The world over, many stock markets clocked their best week in the last three months. The Indian market was no exception as global cues spurred the bulls to run that extra mile on Friday. Positive data emanating from US lifted market sentiment while an anticipation of a rate cut kept the momentum going through the day.
The S&P BSE Sensex and NSE Nifty extended its winning streak for the fourth straight trading session with the Nifty and Sensex galloping ~280 points and 760 points respectively during this period.
The Nifty ended above the 5900 mark led by the Oil & Gas, FMCG and the Metals stocks. Even the Mid-Cap and the Small-Cap stocks witnessed smart buying.
The Banking stocks were in the limelight ahead of Finance Minister P Chidambarams meet with the board of RBI. The FM is scheduled to address the central board of Reserve Bank in a customary post-Budget meeting. The minister is likely to inform the RBI board about the steps taken to contain fiscal deficit and may underline the need for reducing interest rates to promote growth.
Recent weak trend in WPI has been followed by a dismal Q3 FY13 GDP growth of 4.5% (v/s 5.3% in Q2 FY13). IIP was negative for second consecutive month; another indication of weakening growth. Increase in average LAF borrowing from Rs922bn in Jan2013 to Rs1098bn in Feb2013 indicates liquidity tightening in the system. These factors along with a need to revive investment cycle are likely to persuade RBI to consider growth over inflation. Thereby, we expect repo rate cut of 25bps in the forthcoming monetary policy review, says Amar Ambani, Head of Research, IIFL.
However the realty stocks, which were in rampant mode for the past few days witnessed some profit booking. Even the IT and the Telecom stocks were under pressure.
Finally, the BSE Sensex closed at 19683, up 269 points over the previous close. It had earlier touched a day's high of 19706 and a day's low of 19477. It opened at 19478.
The NSE Nifty closed at 5,945, up 82 points over the previous close. It earlier touched a days high of 5,952 and a days low of 5883. It opened at 5,883.
RIL, Dr Reddys Lab, Tata Power, Hero MotoCorp, L&T, BHEL, HDFC Bank, Bharti Airtel, Coal India, Bajaj Auto, SBI, ICICI Bank, Tata Steel and NTPC were among gainers in Sensex and Nifty.
Infosys, Wipro, TCS, Tata Motors and Maruti were among losers in Sensex and Nifty.
The advance decline ratio was in favour of the bulls. 1731 stocks advanced against 1138 declining stocks, while 106 stocks remained unchanged.
The INDIA VIX up 2% at 13.34 It hit a days high of 13.58 and day's low of 12.85.
Stocks which hit 52-week high during the week were Satyam Comp, Finolex Inds, Rollatainers, Blue Blend India and Modipon.
Stocks which hit 52-week low during the week were Thomas Cook, Wyeth, Punjab Comm, Rama Paper and Rama Petro.
Stocks in News
Oil India gained by 2.6% on Friday. The company on Thursday announced a dividend of Rs 5.18bn as interim dividend at a 110% rate for FY13 to the Petroleum & Natural Gas Ministry. The company declared an interim dividend in January.
Shares of BPCL ended higher by 3.4% after reports came out that the oil major plans to revise diesel prices by mid March. The company plans to hike diesel prices by 40-50p by March 15, added reports.
Hindustan Motors shot up by 17% on Friday after the sales of the company increased in the month of February 2013. The company sold 826 cars and LCVs as compared to the same month last year. HM posted a 147% increase in net profit for the quarter December 31 ending quarter against a loss of almost Rs.43 crore for the same quarter last year.
Most of the Asian markets ended in the positive terrain after Trade data out from China showed that the country recorded a surprise US$15.3bn trade surplus in February. February's exports were 21.8% higher than a year earlier, while imports were 15.2% lower than the year-earlier month.
The Nikkei index in Japan ended higher by 2.6% and the Hang Seng index in Hong Kong rallied on Friday. While the Shanghai Composite index ended slightly lower by 0.24%.
The European markets also were trading higher on Friday, the FTSE index in UK was up 0.3%, the CAC index in France was up 0.8% and the DAX index in Germany added 0.56%.
ECB kept the key rate unchanged at 0.75% in its policy review meet yesterday and later Mario Draghi clarified that another rate cut would come as a result of economy worsening further.