Weekly Report: BSE gains over 1%, broader market down

India's benchmark share indices ended over 1% higher in the week to December 23, despite slumping to 28-month lows intra-week, after encouraging food inflation data and strong global cues. However, the broader market continues to remain weak as investors shunned investments in mid-caps and small-cap shares.

For the week ended December 23, the 30-share Sensex ended at 15,739 up 247 points or 1.6%. The S&P CNX Nifty closed at 4,714 rising 62 points or 1.3%.

Markets ended lower Monday for the fourth straight session, slumping to fresh 2-year lows in intra-day trades, after recent data vindicated that India's economic growth is slowing down. The Sensex touched a fresh 28-month low of 15,191 and the Nifty touched a low of 4,560, the lowest level for both indices since August 21, 2009.The 30-share Sensex ended at 15,379, down 112 points and the 50-share Nifty ended at 4,613, down 38 points.

Benchmark share indices ended lower for the fifth straight session Tuesday, amid a volatile trading session, on persistent selling by foreign funds with index heavyweight Reliance Industries leading the fall. The Sensex after staging a gradual recovery in noon trades slipped sharply to a low of 15,136. The index finally ended down 204 points or 1.3% at 15,175. Nifty ended down 69 points at 4,544.

India's benchmark shares indices ended over 3% higher Wednesday, snapping a five day losing streak, on the back of shortcovering, with Reliance Industries and financials leading the gains. The 30-share Sensex provisionally ended  at  15,726  up  551 points or  3.5% and the 50-share Nifty provisionally ended at 4,704 up  160  points  or  3.5%.

Benchmark share indices ended higher Thursday, amid a volatile trading session, led by banks after slump in food inflation to 4-year lows, rekindled hopes of rate cut by the central bank sooner than expected. The 30-share Sensex ended at 15,813 up 128 p oints or 0.82% and the 50-share Nifty ended at 4,734 up 41 points or 0.87%.

Food inflation eased sharply to 1.8% in the year to December 10, from an annual 4.35% rise in the previous week, government data showed on Thursday. Food inflation fell sharply to a near four-year low as prices of essential items like vegetables, onion, potato and wheat declined.

The Reserve Bank of India governor Thursday said that India’s GDP will be below 7.6%.

In its second quarter review of monetary policy 2011-12 the central bank had revised the baseline projection of GDP growth for 2011-12 downwards to 7.6% from 8% earlier.

Indian stocks ended lower amid a volatile trading session Friday, snapping two-day gains, on rising concerns that India's growth is likely to be lower than the central bank's revised forecast of 7.6% for 2011-12. The 30-share Sensex ended at 15,739 down 75 points or 0.5% and the 50-share Nifty ended at 4,714 down 20 points or 0.4%.

The gains during the week were led by oil & gas and fast moving consumer goods shares. The BSE Oil & Gas Index was the top gainer during the week under review up 3.3%. Index heavyweight Reliance INdustries gained 3.2% while ONGC gained 4.6%.

Fast moving consumer goods shares gained as lower food inflation raises the purchasing power of consumers. Hindustan Unilever gained 5% and ITC ended 4.3% higher.

Interestingly, in the auto sector, four wheelers and commercial vehicle makers such as Mahindra & Mahindra, Tata Motors and Maruti Suzuki and Ashok Leyland gained while two-wheeler makers Hero Motocorp and Bajaj Auto ended lower.

Tata Motors was the top Sensex gainer up 7.2% followed by ICICI Bank which gained 6.8%.

However, the broader market continued to show signs of weakness with the BSE Mid-cap down 1.7% and Small-cap indices losing 1.3%.

In the mid-cap segment, Wockhardt, UCO Bank, Syndicate Bank, Shoppers Stop, Jain Irrigation Jet Airways, Godfrey Philips and Dena Bank lost 10-18% each.

In the small-cap segment, Bharti Shipyard, Gayatri Projects, GSS Infotech, Sabero Organics and Usher Agro were among the top losers.