Friday, March 6, 2009

Indian Share Markets - BSE / NSE weekly review 06-03-09

For the week, Sensex lost 6.4% to 8,326 and the NSE Nifty lost 5.2% to 2,620.

Key indices continued to trudge lower this week, shrugging off lower inflation and rate cuts. The RBI reduced short-term rates by 50 bps in its continuing bid to nudge banks to lower borrowing costs. The BSE 30-share Sensex lost 6.4% to 8,326 and the NSE Nifty lost 5.2% to 2,620. The rupee’s sharp depreciation against the dollar also continued to make matters worse for Indian stocks, leading to acceleration in selling by the FIIs.

The BSE benchmark Sensex hit an intra-week high of 8,762.88 and low of 8,047 while, the NSE Nifty index hit an intra-week high of 2,764.6 and low of 2,539.

The Foreign Institutional Investors sold stocks worth Rs20.8bn during the week. The Domestic Institutional Investors also offloaded stocks worth Rs2.46bn during the week.

The top gainers: The top gainers in the Sensex were Cipla (up 6.3%), Ambuja Cements (up 5.8%), Wipro (up 2.8%), Hindalco (up 2.2%), Grasim (up 2.1%).

The top losers: The top losers in the Sensex were Reliance Capital (down 18.7%), ICICI Bank (down 17.8%), Ranbaxy (down 12.7%), Tata Power (down 12.1%) and Hindustan Unilever (down 11.7%).

The BSE Consumer Index: The top losers in the consumer durables were Su-Raj Diamonds (down 9.7%), Mirc Electronics (down 3.6%), Titan (down 3.4%), Videocon Industries (down 3%) and Whirlpool (down 2.1%).

The BSE Banking Index (down 12%): The BSE banking index was the top loser despite RBI cut key interest rates. The central bank reduced the repo rate by 50bps from 5.5% to 5.0% and reverse repo rate by 50bps from 4.0% to 3.5%.

Even inflation dropping to a six year low had a minimal impact on the sentiment. Inflation stood at 3.03% in the week ended Feb 21 as against 3.36% in the previous week. It was expected to come in between 3% and 3.1%. This is the lowest reading on India's WPI-based inflation since Oct. 19, 2002.

The top losers in the banking space were Yes Bank (down 9.5%), Axis Bank (down 9.2%), ICICI Bank (down 8.9%), Bank of Baroda (down 7.4%) and Bank of India (down 6.6%),

However, bucking the negative trend were, Federal Bank (up 1.7%) and Karnataka Bank (up 1%)

The BSE Capital Goods Index (down 5.7%): The capital goods stocks were under pressure ahead of the IIP data to be announced next week. Meanwhile, the six key infrastructure sectors grew by just 1.4% in January.

The top losers in the capital goods were Aban Offshore (down 27%), Alstom Projects (down 18.7%), Gammon India (down 18.3%), Greaves Cotton (down 12%) and Kirloskar Brothers (down 10.8%).

The BSE Oil & Gas Index (down 5.6%): The top losers in the oil & gas space were Hindustan Oil Exploration (down 14.2%), Gujarat NRE Coke (down 11.7%), Great Offshore (down 11.1%), Chennai Petroleum (down 7.9%), Reliance (down 7.6%) and Reliance Petroleum (down 6%).

The boards of RIL and RPL approved their merger. Shareholders of RPL will receive 1 fully paid equity share of RIL for every 16 fully paid equity shares of RPL held by them on the record date to be fixed later.

The Realty Sector (down 4.7%): The top losers in the real estate were Anant Raj Industries (down 12.2%), Ansal Properties (down 9.3%), Parsvnath (down 8%), Unitech (down 7.4%) and HDIL (down 7%).

The Metals sector (down 3.5%): The top losers in the metal space were Lloyds Metals (down 10.6%), Tata Metaliks (down 10%), Bhuwalka Steel (down 9.7%), Tata Steel (down 9.3%) and Jindal Stainless (down 9.1%).

The BSE Auto Index (down 3.2%): The top losers in the auto space were Bajaj Auto (down 9%), Swaraj Mazda (down 8.7%), Tata Motors (down 7.1%), Ashok Leyland (down 4.5%) and Maruti (down 4.1%).

The top gainers in the auto space were M&M (up 2%) and Hindustan Motors (up 1.8%)

The BSE Healthcare Index (down 2%): The top gainers in the Pharma space were Cipla (up 6.3%), Astrazeneca Pharma (up 4.1%) and Pfizer (up 1.6%).

Aurobindo Pharma rose over 4.5% during the week. Pfizer announced that it has tied up with the company to commercialize medicines that are no longer patent protected, and have lost market exclusivity in the US and Europe.

The top losers were Dishman Pharma (down 16.6%), Natco Pharma (down 14%), Ranbaxy (down 12.7%), Piramal Healthcare (down 11.5%) and Glenmark Pharma (down 11.3%).

The BSE IT Index (down 1.1%): The top losers in IT sector were Oracle Financial (down 11.3%), Sasken Communication (down 6.3%), HCL Tech (down 6.1%), Infosys (down 1%) and TCS (down 0.3%).

The top gainers were Patni Computer (up 12.8%), Mphasis (up 8.5%), Financial Tech (up 4.7%), Wipro (up 2.8%) and Satyam (up 1.9%).

The Cement Sector: The top gainers in the cement sector were Ultratech Cement (up 5.8%), Birla Corp (up 4.3%), India Cements (up 2.2%), Grasim (up 2.1%) and Shree Cement (up 1.8%).

The top losers in the cement space were Gujarat Sidhee (down 17.4%), Binani Indus (down 8.2%), Mangalam Cement (down 7.3%), Kakatiya Cement (down 5.6%) and Prism Cement (down 5.2%).

The Telecom Sector: The top losers in the telecom sector were WWIL (down 18.4%), HFCL (down 14.5%), RCOM (down 11.3%), Bharti Airtel (down 5.7%) and Shyam Telecom (down 5.1%).