Friday, May 11, 2012
The market may remain rangebound although stock-specific activity could be witnessed based on Q4 earnings. On the macro front, the government will announce inflation data for the month of April 2012 on Monday, 14 May 2012. The annual rate of inflation based on the Wholesale Price Index (WPI) is seen easing to 6.6% in April 2012, as per the median estimate of a poll of economists carried out by Capital Market. The annual rate of inflation, based on monthly WPI, stood at 6.89% (provisional) for the month of March 2012. Investors are closely watching India Inc's Q4 March 2012 and year ending March 2012 (FY 2012) earnings. Focus is on the guidance provided by the managements for the year ending March 2013 (FY 2013) to gauge the earnings outlook.
The Indian markets ended lower for the third straight week. The Sensex was down 3.19% and the Nifty fell 5.07% for the week. Major headlines of the week: IIP for March at -3.5% vs 4.1% in Feb Exports grow 3.23% at $24.5bn; trade deficit widens to $13.4bn April car sales up 3.4% y-o-y Andhra Bank Q4 net profit up by 8% Central Bank hits monthly low after poor FY12 nos Kotak Bank FY12 cons net profit up 17%
Jubilant FoodWorks, Muthoot Finance, Jaiprakash Associates and Bajaj Auto are among the other gainers. Non-banking financial services company Manappuram Finance spurted 14.39% to Rs 23.05 on bargain hunting after the stock slumped 33.50% in the preceding eight sessions to Rs 20.15 on 10 May 2012 from a recent high of Rs 30.30 on 28 April 2012. The stock topped the gainers in the BSE's 'A' group. The company will announce its year ended March 2012 results on 18 May 2012. Food service company Jubilant FoodWorks jumped 7.66% to Rs 1,131.45. The stock was second biggest gainer in 'A' group.
Key benchmark indices slumped as macroeconomic worries and weak global stocks hurt investor sentiment. The 50-unit S&P CNX Nifty fell below the psychological 5,000 mark. The market fell in four out of five trading sessions in the week ended Friday, 11 May 2012. The latest domestic data showed industrial production contracted 3.5% from a year earlier in March as manufacturing output shrank, deepening worries of a slowdown in the economy. The last time industrial output contracted was in October 2011, when production fell 5%. Manufacturing output, which has a 75.5% weight in the index of industrial production, contracted 4.4% from a year earlier in March. It had risen 3.9% on year in February. Capital goods output shrank 21.3%. However, electricity production increased 2.7% from a year earlier in March. For the year ended March 31, industrial output grew a muted 2.8%, against an 8.2% increase in the previous year, government data showed.