Markets ended higher this week as RBI cut repo rate in its monetary policy review and several companies came out with their financial results. Markets continued smart gains on Thursday as global markets rose.
The Sensex ended up 279 points or 1.6% at 17,374. Nifty advanced 83 points or 1.6% at 5,291.
Sensex gained marginally on Monday on the back of auto and banking shares. It extended gains on Tuesday as the Reserve Bank of India (RBI) cut repo rate by an unexpectedly sharp 50 basis points.
The RBI cut its policy repo rate to 8%, compared with market and expert expectations for a 25 basis point cut. It kept the cash reserve ratio (CRR), the portion of deposits which banks are required to keep with the central bank, unchanged at 4.75%. It also warned that India's current account deficit, which widened to 4.3% of GDP in the December quarter, is "unsustainable" and will be difficult to finance given projections of lower capital flows to emerging markets in 2012.
Meanwhile, India's wholesale price index (WPI) rose a faster-than-expected 6.89% in March from a year earlier, mainly driven by higher food prices, government data showed on Monday. The annual reading for January was revised up to 6.89% from 6.55%, the government said in the release.
BSE auto index soared nearly 6% this week with most of the major auto companies moving up smartly. BSE metal index rose 3% followed by FMCG index. However, BSE bankex and realty indices underperformed the benchmark index and advanced 0-1% each.
HDFC Bank ended higher by 4% to Rs 551 near its lifetime high price post the Q4FY12 results. The bank reported a 30.3% rise in net profit to Rs 1,453 crore, beating analyst forecasts, helped by higher fee income and credit demand as well as lower provisions for loan losses.
HCL Technologies rallied 6% to Rs 505 after reporting a better-than-expected 5.2% quarter-on-quarter (qoq) growth in net profit at Rs 603 crore for the third quarter ended March 2012. India's fourth largest software services exporter, had a net profit of Rs 573 core in previous quarter. However, consolidated sales declined 0.6% to Rs 5,216 crore on q-o-q basis.
Tata Motors ended higher by 10% to Rs 317 (near its lifetime high price) after the India's largest automobile company entered the elite club of companies with Rs one trillion market value on the back of strong global sales for the month of March, joining Reliance Industries, ONGC, Coal India and TCS.
M&M moved higher by 5% at Rs 727 on reports that the government approved the foreign direct investment (FDI) proposal worth of Rs 25.99 crore for company’s radar systems.
Maruti Suzuki ended up 5% at Rs 1,391. The company has started a campaign on "Live life with LUV (Life Utility Vehicle)" adverts as it promotes its new Ertiga model, and stock investors appear to have responded in kind.
Market heavyweight, Reliance slipped 2.6% to Rs 731 ahead of its quarterly results. After market closing on Friday, RIL reported a 21% fall in its net profit to Rs 4,236 crore in the quarter ending March 2012, as compared to Rs 5,376 crore in the same quarter a year earlier, even as it sprung a surprise with higher than expected gross refining margins (GRM).
Larsen & Toubro moved up 1% at Rs 1,292 following announcement that the SUN Group has commissioned one of the fastest executed solar projects in India at the Gujarat Solar Park, which was inaugurated by the Honourable Chief Minister, Narendra Modi in the Patan district. The 6MW project was completed in a little over 3 months in association with L&T, who provided the EPC services for the project.
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