Friday, March 13, 2009

Sectoral Analysis 13-03-09

Sensex surged to 8,757. The NSE Nifty climbed 3.8% .

Key Indian stock indices advanced in a truncated trading week, tracking strong gains across the globe. The lowest rate of inflation in six-and-a-half years (2.34%) also aided the recovery on Dalal Street. Finally, the BSE 30-share Sensex surged 5.2% to close at 8,757. The NSE Nifty climbed 3.8% to shut shop at 2,719, shrugging off negative IIP data for January at -0.5% and continuous selling by the FIIs.

The BSE benchmark Sensex hit an intra-week high of 8,793.21 and low of 8,110.3. While the NSE Nifty hit an intra-week high of 2,726 and low of 2,555.6.

The Foreign Institutional Investors sold stocks worth Rs5.98bn during the week. The Domestic Institutional Investors also offloaded stocks worth Rs1.86bn during the week.

The top gainers: The top gainers in the Sensex were HDFC (up 18.7%), Tata Motors (up 13%), TCS (up 10.1%), Hindalco (up 9.5%) and Wipro (up 9.2%).

The top losers: The top losers in the Sensex were Ranbaxy Labs (down 12.9%), Bharti Airtel (down 7.2%), NTPC (down 5.3%), ITC (down 4.8%) and Hindustan Unilever (down 4.8%).

The Metals sector (up 7.2%): The BSE Metals index was the top gainer among all the sectoral indices. The top gainers in the metal space were Sunflag Iron (up 10.1%), SAIL (up 8.1%), Tata Steel (up 6.6%), Jindal Steel (up 4%) and Adhunik Metaliks (up 3.3%).

The top losers were Tata Metaliks (down 5.9%), Bhuwalka Steel (down 5.4%), Ispat Industries (down 4.5%), Lloyds Metals (down 4.2%) and Monnet Ispat (down 2.6%).

The BSE Auto Index (up 6.8%): The top gainers in the auto were Tata Motors (up 13%), M&M (up 9.7%), Ashok Leyland (up 7.1%), Bajaj Auto (up 6.6%) and Maruti Suzuki (up 4.4%).

The BSE Oil & Gas Index (up 6.4%): The top gainers in the oil & gas space were Gujarat State Petronet (up 9.1%), Cairn India (up 7%), ONGC (up 6.4%) and Great Offshore (up 6.3%).

Reliance Industries advanced over 6% during the week. According to reports, the company sold four diesel cargoes of 65,000 tons each to Hess Corp. This was the companies’ first term contract with the U.S.-based refiner, with supplies beginning in April, stated reports.

The oil refinery stocks were under pressure during the week as crude surged higher. Among the top loser were HPCL (down 14.3%), BPCL (down 10.9%), IOC (down 9.4%), Shiv-Vani Oil (down 8.8%) and Gujarat NRE Coke (down 8.8%).

The BSE Banking Index (up 6.3%): The banking stocks were in momentum this week after Inflation fell to its lowest level in six-and-a-half years in the last week of February partly due to high base of last year. The annual rate of inflation stood at 2.43% for the week ended Feb. 28 compared to 3.03% in the previous week.

The top gainers in the banking space were ICICI Bank (up 14.7%), Axis Bank (up 11.8%), PNB (up 8.2%), Andhra Bank (up 7.8%) and Kotak Mahindra Bank (up 7.5%).

The top losers were Bank of India (down 1.2%), Canara Bank (down 0.7%) and Oriental Bank of Commerce (down 0.2%)

The BSE IT Index (up 5.7%): The top gainers in the IT sector were Satyam Computer (up 20.1%), Patni (up 14.7%), Mphasis (up 10.6%), TCS (up 10.1%) and Financial Tech (up 10%).

The top losers were Sasken Communication (down 3.4%) and Oracle Financial (down 3.2%).

The BSE Capital Goods Index (up 4.1%): The top gainers in the capital goods space were L&T (up 6%), Siemens India (up 3%), BHEL (up 2.9%), LMW (up 1.8%) and Jyoti Structures (up 1.7%).

The top losers were Aban Offshore (down 10.9%), Greaves Cotton (down 10.7%), BEML (down 8.3%), Kirloskar Brothers (down 7.4%) and APIL (down 6.6%).

Industrial production registered a negative growth rate for the second time in a row.
IIP stood at 280.4 in January compared to 281.9 in the same month last year, representing shrinkage of 0.5% from a year earlier.

The BSE Healthcare Index (up 0.8%): The top gainers in the Pharma sector were Zandu Pharma (up 10.1%), Astrazeneca (up 9.1%) and Sun Pharma (up 6.4%).

Dr Reddy's Labs rose nearly 6% during the week after the company won a U.S. court ruling that bolsters its bid to sell a copy of AstraZeneca Plc’s Prilosec heartburn drug without a prescription.

Strides Arcolab surged over 5% during the week.  The company announced that it terminated 'License and Supply Agreement' with KV Pharmaceutical Company, USA, due to the recent developments at KV Pharma which included recall of their products, regulatory actions and filing of a series of class actions by shareholders.

The top losers were Marksans Pharma (down 17.6%), Ranbaxy Labs (down 12.9%), Glenmark Pharma (down 12.5%), Emami Limited (down 7.3%) and Lupin (down 6.5%).

The Telecom Sector: The top gainers in the telecom space were Tata Communication (up 10.8%), Shyam Telecom (up 4.6%) and WWIL (up 0.9%).

RCom surged over 7% during the week after the company announced the roll-out of its CDMA wireless broadband service, Reliance Netconnect Broadband Plus.

The top losers were TTML (down 9.2%), Gemini Comm (down 7.8%), Idea Cellular (down 3.7%) and MTNL (down 3.6%).

Shares of Bharti Airtel declined over 7% during the week amid concerns that lower termination charges would slightly hurt its revenues.

The company also announced that Manoj Kumar Kohli the chief executive officerand Joint Managing Director of Bharti Airtel sold his entire stake in two transactions via open market.

Mr. Kohli sold 70,000 equity shares worth Rs41.1mn on March 9 and on March 6 he sold 53,000 shares valued at Rs31.3mn in the company. Kohli, who held 1.23 lakh shares, representing a 0.006% stake in Bharti, offloaded his entire holding via two open market transactions for Rs72.4mn.

The BSE Consumer Index: The top losers in the consumer durables space were Samtel Color (down 4%), Mirc Electronics (down 2.1%), Whirlpool (down 1.6%) and Su-Raj Diamonds (down 1.5%).

On the other hand, Videocon Industries gained 1.4% during the week.

The Cement Sector: The top gainers in the cement space were Birla Corp (up 6.3%), Grasim (up 5.5%), Shree Cement (up 5.3%), ACC (up 4.2%) and Mangalam Cement (up 1%).