Weekly: Markets end flat to keep winning spree intact

Broader markets outperformed with the BSE Mid-cap index topping 10,000 mark after six years

Benchmark share indices managed to keep their winning spree intact for the fifth straight week as record highs on Monday helped offset losses in the latter sessions of the week ended September 12.

The 30-share Sensex ended up 34 points at 27,061 and the 50-share Nifty closed 19 points higher at 8,106.

However, the action shifted to the broader markets this week with both the BSE Mid-cap and Small-cap indices hitting 52-week highs of 10,018.51 and 11,202.46, respectively. Interestingly, the BSE Midcap index crossed the 10,000 mark after a gap of more than six years. The index had breached this mark for the first time on January 2, 2008 and is just 227 points shy of its record high of 10,246 touched in intra–day trade on January 8, 2008.

The BSE Mid-cap index ended up 3% at 9,983 and the BSE Small-cap index ended up 5% at 11,167.

Consumer Price Index (CPI)-based inflation in August eased to 7.8%, slightly lower than 7.96% in July. However, food inflation during the month under review rose to 9.42% over 9.36% in July, an official release said.

In July, India's industrial growth fell to 0.5 per cent, the lowest this financial year, owing to contraction in manufacturing after three months, official data showed on Friday. While industrial growth in June stood at 3.9 per cent, it was 2.6 per cent in July 2013.

Meanwhile, India recorded its heaviest spell of monsoon rains in 2014 in the past week, logging in surplus for the second straight week, raising hopes of a delayed retreat of the four-month season.

Cipla emerged as the top Sensex gainer up nearly 10% after the pharma major said it has entered into a commercial collaboration with S&D Pharma in the Czech Republic and Slovakia. S&D Pharma, which represents other global drug companies in the two countries, will physically distribute all products, including those to treat respiratory ailments.

SBI ended up 4.4%. The state-owned banking major denied receiving any communication from the British banking regulator, Prudential Regulatory Authority, asking it to convert branches in the island nation into a wholly-owned subsidiary.

Tata Motors ended up 2% after its UK-based premium luxury car maker Jaguar Land Rover reported 9% rise in August sales at 30,249 units.

Maruti Suzuki ended up 3% after the company projected double-digit sales growth during the current financial year.

State-owned ONGC ended down 3% and Coal India closed 3.6% lower after the Cabinet Committee on Economic Affairs approved selling 10% of the government's stake in Coal India, 5% in ONGC.

ITC rebounded to end with marginal gains of 1.6%. According to media reports, the government may come out with stringent measures to curb smoking.

Snowman Logistics, the country's largest cold storage warehousing chain, saw its shares soar at stock market debut on Friday. The stock closed at Rs 79.80, up 70 per cent compared to its issue price of Rs 47 a share.

Week Ahead

The markets could be under pressure early next week after data showed weak industrial growth in July.

The government is also scheduled to release wholesale price inflation data for August on Monday.

Further, stock specific movement could be seen after second instalment of advance tax payments by corporates on are released on Monday, September 15.

The initial public offering from Shemaroo Entertaiment opens on Tuesday, September 16, in the price band of Rs 155-170 per share of face value Rs 10 each to raise upto Rs 120 crore.

On the global front, cues from the US Federal Reserve two-day policy meet which ends on Wednesday will be closely watched.