is the first time since May that headline inflation has declined from the previous month. In November, the WPI inflation was at a 14-month high
The Consumer Price Index (CPI)–based inflation for December had also fallen to a three-month low of 9.87 per cent in December due to a decline in vegetable prices, as per the official data.
Among the rate-sensitive sectors financial shares gained the most. India’s largest mortgage lender HDFC was the top gainer in the segment up five per cent on hopes that steady interest rates would help revival of demand for home loans. In the banking pack, SBI, ICICI Bank and HDFC Bank ended up one per cent each.
In the auto segment except for Maruti Suzuki that slipped nearly one per cent, all other auto majors ended with gains. Larsen & Toubro was among the top gainers in the capital goods space. The company announced receipt of orders worth Rs 1,000 crore. Further, state-owned engineering major BHEL ended as the top Sensex gainer for the week to end 5.4 per cent higher at Rs 171.30.
Infosys ended five per cent higher. The IT major’s third quarter earnings beat street expectations recording a margin expansion of 150 bps quarter-on-quarter (qoq). The company also upped its dollar revenue guidance for the financial year from to 11.5-12 per cent from 9-10 per cent.
Reliance Industries ended up over three per cent. RIL’s net profit for the October-December quarter stood at Rs 5,502 crore. Analysts had estimated RIL’s year-on-year revenue to remain flat and net profit to fall 3.3 per cent to Rs 5,300 crore.
TCS ended down three per cent after December quarter earnings were in line with expectations, but volume growth of 1.8 per cent was disappointing.
ITC gained 0.7 per cent. The FMCG major reported a 16.3 per cent jump in net profit at Rs 2,385.34 crore for the quarter ended December 2013, against Rs 2,052 crore in the year-ago period. Net sales rose 13.1 per cent to Rs 8,623 crore.
Wipro slipped marginally. Consolidated net profit rose 27 per cent over a year to Rs 2,015 crore in the quarter. Revenue at Rs 11,332 crore rose 18 per cent, aided by growth in top accounts and key regions, including the US and Europe. On a sequential basis, net profit grew 4.3 per cent and revenue by three per cent. Bajaj Auto gained nearly two per cent. Net profit rose to Rs 904 crore for the quarter from Rs 819 crore in the year-ago period. Net sales dipped five per cent to Rs 5,025 crore and volume 12 per cent 993,690 vehicles.
Markets surged 1.5 per cent in the volatile week ended January 17 led by rate-sensitive shares after the sharp decline in December WPI raised hopes that the Reserve Bank of India (RBI) is likely to maintain status quo on key policy rates.
The 30-share Sensex ended the week up 305 points or 1.5 per cent at 21,064 and the 50-share Nifty ended up 90 points or 1.5 per cent at 6,262.
However, the broader markets witnessed profit taking after gains in the previous weeks underperforming the benchmark indices. The BSE Mid-cap Index ended down 1.4 per cent at 6,487 and the Small-cap index closed 1.4 per cent lower at 6,477.
Most of the gains were seen in earlier part of the week, supported by global cues after weaker-than-expected US jobs data increased the probability that the US Fed may not increase the quantum of stimulus cuts.
The wholesale inflation declined to a five-month low in December on lower vegetable prices. WPI-based inflation stood at 6.16 per cent from 7.52 per cent a month ago, as per the data released by the Ministry of Commerce and Industry. This is the first time since May that headline inflation has declined from the previous month. In November, the WPI inflation was at a 14-month high
The Consumer Price Index (CPI)–based inflation for December had also fallen to a three-month low of 9.87 per cent in December due to a decline in vegetable prices, as per the official data.
Among the rate-sensitive sectors financial shares gained the most. India’s largest mortgage lender HDFC was the top gainer in the segment up five per cent on hopes that steady interest rates would help revival of demand for home loans. In the banking pack, SBI, ICICI Bank and HDFC Bank ended up one per cent each.
In the auto segment except for Maruti Suzuki that slipped nearly one per cent, all other auto majors ended with gains. Larsen & Toubro was among the top gainers in the capital goods space. The company announced receipt of orders worth Rs 1,000 crore. Further, state-owned engineering major BHEL ended as the top Sensex gainer for the week to end 5.4 per cent higher at Rs 171.30.
Infosys ended five per cent higher. The IT major’s third quarter earnings beat street expectations recording a margin expansion of 150 bps quarter-on-quarter (qoq). The company also upped its dollar revenue guidance for the financial year from to 11.5-12 per cent from 9-10 per cent.
Reliance Industries ended up over three per cent. RIL’s net profit for the October-December quarter stood at Rs 5,502 crore. Analysts had estimated RIL’s year-on-year revenue to remain flat and net profit to fall 3.3 per cent to Rs 5,300 crore.
TCS ended down three per cent after December quarter earnings were in line with expectations, but volume growth of 1.8 per cent was disappointing.
ITC gained 0.7 per cent. The FMCG major reported a 16.3 per cent jump in net profit at Rs 2,385.34 crore for the quarter ended December 2013, against Rs 2,052 crore in the year-ago period. Net sales rose 13.1 per cent to Rs 8,623 crore.
Wipro slipped marginally. Consolidated net profit rose 27 per cent over a year to Rs 2,015 crore in the quarter. Revenue at Rs 11,332 crore rose 18 per cent, aided by growth in top accounts and key regions, including the US and Europe. On a sequential basis, net profit grew 4.3 per cent and revenue by three per cent. Bajaj Auto gained nearly two per cent. Net profit rose to Rs 904 crore for the quarter from Rs 819 crore in the year-ago period. Net sales dipped five per cent to Rs 5,025 crore and volume 12 per cent 993,690 vehicles.
The week ahead
HDFC, L&T, Cairn India, Asian Paints and UltraTech Cement will be some of the major companies announcing their third quarter earnings.
FII investment trends will also be in focus as they have remained net buyers of nearly Rs 1,600 crore in January so far.
The movement of the rupee against the US dollar will also be on the radar of market participants.
HDFC, L&T, Cairn India, Asian Paints and UltraTech Cement will be some of the major companies announcing their third quarter earnings.
FII investment trends will also be in focus as they have remained net buyers of nearly Rs 1,600 crore in January so far.
The movement of the rupee against the US dollar will also be on the radar of market participants.