Weekly: Markets end higher, Sensex up 8% in FY13

Gains during the week were led by gains in software shares ahead of the fourth quarter earnings and rebound in private bank shares

Benchmark share indices ended marginally higher in the truncated trading week ended March 28 led by software shares and rebound in shares of private banks after the sharp correction last week.

The markets were closed on Wednesday, March 27, on account of Holi (Festival of Colours) and Friday, March 29, on account of Good Friday.

The 30-share Sensex ended up 0.5% at 18,836 and the 50-share Nifty ended up 0.5% at 5,683.
Last week, both the Sensex and Nifty had crashed nearly 4% amid political uncertainty after DMK pulled out of the ruling UPA coalition and continuing debt crisis in the euro zone pertaining to Cyprus bailout.

For the fiscal 2012-13 the 30-share Sensex ended up 8.2% while the 50-share Nifty ended up 7.3%

Consumer Durables Index which witnessed persistent selling over the past fortnight amid concerns of rising inflation rebounded this week to end nearly 4% higher. Among other sectoral indices on the Bombay Stock Exchange which gained include, Metal, IT, Bankex and FMCG.

ONGC was the top Sensex gainer which gained 5.3%. Last week, Cabinet Committee of Investments (CCI) has cleared the exploration and developmental activity of contractors including Reliance Industries, Cairn India and ONGC.

Coal India ended up 3.9% after the company said its board has approved to convert the Loan & Current Account balance granted to BCCL, its 100% subsidiary aggregating to Rs. 2539 crores into 5% Non-Convertible, Redeemable Cumulative Preference Shares as recommended by the Audit Committee of CIL on date.

Shares of private banks which witnessed heavy selling pressure post the Cobrapost report on allegations of money laundering firmed up after the respective senior management swung into action to investigate into Cobrapost's claims. HDFC Bank ended up 3.1% while ICICI Bank gained 1.6% and mortgage lender HDFC rose 3.7%.

In the defensive sector FMCG majors ITC and Hindustan Unilever ended up over 1.3% each.

Shares of software majors gained ahead of the fourth quarter earnings season which kick off with Infosys scheduled to announce its results on April 12. Infosys gained 1%, TCS rose 2% and Wipro ended with marginally higher.

Auto shares were among the top Sensex losers as sales growth continues to take a hit amid lack of demand. It may be recalled that passenger car sales in the Indian market hit a 12-year low in February, declining 25.7 per cent to 158,513 units, as high interest rates and rising fuel costs continued to keep off consumers from showrooms. Sales of commercial vehicles in February, a key indicator of economic health, fell for a third month in succession, by 11.1 per cent to 68,388 units. Hero Honda was the top Sensex loser down 6.9% followed by Maruti Suzuki down 1.8%, Bajaj Auto and M&M slipped 1.5% while Tata Motors ended 0.4% lower.

Capital goods shares continue to remain weak amid lack of investment. For the April-January period, capital goods contracted a whopping 9.3 per cent, against 2.9 per cent in April-January 2011-12. L&T lost 2.4% while BHEL ended 1.7% lower.

Meanwhile, rising current account deficit will continue to weigh on market sentiment in the week ahead as data released by the Reserve Bank of India after market hours on Thursday showed that the country's current account deficit increased more than expected to Rs 32.6 billion or 6.7% of GDP in the third quarter ended December 2012. The current account deficit in the second quarter ended September 2012 stood at Rs 22.6 billion or 5.4% of GDP.