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Benchmark share indices ended the week at record closing highs led by rate sensitive shares as easing inflation raised hopes of a rate cut by the central bank. Further decline in global crude oil prices also boosted the investor sentiment.
The Sensex and the Nifty ended at record closing highs in the week ended November 14. The 30-share Sensex ended up 178 points or 0.6 per cent at 28,046.66 and the 50-share Nifty ended up 53 points or 0.6 per cent at 8389.9.
The broader markets outperformed the benchmarks with BSE Mid-cap index rising 1.6 per cent and BSE Small-cap index ended 0.9 per cent higher.
Consumer price inflation for October dipped to 5.52 per cent, down from 6.46 per cent in September, a decline that is likely to sharpen calls for interest rate cuts by the Reserve Bank of India.
Wholesale price index-based inflation plunged to a five-year low of 1.77 per cent in October from 2.38 per cent in September.
India's industrial growth for September came in at 2.5 per cent versus a revised 0.4 per cent for August.
Foreign investors were net buyers in equities to the tune of Rs 2,600 crore during the week, as per provisional stock exchange data.
Among the rate sensitive sectors, BSE Bankex, Auto and Realty indices ended up 1.3-1.8 per cent each while FMCG index was the top gainer up nearly three per cent.
In the banking pack, State Bank of India ended up 1.7 per cent. The bank posted 30.5 per cent rise in net profit at Rs 3,100 crore for the second quarter ended September 2014 as compared to Rs 2,375 crore in the same period of the previous year, due to robust growth in income from interest, fees and control over costs.
Further, SBI’s associate banks such as State Bank of Travancore, State Bank of Mysore and State Bank of Bikaner & Jaipur gained on reports that it would unveil merger plans with the bank. Among others, HDFC Bank, Axis Bank and ICICI Bank ended up 0.6-2.3 per cent each.
Bajaj Auto was the top gainer in the auto pack up 4.3 per cent followed by Hero MotoCorp, Maruti Suzuki and Mahindra & Mahindra. However, Tata Motors ended down 1.9 per cent. The auto major reported seven per cent drop in net profit at Rs 3,291 crore for the quarter from Rs 3,542 crore posted in the same period of 2013-14.
In the realty pack, DLF gained 5.4 per cent. The company posted 9 per cent jump in its consolidated net profit at Rs 109 crore for the quarter ended September on the back of higher sales.
Cipla was the top Sensex loser to end 6.4 per cent lower after the company posted 16 per cent drop in consolidated net profit at Rs 299 crore for the quarter ended September 30 this year. Analysts had estimated a net profit of around Rs 354 crore for the September quarter.
BHEL ended down 1.2 per cent after its net profit slumped nearly 73 per cent to Rs 125 crore in the quarter ended September compared to Rs 456 crore last fiscal as lower revenues from power and industry segments took a toll on its profitability. L&T ended down 1.9 per cent.
Week ahead
With the second quarter earnings season coming to an end global cues in the form of policy decision by global central banks, movement of crude oil prices would be in focus.
Japan will release its preliminary third-quarter GDP data on Monday, November 17 and the US will release its industrial production data for October. The US Fed will release the minutes of its October 28-29 meet on Wednesday, November 19.
Further, the outcome of the G-20 meet in Australia will be in focus and Prime Minister Narendra Modi said that repatriation of black money stashed abroad is a priority for his government.
