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Weekly wrap: Power, capital goods shine as market gains 2%


The News International Team

Equity benchmarks climbed over 2 percent this week led by solid gains in power and capital goods shares.

The Sensex ended the week at 27887.90, up 646 points or 2.4 percent for the week. The Nifty logged a weekly gain of 195 points or 2.4 percent to close at 8395.45.

Brokers said the rally was driven by local operators, who were more active than usual as most foreign institutional investors (FIIs) were holidaying.

Sentiment has recovered after the hammering in the wake of the currency crisis in Russia and concerns over too steep a fall in crude prices.

There are signs that the local economy may be on the mend with the December HSBC PMI for manufacturing hit a two-year high.

However, most players feel the market has adequately priced in most of the good news.

The focus will now be on quarterly corporate earnings and reform measures, both of which have been below expectations so far.

The majority view is that the market is likely to consolidate near term and then could trend higher towards the Budget on expectations of some positive announcements.

Mid and small cap shares were in demand during the week, with the respective indices gaining 3.2 percent and 3.8 percent respectively.

Capital goods and consumer durable shares were the big gainers, with the respective sectoral indices climbing 4.3 percent each.

Next best were power and metails, with the respective sectoral indices gaining 4.1 percent and 3.8 percent.

Auto, pharma, realty and auto sectors gained 2-3 percent, which FMCG shares lagged the rest of the market.

JSPL was among the prominent gainers in the Nifty after the company proposed the demerger of one its arms under a restructuring plan.

Among big gainers in the Nifty, Bhel topped the list with a 9.4 percent rise. The stock gained 3 percent on Friday alone after the company disclosed that it had won a Rs 3801 crore order.

HDFC, UltraTech, Hindalco, Asian Paints and Sesa Sterlite gained between 5-7 percent, while Punjab National Bank, Mahindra & Mahindra and Bajaj Auto were the major laggards, shedding between 1-2.4 percent.

Star performers in the midcap space included Elder Pharma, Saksoft (+42 percent each) 42%, 8K Miles(+39 percent), Jindal Poly (+33 percent), Ujaas Energy (+34 percent), JBM Auto (+29 percent) and Gujarat Pipava (+28 percent)
Bank stocks are expected to be in the limelight on Monday depending on the statements coming the Gyan Sangam meeting in Pune over the weekend, where the Prime Minister and Finance Minister will be discussing measures to revitalize public sector banks. The RBI governors and top officials of the Finance Ministry will also be present at the meeting.

Also Read: See 20% CAGR over 2-3 years; like IT, banks: Akash Prakash


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