Sensex ends 199 points up; PSU banks underperform post Q1 nos

The 30-share BSE Sensex closed off day's high on Friday as gains trimmed to 199 points from 335 points in second half of trade. Poor asset quality performance by PSU banks in the quarter ended June 2012 dampened sentiment and that resulted fall in every public sector lender and State Bank of India too.

The BSE benchmark rose 199.37 points or 1.20% to close at 16,839.19 after hitting an intraday high of Rs 16,975.03. Meanwhile, the NSE benchmark, which could not able to hold the 5100 level, advanced 56.85 points or 1.13% to 5,099.85 after hitting a high of 5,149.95.

The market rallied nearly 2% in early trade after strong statement made by European Central Bank of India President Mario Draghi saying ECB is ready to do whatever it takes to preserve the euro. "And believe me, it will be enough," he quickly adds. That helped US and European markets rally quite sharply yesterday. Today Asian markets too closed higher; Hang Seng, Nikkei, Kospi and Taiwan Weighted gained 1.5%-2.6% while Shanghai and Straits Times were flat.

Draghi's statement seems very important ahead of European Central Bank's meet next week. Federal Open Market Committee's meeting too is also scheduled for next week.

Back home, the next week is very important for our market as well because the Reserve Bank of India will discuss monetary policy review for the first quarter of FY13, which is scheduled for July 31. Majority of experts expect no change in key policy rates and cash reserve ratio too as the inflation is still above the RBI's comfort level of 7%.

Country's largest lender ICICI Bank stood out smartly among the banking space by showing strong performance in the June quarter. Net profit of the bank rose by 36.26% year-on-year to Rs 1,815 crore led by drop in non-performing asset (NPA) and higher other income. Analysts on an average had a forecast of Rs 1,704 crore. The stock gained 2.35% while its rival HDFC Bank was up over 3%.

However, majority of PSU banks (Punjab National Bank, Bank of India, Union Bank, Central Bank of India and Dena Bank) reported their results for the same quarter and they showed poor performance in terms of asset quality. Shares of these banks fell 4%-8%. In results of which the the top lender State Bank of India too tanked nearly 4% (which will declare its results around August 10).

Cigarette major ITC bounced back with 2% gains. Tata group stocks, which beaten down badly in previous sessions, rebounded today - Tata Motors and Tata Steel gained 4% while TCS was up 2% and  Tata Power rose 1.2%.

Software services exporters Infosys and Wipro went up over 1%. Index heavyweight Reliance Industries moved up 1.4% and telecom operator Bharti Airtel climbed 2% to close above Rs 300.

Metals stocks like Sterlite Industries (after higher than expected numbers) and Hindalco Industries were up 3% each. State-owned power producer NTPC rose 1% after first quarter numbers.

However, power equipment manufacturer BHEL tumbled 2%. Two-wheeler majors Hero Motocorp and Bajaj Auto were down 1.6% and 0.6%, respectively.

For the week, the Sensex and Nifty dropped more than 2%.

The broader markets hit quite badly in second half of trade due to heavy sell-off in second line shares. The BSE Midcap and Smallcap indices were down nearly 1%.

Shares of Subex, Deccan Chronicle and Parsvnath Developers crashed 19%-20% each. Pipavav Defence was down 10.5%. Sugar stocks like Bajaj Hindusthan and Shree Renuka Sugars fell over 5%.

SpiceJet and Sun TV tanked 11% after Central Bureau of Investigation said Kalanithi Maran (who holds stake in both companies) got Rs 550 crore bribe in Aircel-Maxis deal.

MRPL managed to trim losses from 13% to 3.4% at close as the company posted a net loss of Rs 1,521 crore in the quarter ended June 2012 as against profit of Rs 203 crore in a year ago period. The company said the operating performance was hurt by refinery production in April. It also reported a forex loss of Rs 649 crore.

About two shares declined for every share advancing on the National Stock Exchange.

Indian equity benchmarks erased nearly half of gains in afternoon trade due to profit booking in State Bank of India and BHEL. L&T and ONGC too were under pressure while rest of the stocks trimmed somewhat gains.

The 30-share BSE Sensex rose 183.32 points 1.10% to 16,823.14 and the 50-share NSE Nifty gained 53.65 points or 1.06% at 5,096.65.

The fall in European markets too too have impacted Indian markets; Germany's DAX fell 0.9% while France's CAC and Britain's FTSE declined 0.3% each on profit booking. These markets had rallied quite sharply yesterday after a speech by European Central Bank President Mario Draghi. He said, ''ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough.''

Country's largest lender State Bank of India plunged more than 2% whereas its rival ICICI Bank cut half of the losses to trade with gain of 2%, even after higher than expected numbers in the first quarter of FY13. Net profit of the ICICI rose by 36.26% year-on-year to Rs 1,815 crore led by drop in non-performing asset (NPA) while analysts on an average had expected at Rs 1,704 crore.

Another private sector lender HDFC Bank trimmed gains to 2.7% from 3.5% while housing finance company HDFC gained just 0.4%.

Two-wheeler major Hero Motocorp tanked 2% whereas top commercial vehicle maker Tata Motors surged nearly 3% (which was up 5% in early trade).

State-owned power equipment manufacturer BHEL was down 1.7% and engineering and construction major Larsen & Toubro declined 0.2%.

The broader markets, which gained more than 1% in early trade, caught in bear grip. Declining shares outnumbered advancing by 814 to 582 on the National Stock Exchange.

The BSE Sensex trimmed gains to 250 points from more than 300 points due to fall in State Bank of India. Country's largest private sector lender ICICI Bank too trimmed gains to 2.5% from 4%, even after higher than expected numbers in the quarter ended June 2012.

Net profit rose by 36.26% year-on-year to Rs 1,815 crore led by drop in non-performing asset (NPA) while analysts on an average had expected at Rs 1,704 crore.

Its rival HDFC Bank extended gains to 3.5% from 3%, but top lender State Bank of India erased gains, falling 1.5%.

The BSE benchmark rallied 256.51 points to 16,896.33 and the NSE benchmark surged 80.80 points to 5,123.80. The broader markets too pared gains; the BSE Midcap and Smallcap indices were up 0.7%.

Cigarette major ITC and private oil & gas producer Reliance Industries gained 1.86% each.

Top commercial vehicle maker Tata Motors retained its top position in the buying list with gain of 4.5%. Metals stocks too were on buyers' radar; Tata Steel and Sterlite Industries shot up 4% each while Hindalco went up 3.5% and Jindal Steel was up 2%.

Shares of Larsen & Toubro, Infosys, TCS and Bharti Airtel moved up 1-2% while two-wheeler major Hero Motocorp fell over 1%.

Healthcare stocks like Dr Reddy's Labs and Cipla were marginally under pressure on profit booking.

On the global front, European markets opened higher with mild gains while Asian markets remained strong in late trade. Hang Seng, Kospi and Taiwan Weighted rallied 2-2.6%. Nikkei was up 1.5% while Shanghai was flat.

Indian equity benchmarks extended gains with the BSE Sensex rising 300 points and Nifty 100 points led by broadbased buying. Buying was seen in most beaten down sectors like metals and banks.

The 30-share BSE Sensex shot up 304 points to 16,944 and the 50-share NSE Nifty gained 100 points at 5,143 while the broader markets were up over 1%.

But Vibhav Kapoor of IL&FS feels the upside is capped at 5180-5200 on the Nifty in the near-term. According to him, investors will be quite disappointed if the government doesn't act in a month or so. Moreover, Kapoor says the impact of the weak monsoon has not been fully factored in yet.

Across the board buying helped the market bounce back. Metal and Bankex were up 3% each. Realty, Power, Capital Goods, Oil & Gas, FMCG and Auto rose 1.5-2%.

Country's largest private sector lender ICICI Bank spiked 4% ahead of first quarter numbers. Analysts on an average expect the net profit to grow by 30% year-on-year to Rs 1,730 crore in the quarter. Its rivals State Bank of India and HDFC Bank were up 2% and 3%, respectively.

Top commercial vehicle maker Tata Motors, and metals stocks like Tata Steel, Sterlite Industries and Hindalco topped the buying list with gain of 4%-5%.

Housing finance company HDFC and state-owned oil & gas producer ONGC went up 1% each. Telecom operator Bharti Airtel rallied 3%.

Cigareette major ITC, oil & gas producer Reliance Industries and engineering & construction major Larsen & Toubro climbed 1.7% each.

However, two-wheeler major Hero Motocorp was the only loser among largecaps with loss of 1.5%.

Indian shares retained their early gains, though there was somewhat profit booking. Asian peers remained strong with markets like Hang Seng, Kospi and Taiwan Weighted rising 2% while Nikkei gained 1%.

Banks stocks led the rally as the Bank Nifty, which lost 1.8% yesterday, rallied over 2% to 10,300. Country's largest private sector lender ICICI Bank gained more than 3% ahead of first quarter numbers that scheduled for today while its rivals State Bank of India and HDFC Bank were up 1.4% and 1.7%, respectively.

The BSE benchmark rose 217 points to 16,856.92 and the NSE benchmark moved up 72 points to 5,114.80.

Cigarette major ITC, which declined 2% yesterday, went up 1.4%. Top commercial vehicle maker Tata Motors topped the buying list, rising 4.25% while yesterday the same stock was the top loser in late trade.

Among sectors, the BSE Metal Index gained the most that rose more than 2%. Tata Steel shot up 3.5% while Sterlite Industries and Hindalco were up 3% each.

Country's largest software services exporters TCS, Infosys and Wipro moved up just 0.5%-1.3%. Index heavyweights Reliance Industries and Larsen & Toubro climbed 1-1.4%.

Telecom operator Bharti Airtel and FMCG major HUL gained 1.7% and 1%, respectively.

However, two-wheeler major Hero Motocorp topped the selling list with loss of 1.4% while its rival Bajaj Auto was down 0.6%.

The broader markets, which had fallen more compared to benchmarks yesterday, too gained 1%. About three shares advanced for every share declining on the National Stock Exchange.

The BSE Sensex and NSE Nifty started off Friday's trade with 1.6% gap up following rally across the globe led by ECB President Mario Draghi's comments on Eurozone.

The BSE benchmark shot up 255.58 points or 1.54% to 16,895.40 and the NSE benchmark was up 81.75 points or 1.62% to 5,124.75.

Among Asian markets, Hang Seng, Kospi and Taiwan Weighted rallied 2% each. Nikkei gained 1% while Shanghai and Straits Times were flat.

The US markets yesterday closed with 1.7% gains and even European markets surged in the second half of trade after European Central Bank (ECB) President Mario Draghi said, "ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough."

Back home, country's largest private sector lender ICICI Bank surged 4% ahead of Q1 earnings today. Analysts on an average expect the net profit to grow by 30% YoY to Rs 1,730 crore.

Tata Motors bounced back with 3% gains as the stock had got butchered quite badly in previous sessions.

Sterlite Industries rose 4% after better than expected numbers in the quarter ended June 2012. ACC too gained 3% on strong results yesterday after market hours.

Among others, Tata Steel, Hindalco Industries, Sesa Goa, Bharti Airtel, State Bank of India, PNB, Bank of Baroda, Axis Bank, State Bank of India, Reliance Infrastructure, JP Associates, M&M, Infosys and Wipro gained more than 1.5%.

HCL Tech, ITC and HUL were up around 0.5-1%.

However, Sun Pharma was the only loser, falling 0.26%.

The CNX Midcap Index went up 79 points to 7,144 as about four shares advanced for every share declining on the National Stock Exchange.

In the second line shares, SpiceJet went down 11% and Sun TV tanked 20% after Central Bureau of Investigation said Kalanithi Maran (who holds stake in both companies) got Rs 550 crore bribe in Aircel-Maxis deal.

Parsvnath Developers crashed 20% in early trade, but immediately trimmed losses to 5%.

TVS Motor fell 1% as analysts feel the company will disappoint on every count in first quarter results that will be announced today.

MTNL was up 2.7%. However, Tulip Telecom, Pipavav Defence and Monnet Ispat gained 5-9%.

JK Lakshmi Cement surged 4% and Bata was up 1% after good numbers in the quarter ended June 2012.

SKS Microfinance rose 5% as Deutsche Securities bought 9.15% stake in the company via QIP.

Sintex, GMR Infra, Kingfisher, HCC, Shree Renuka and Bajaj Hindusthan were up 2-4%.

Wockhardt moved up 2% as the company sold its nutrition business to Dannone for Rs 1280 crore.

Amar Remedies, Sujana Towers and Pradip Overseas plunged 9-20%.