The markets had a tough week due to unwinding of positions around the April derivatives series expiry, mixed set of corporate results and cautious sentiment ahead of the policy review meet scheduled early next week. The Sensex ended lower for five consecutive sessions to wrap up the week at 19,135, down 466 points or 2.3%, which is its lowest closing level since April 19, and the Nifty shed 135 points or 2.2% at 5,749, which is just above the 200 Daily Moving Average (5740). The midcap index ended at 7094, lower by 1.9% and the smallcap index ended at 8715, down 1.8%.
The benchmark indices had a dull start to the week on the back of subdued global cues and losses posted by heavyweight Reliance Industries over the preceding weekend. And things only got worse with each passing day as the mix of domestic factors effectively negated the rather enthusing cues from the global market front.
On the results front, Wipro registered a year-on-year (y-o-y) growth of 14% in consolidated net profit for the fourth quarter ended March 31, 2011, powered by the demand from outsourcing services from clients. However, the IT major gave disappointing guidance and expressed fears of a hit on operating margins, with revenues from the IT services business expected to be in the range of $1,394 million-$1,422 million. The stock resultingly took a hit on the bourses.
The country's largest carmaker Maruti Suzuki reported better-than-expected net profit of Rs 660 crore for the quarter ended March 2011 over the previous year.The growth in net profit over preceding quarter was 16.75%.
Private sector banking giant ICICI Bank reported a 17% rise in consolidated net profit at Rs 1,568 crore for the fourth quarter ended March 31, 2011.
Among the cement pivotals, ACC saw a decline of 10.9% in net profit for the first quarter while UltraTech Cement saw a 7.2% rise in net profit.
More From This Section
And drug firm Strides Arcolab said its consolidated net profit rose by 4.54% to Rs 45.08 crore for the first quarter ended March 31, 2011, vis-a-vis the same period last fiscal.
On the macro-economic front, the food inflation went up marginally to 8.76% for the week ended April 16 from 8.74% in the previous week. During the week under review, fruits became dearer by 28.43% year-on-year, while egg, meat and fish prices went up by 12.14% and onions became expensive by 10.96%. Headline inflation has been above 8% since January 2010. Whether this will have a bearing on policy making in the immediate future will be revealed by the credit policy announcement scheduled on May 3.
Bajaj Auto plunged by as much as 9.7% at Rs 1462 to emerge as the top loser on the BSE Sensex. Bharti Airtel tumbled 8.8% at Rs 378 and BHEL slid 6.2% at Rs 2000. Cipla, DLF and HDFC were the other significant losers. And Reliance Industries slipped below the 1000 mark yet again, falling 1.1% at Rs 981 on a possible penalty for falling short of the targeted gas production at its D6 block. The gas from the block is sold to buyers prioritised by the government.
RCom lost 1.2% at Rs 99 to top the losers list on the BSE on reports that the Enforcement Directorate (ED) had identified assets worth thousands of crores illegally made by companies involved in the 2G scam case and will soon 'attach' them.
And banking stocks declined after the RBI imposed penalties on 19 banks for not complying with its instructions on derivatives. ICICI Bank shed 1.2% to Rs 1,107 and SBI was down 0.8% at Rs 2910.
On the other hand, Wipro strengthened by 1.5% at Rs 450 and TCS gained 1.4% at Rs 1163.
In the midcap index, Rajesh Exports weakened by 13.7% at Rs 85, HDIL shed 13% at Rs 161 and UCO Bank lost 12% at Rs 104. SKS Microfinance, Patni Computers and Dewan Housing Finance were the other significant losers in this space.
In the smallcap space, Atlanta slid by 26% at Rs 82, Kesoram shed 16% at Rs 195 and Subex lost 15% at Rs 66. Kiri Industries, Parry s Sugar and Bodal Chemicals were the other significant losers.
In the capital goods space, Crompton Greaves nodedived by 10% at Rs 252, Punj Lloyd weakened by 8.5% at Rs 66 and Suzlon Energy lost 7.8% at Rs 53. L&T, Reliance Industrial Infra and BGR Energy were the other significant losers.
And in the banking space, Axis Bank corrected by 11% at Rs 1286, Bank of Baroda lost 6.7% at Rs 912 and Kotak Bank lost 6.3% at Rs 430. HDFC Bank lost 4.6% at Rs 2292 and SBI lost 1.9% at Rs 2805.