SENSEX 16152.75 +82.27
NIFTY 4891.45 +21.25
USD/INR 0054.86 +00.40
NASDAQ 2815.26 +00.00
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UPDATEDTIME 09.28 PM 18 MAY 2012
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Sensex recovered from its lowest intraday level since Jan. 9 to gain
on Friday after stronger-than-expected earnings from State Bank of India
relieved concerns about non-performing assets and credit growth in the lending
sector.
The earnings from India's biggest bank offset a day of continued global risk aversion that pummelled Asian shares, but were not enough to prevent the BSE index from posting its fourth consecutive weekly loss.
Analysts said the gains on Friday would prove temporary, and that concerns about global markets, as well as about India's economic and fiscal challenges would soon dominate trade.
Slowing policy reforms from the government have also been a key concern for investors, and have contributed to send the rupee to its third consecutive daily record low against the dollar on Friday.
Changes on policy front are required and I don't expect that to happen ... and therefore markets may go to December lows because of deteriorating macro conditions.
The 30-share BSE index gained 0.5 percent to 16,152.75 points, after earlier falling as much as 1.6 percent to four-month lows, and not far levels in December when Indian markets were also hit hard by global as well as domestic factors.
India's main index fell 0.86 percent for the week. The 50-share NSE index added 0.44 percent to end at 4891.45 points on Friday.
SBI rose 5 percent and was among the day's big gainers after it reported net profit surged to 40.50 billion rupees ($738 million) for the January-March quarter from a small profit a year earlier.
Analysts were particularly heartened after SBI set aside 28.4 billion rupees for bad loans in the March quarter, nearly 13 percent less than in the same period a year earlier.
SBI's gains pushed up other banks, with ICICI Bank , the country's biggest private lender, rose 2.3 percent.
Shares of airlines surged as the steep falls in crude oil prices helped offset worries that a dropping rupee would raise the cost of fuel imports.
Jet Airways rose 6.3 percent while Spicejet ended 8.7 percent higher. Mahindra Satyam gained 5.7 percent after reporting swinging to a better-than-expected profit of 5.34 billion rupees ($97.88 million) in Jan-March from a loss of 3.27 billion rupees in the same period last year.
But some blue chips extended a rout, with shares in Tata Motors down 4.15 percent, on continued worries about global sales after it reported flat growth in April, shedding 12.64 percent for the week.
India's auto shares are the biggest losers this week with the auto index down 5.6 percent, as a record low rupee is seen raising the cost of imports, royalty payments.
Maruti Suzuki fell 3.2 percent. Power equipment maker Bharat Heavy Electricals fell 2.6 percent, having hit on Friday its lowest since October 2008, while non-ferrous metals producer Hindalco Industries lost 0.8 percent, having earlier hit its lowest since September 2009.
The earnings from India's biggest bank offset a day of continued global risk aversion that pummelled Asian shares, but were not enough to prevent the BSE index from posting its fourth consecutive weekly loss.
Analysts said the gains on Friday would prove temporary, and that concerns about global markets, as well as about India's economic and fiscal challenges would soon dominate trade.
Slowing policy reforms from the government have also been a key concern for investors, and have contributed to send the rupee to its third consecutive daily record low against the dollar on Friday.
Changes on policy front are required and I don't expect that to happen ... and therefore markets may go to December lows because of deteriorating macro conditions.
The 30-share BSE index gained 0.5 percent to 16,152.75 points, after earlier falling as much as 1.6 percent to four-month lows, and not far levels in December when Indian markets were also hit hard by global as well as domestic factors.
India's main index fell 0.86 percent for the week. The 50-share NSE index added 0.44 percent to end at 4891.45 points on Friday.
SBI rose 5 percent and was among the day's big gainers after it reported net profit surged to 40.50 billion rupees ($738 million) for the January-March quarter from a small profit a year earlier.
Analysts were particularly heartened after SBI set aside 28.4 billion rupees for bad loans in the March quarter, nearly 13 percent less than in the same period a year earlier.
SBI's gains pushed up other banks, with ICICI Bank , the country's biggest private lender, rose 2.3 percent.
Shares of airlines surged as the steep falls in crude oil prices helped offset worries that a dropping rupee would raise the cost of fuel imports.
Jet Airways rose 6.3 percent while Spicejet ended 8.7 percent higher. Mahindra Satyam gained 5.7 percent after reporting swinging to a better-than-expected profit of 5.34 billion rupees ($97.88 million) in Jan-March from a loss of 3.27 billion rupees in the same period last year.
But some blue chips extended a rout, with shares in Tata Motors down 4.15 percent, on continued worries about global sales after it reported flat growth in April, shedding 12.64 percent for the week.
India's auto shares are the biggest losers this week with the auto index down 5.6 percent, as a record low rupee is seen raising the cost of imports, royalty payments.
Maruti Suzuki fell 3.2 percent. Power equipment maker Bharat Heavy Electricals fell 2.6 percent, having hit on Friday its lowest since October 2008, while non-ferrous metals producer Hindalco Industries lost 0.8 percent, having earlier hit its lowest since September 2009.
Among sectoral
indices, the BSE Bankex was up 1.27 percent, the BSE FMCG Index gained 0.77
percent, the BSE Oil & Gas Index was 0.64 percent higher and the BSE Power
Index was up 0.15 percent.
State Bank of India (4.14 percent), NTPC (3.41 percent), Sterlite Industries (2.13 percent), ICICI Bank (1.61 percent) and GAIL (1.53 percent) are among the gainers.
The losers included Tata Motors (3.84 percent), Maruti Suzuki (3.66 percent), Bajaj Auto (2.35 percent), Tata Steel (2.22 percent) and BHEL (1.63 percent).
CLSA maintained a 'buy' recommendation on Tata Motors with a target price of Rs 370 per share even as the company's global sales of luxury brands Jaguar Land Rover fell 31 percent month-on-month. It doesn't see any evidence of a broad-based demand weakness, and expects the company to report a consolidated net profit of Rs 4,270 crore, up 70 percent YoY.
European markets continued to remain under pressure. The FTSE 100 was down 0.55 percent, the CAC 40 fell 0.95 percent and the DAX moved 0.68 percent lower.
State Bank of India (4.14 percent), NTPC (3.41 percent), Sterlite Industries (2.13 percent), ICICI Bank (1.61 percent) and GAIL (1.53 percent) are among the gainers.
The losers included Tata Motors (3.84 percent), Maruti Suzuki (3.66 percent), Bajaj Auto (2.35 percent), Tata Steel (2.22 percent) and BHEL (1.63 percent).
CLSA maintained a 'buy' recommendation on Tata Motors with a target price of Rs 370 per share even as the company's global sales of luxury brands Jaguar Land Rover fell 31 percent month-on-month. It doesn't see any evidence of a broad-based demand weakness, and expects the company to report a consolidated net profit of Rs 4,270 crore, up 70 percent YoY.
European markets continued to remain under pressure. The FTSE 100 was down 0.55 percent, the CAC 40 fell 0.95 percent and the DAX moved 0.68 percent lower.
Regards
RAKESH MAKIN
+91,
9041667797(DIRECT), 9915684997
OFF
0172-4657997
PANCHKULA (Haryana).
Email:makin_97@yahoo.com
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