Sensex makes a comeback, ends 82 pts up on SBI showPosted on Saturday, May 19, 2012 - 15:27 pm
The BSE Sensex and NSE Nifty showed a nice rebound in late trade on Friday led by outstanding performance by SBI in fourth quarter numbers and sharp recovery in rupee from record low to near previous close. However, the global markets stayed under pressure due to eurozone concerns and weak US data.
Short covering helped markets close higher on Friday. The BSE benchmark rose 82.27 points or 0.51%, to close at 16,152.75 after seeing recovery of more than 300 points from intraday low of 15,809.71.
The NSE benchmark fell below the 4800 level to hit a low of 4,788.95 during the day, before closing at 4,891.45, up 21.25 points or 0.44% led by support from banks, oil & gas, FMCG, steel and technology stocks. Index touched an intraday high of 4,908.50 in late trade.
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The Indian rupee too bounced back quite smartly to 54.56 a dollar from record low of 54.89 a dollar, but still down 9 paise from previous close of 54.47 a dollar. Currency has fallen due to sliding euro and other Asian currencies due to Eurozone turmoil.
European markets were off day’s low at the time of closing of Indian equities; France’s CAC and Germany’s DAX were down 0.2% while Britain’s FTSE fell 0.9%. Asian markets were down 1-3% at close. Spike in German government bond yields to record lows, rising US dollar, downgrade Greece by Fitch and bank crisis in Spain dampened investors’ sentiment globally.
Back home, country’s largest lender State Bank of India rallied 5% after better than expected net profit of Rs 4,050 crore for the fourth quarter of FY12 as against Rs 21 crore a year ago, aided by higher interest income and lower provisioning for non-performing loans. Analysts on average had expected profit at Rs 3,580 crore. Net non-performing asset (NPA) ratio declined to 1.82% as against 2.22% in the October-December quarter while the gross NPA ratio fell from 4.61% to 4.44% during the same period.
Private sector lenders ICICI Bank and HDFC Bank gained 2.26% and 0.93%, respectively. Yes Bank, UCO Bank, IDBI Bank, DCB and Syndicate Bank too moved up 1.6-3%.
Technology stocks too turned positive towards the close; Infosys and Wipro rose over 0.5% while rival TCS was flat. In midcap space, Mahindra Satyam (post strong numbers in Q4) and KPIT Cummins jumped 6% (gained 56% in a month post Q4 numbers and strong outlook).
Index heavyweight and oil & gas producer Reliance Industries rose 0.5% while state-owned ONGC was up 1%.
FMCG majors ITC and HUL too rebounded quite nicely, rising nearly 2% and 0.6%, respectively.
Among metals and mining stocks, Sterlite Industries, Jindal Steel, Sesa Goa and SAIL gained around 2-4% whereas Tata Steel and Coal India fell 1-1.5%.
Auto stocks were beaten down badly as rising rupee may increase the cost of imports and royalty payment for these companies. Tata Motors, Bajaj Auto and Maruti Suzuki tanked 2.6-4%. Hero Motocorp was down 1% whereas M&M gained 1%.
In the second line shares, aviation stocks witnessed buying interest after CNBC-TV18 reported quoting top government sources that foreign direct investment in aviation sector is in final stages of approval. Kingfisher was up 2.8%, Jet Airways rallied 6.4% and SpiceJet shot up nearly 9%.
Future Capital and Pantaloon Retail surged 5-6% after 2.5 crore equity shares (38.6% equity) of Future Capital changed hands at Rs 129.58/share via block deal.
However, state-owned earthquake equipment manufacturer BEML tumbled 7.5% after the Karnataka police frozen company’s bank accounts.
Manappuram Finance was down nearly 4% ahead of fourth quarter numbers of FY12.
Declining shares outnumbered advancing by 1464 to 1232 on the BSE.
For the week; the 30-share BSE Sensex and 50-share NSE Nifty fell around 0.8%.