Weekly Review: Markets end down after 5 weeks of gain

S Fed's comments that they may move to tamper the QE, SBI and LnT results weigh on investor sentiments

Markets ended lower after five weeks, owing to profit booking at higher levels. Weak corporate results from SBI and Larsen & Toubro along with global cues weighed on sentiments.

The week witnessed sharp sell off with Indices plunging nearly 3% as US Fed's comments that they may move to tamper the QE if data justifies and China’s weak manufacturing data in May spoiled the bull party. Sensex crumbled below 20K peak while Nifty crashed below the 6K mark. BSE Benchmark ended down 582 points or 2.8% at 19,704. Nifty ended down 204 points or 3.2% at 5,984.

Markets ended marginally lower on Monday weighed down by pharma shares on worries that the new price control will sharply reduce drug prices thereby impacting growth and profitability. European and Asian cues took markets further down on Tuesday and Wednesday. Weakness persisted on the bourses for the fourth session of trade on Thursday as world stocks tumbled after disappointing data from China and comments from the US Federal Reserve about tapering its stimulus program stoked worries about slower global growth and less liquidity. Markets ended Friday's session on a positive note on back of short-covering witnessed in capital goods, banks and metal stocks after benchmark indices dropped for four-consecutive trading days.

BSE realty index crashed 11.5% this week to 1,797. Capital goods was dragged 8% by selling pressure in Larsen & Toubro. BHEL's positive result was not able to keep the index in green.

Oil & gas, healthcare and auto indices slipped 3-5% each. However, IT index managed to end unchanged at 5,955.

Broader markets underperformed. BSE mid-cap index ended down 227 points at 6387 whilee small-cap index shed 207 points to 5992.

Sun Pharma shares fell more than 4% during the week after its Israeli unit, Taro Pharmaceuticals, posted a lower-than-expected net profit in the January-March quarter.

SBI was top loser during the week, dropping by over 11%. SBI reported 18.54% decline in Q4 net profit at Rs 3,299 crore on account of lower interest income. It had logged net profit of Rs 4,050.27 crore in the January-March quarter of 2011-12 fiscal.

The standalone total income of the bank rose to Rs 36,331 crore during the quarter, from Rs 33,959 crore in Q4, 2011-12 fiscal, SBI said in a statement.

L&T declined by pver 10% after reporting disappointing Q4 numbers. The company posted a worse-than-expected 6.9% fall in quarterly profit as interest costs jumped for India's biggest engineering and construction company.

Net profit for fourth quarter fell to Rs 1,787 crore from Rs 1,920 crore last year, said the company, whose interests span shipbuilding to railways to real estate.

Coal India rose 4.28% to Rs 310. The company's net profit jumped 89.66% to Rs 2320.61 crore on 21.1% decline in net sales to Rs 121.93 crore in Q4 March 2013 over Q4 March 2012.

Tata Steel rose 0.38%. The company's consolidated earnings before interest, taxation, depreciation and amortization (EBITDA) rose 27.75% to Rs 4368 crore in Q4 March 2013 over Q4 March 2012. EBITDA margin improved to 12.6% in Q4 March 2013, from 10.1% in Q4 March 2012 and 7% in Q3 December 2012.

Bharat Heavy Electricals (Bhel) slipped 4.22%. The company reported 4.2% fall in net profit to Rs 3237.54 crore on 2.2% decline in net sales to Rs 18850.16 crore in Q4 March 2013 over Q4 March 2012.