Weekly: Nifty reclaims 8,800; broader markets outperform

The 30-share Sensex ended up 377 points or 1.31% at 29,095 and the Nifty ended up 144 points or 1.67% at 8,806

The benchmark share indices rebounded in the week to February 13, with the Sensex and the Nifty reclaiming 29,000 and 8,800 levels, respectively. Gains were led by better-than-expected quarterly earnings posted by blue chip companies.

Further, expectation of reform-oriented announcements in the Union Budget on February 28 along with recovery among global markets encouraged by upbeat German growth data also boosted sentiment.

The 30-share Sensex ended up 377 points or 1.31 per cent at 29,095 and the 50-share Nifty ended up 144 points or 1.67 per cent at 8,806. In the broader market, the BSE Mid-cap Index gained 2.38 per cent, while the Small-cap Index surged 1.46 per cent, outperforming the benchmark indices.

Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net Rs 2,495 crore into the secondary equity market during four trading sessions from February 9, 2015 to February 12, 2015.

Leaders & Laggards

The BSE Healthcare Index and BSE Bankex surged between 3 and 4 per cent. Sectors like Auto, Consumer Durables, Metal, FMCG and Capital Goods gained between 1 and 2 per cent. However, BSE Realty and Oil & Gas indices ended in negative zone.

Shares of pharmaceutical companies were in demand after reporting a good set of numbers for the quarter ended December 2014. Dr Reddy’s Labs was the top Sensex gainer, up over 9 per cent.

Cipla gained nearly 2 per cent in BSE after the company, through its UK-based subsidiary Cipla (EU) Limited, entered into a joint venture (JV) agreement with Cipla’s existing business partners in Morocco – Societe Marocaine De Cooperation Pharmaceutique (Cooper Pharma) and the Pharmaceutical Institute (PHI).

SBI rallied nearly 6 per cent after the state-owned bank said its gross non-performing assets as a percentage to total advances rose marginally at 4.90 per cent as on December 31, 2014 (Q3FY15) compared to 4.89 per cent in the September quarter.

ICICI Bank and Axis Bank gained on hopes that slowing IIP will boost pressure on the central bank to cut interest rates.

M&M surged almost 4 per cent post the announcement of Q3 numbers. The company reported a consolidated net profit of Rs 930 crore for the third quarter, down 24 per cent  compared to Rs 1,230 crore in the year-ago period.

Coal India gained 4 per cent. The company recorded a 16 per cent fall in its consolidated net profit to Rs 3,262 crore for the December quarter. The net sales during the quarter under review stood at Rs 17,763 crore – a 5 per cent rise over Rs 16,928 crore in the year-ago period.

Hindalco Industries rose 4.17 per cent at Rs 153.50. The company's net profit rose 7.59 per cent to Rs 359.36 crore on 17.89 per cent rise in total income to Rs 8,815 crore in the Q3 December 2014 over Q3 December 2013.

On the losing side, GAIL lost 3 per cent after the company posted a massive 64 per cent drop in its December quarter net profit, as it was unable to sell imported gas contracted at higher price.

Bharat Heavy Electricals fell 1.8 per cent, after the net profit fell 69.4 per cent to Rs 212.60 crore on 27.48 per cent decline in total income to Rs 6472.06 crore in the Q3 December 2014 over Q3 December 2013.

Larsen & Toubro (L&T) slipped over 1 per cent after reporting a 14 per cent decline in standalone net profit at Rs 1,060 crore for the quarter ended December 2014. It was Rs 1,240 crore for the same period a year ago.

The week ahead

Markets could witness an upswing, as foreign institutional investors which remained net sellers last week turn buyers especially in companies that have announced robust third quarter earnings.

On Monday, the government will release inflation data based on wholesale price index for January 2015.