Weekly Update: Markets gain on quarterly nos, Sebi decision

Weekly market update

Sebi's decision to allow physical settlement of stock derivatives and a good set of quarterly numbers from Indian companies saw the markets gaining this week.

The Sensex opened at 17,876 and slipped to a low 17,855. However, it surged over the 18K mark after 29 months to touch a high of 18,167 on Wednesday. The week finally ended with the Sensex gaining 122 points (0.6%) at 17,956.

The Nifty added 42 points to 5,394.

Headline inflation, as measured by the Wholesale Price Index (WPI), inched higher to 10.5% in June, owing to the pass-through effect of the increase in prices of petroleum products on June 25.

Stock market regulator, Securities and Exchange Board of India (Sebi) allowed stock exchanges to go for both physical and cash settlement in futures and options (F&O) trading. Under physical settlement, the derivatives contract has to be settled with the delivery of underlying shares, while in cash settlement change in the price of a contract has to be paid.

Results season started with IT heavyweight, Infosys, which stumped the markets by reporting a lower-than-expected net profit. It, however, increased its full-year revenue prediction. The company's consolidated net profit dropped 2.4 per cent to Rs 1,488 crore for the quarter ended June 30, compared to the corresponding quarter last year. Sequentially (compared to the trailing January-March quarter), its net was down by 7 per cent as against Rs 1,600 crore.

Among others TCS and HDFC also declared its quarterly numbers.

In other news, the Indian currency got a new symbol, joining the ranks of currencies like the $ and Sterling pound.

BSE mid cap and small-cap indices outperformed the broader indices. The mid-cap index jumped 1% to 7,397. Small-cap index surged 1.8% to 9,443.

Among the sectoral indices, BSE consumer durables soared 4% to 5,182. Bankex and capital goods indices gained 2-3% each.

However, the BSE oil & gas index dropped 1%, followed by the PSU and auto sectors. IT dropped to a low of 5,312 but maanged to rebound on TCS results and ended flat at 5,459.

DLF and Tata Motors soared 8% each to Rs 320 and Rs 771, respectively. TCS surged 7.5% to Rs 775.

Jaiprakash Associates rallied 4% to Rs 125. Banking stocks were in the green. ICICI Bank and SBI added over 3% each to Rs 872 abd Rs 2,368, respectively. HDFC Bank was up 2% at Rs 2,003.

On the other hand, Mahindra & Mahindra slumped 5.3% to Rs 638. Infosys shed 3.2% at rs 2,872 on weak quarterly numbers.

Reliance Communications and Bharti Airtel dropped 3% each to Rs 193 and Rs 308, respectively.

Maruti Suzuki, ONGC and ACC and Cipla were some of the other losers in the market today.