Markets ended the week marginally higher on the back of strong corporate earnings from major Sensex companies. The BSE benchmark Sensex surged to its highest closing level in over two year, even as broader markets underperformed.
The Sensex jumped 64 points to 20,104 this week. During the same time, Nifty went up 10 points to 6,075.
Broader markets, however, underperformed the benchmark index. The BSE Mid-Cap index fell 2.67% and the BSE Small-Cap index declined 3.09%.
Markets ended higher on Monday led by index heavyweights Reliance Industries and ITC after both companies reported better-than-expected third quarter earnings. Markets reversed gains on Tuesday and slumped in late-noon deals as investor took to booking profits. Consumer durables, realty and capital goods are also down in trades.
Markets ended marginally higher amid a volatile trading session on Wednesday led by financials and telecom shares. Indian shares ended down this Thursday on back of heavy selling pressure witnessed in broader markets which pulled the benchmark indexes to its lowest level in eight days. The Sensex posted its biggest daily percentage gain in almost two weeks on Friday, as interest rate-sensitive stocks such as State Bank of India rallied on expectations the Reserve Bank of India will ease monetary policy next week.
BSE capital goods index surged on the back of buying interest in heavyweight - Larsen and Toubro. The index went up 2.5% at 10,760. FMCG majors- ITC and HUL also saw movement and the index went up 1.5% at 5,836.
Most other sectoral indices underperformed the benchmark. BSE realty index slumped over 5% to 2,183. PSU, auto and consumer durables also saw selling pressure. Bankex and IT index ended flat this week.
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Tata Motors dropped 8% to Rs 301 following its announcement last week that the Group's global wholesales, including Jaguar Land Rover, totaled 98,968 units, in December 2012.
HDFC, a housing finance provider, reported a net profit of Rs 1,140 crore for the third quarter ended December 31,2012. This marks a 16% growth from Rs 981 crore for the year-ago period. The total income increased 17% to Rs 5,250 crore as against Rs 4,472 crore in the same period a year ago. HDFC dived down 2% to Rs 805.
Index heavyweight Reliance Industries added 1.4% to Rs 912 after reporting a better-than-expected 24% year-on-year growth in net profit at Rs 5,502 crore for the quarter ended December 31, 2012 (Q3) on account of higher than expected profitability from refining segment.
ITC ended 5% higher at Rs 299 on reporting a 21% year-on-year (yoy) jump in net profit at Rs 2,052 crore for the third quarter ended December 31, 2012 (Q3) due to higher volumes and price increase in cigarettes.
Hindustan Unilever, however, was down 3% after a number of investment banks, including Credit Suisse and Nomura, cut their ratings on slower-than-expected volume growth and a hike in royalty payments.
BHEL gained 1.3% at Rs 230 after it said it has achieved a significant milestone in Africa with the successful commissioning of its first Steam Turbine Generator (STG) Unit in Ethiopia. Significantly, this is also the company's first STG set to be commissioned in the African continent, Bhel said in a statement.
Oil and Natural Gas Corporation added 1% on reports that the government may raise the gas prices sometime this calendar year. ONGC has surged 6.3% to Rs 354, while Oil India soared 4% to Rs 555 on the Bombay Stock Exchange.
The other notable movers included Maruti Suzuki, country's biggest car-maker, gaining 4% at Rs 1,596 after the company reported a better-than-expected 144% year-on-year (yoy) growth in net profit of Rs 501 crore for the third quarter ended December 31, 2012 (Q3) due to higher sales and good response to new models like Ertiga and Swift Dzire. Shares of Maruti zoomed 3.5% at Rs 1,600.
Larsen & Toubro's net profit rose 13% to Rs 1122 crore on 10.77% growth in total income to Rs 15959.54 crore in Q3 December 2012 over Q3 December 2011. L&T surged 4.61% to Rs 1,607 and was the top gainer among Sensex stocks.