rediff.com

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News 
Rediff.com  » Business » Markets end tad higher tracking gains on Nikkei

Markets end tad higher tracking gains on Nikkei

Last updated on: May 24, 2013 16:30 IST

BSEMarkets recovered on Friday to end four-day losing streak, tracking gains on the Nikkei, led by shares of private banks, rebound in L&T and Tata Steel.

Investors also preferred to buy after the recent slump in global shares was considered over-done amid worries over unexpected roll-back of US stimulus.Foreign institutional investors bought shares worth a net Rs 316.23 crore on Thursday as per provisional data from the stock exchanges.

In Asia, meanwhile, the sell-off continued with Nikkei shedding 3% from the day's high.

It finally ended with 1% gains at 14,612.

The Nikkei has soared nearly 70 per cent since November, off the back of aggressive fiscal and monetary policies to revive the economy, leaving the market susceptible to profit taking.

It fell more than 7 per cent on Thursday after Chinese data raised doubts about the health of the global economy, but it found support on Friday from investors looking for bargains.

BSE capital goods index gained 1.6% at 9,589 on the back of gains in Larsen & Toubro even as another major stocks, BHEL, dropped in trades.

L&T rose 2.7% at Rs 1,456 on bargain hunting after the stock fell 12.59% in the preceding four trading sessions to Rs 1,418.65 on Thursday.

BHEL slipped 1.5% at Rs 193 on worries over slow execution, pressure on margins and lack of fresh orders.

That apart, falling order book, high proportion (20-25 per cent) of slow moving orders, increase in working capital, especially receivables, are other key concerns, which continue to reflect in the financials of the company.

The consumer durables index added 1.8% at 7,433. Metal, realty, bankex and power indices added around 1% each.

However, the BSE healthcare index shed 1.3% at 8,729. IT index was also down around a per cent. Sun Pharma was down 3.6% at Rs 970 after its oversubsidiary Taro Pharmaceutical reported lower-than-expected operating profit margin for the fourth quarter ended March 31, 2013.

For the fourth quarter, net sales for the quarter increased 13.8% to $165.1 million from $145.1 million and net profit has inched up 4.2% to $49.2 million from $47.2 million.

From the metal space, Hindalco shed 1.7% at Rs 107. TCS, Cipla and GAIL India dipped 1-2% each.

Banking major, SBI dropped 1% at Rs 2,151.

The bank's standalone net profit for the quarter ended March 31, 2013, fell 18.5 per cent from a year earlier to Rs 3,299 crore.

The reasons given were higher loan loss provisions, increase in operating expenses and lower net interest income.

In 2012-13, consolidated profit after tax increased 16.8 per cent to Rs 17,916 crore.

On the other hand, Tata Steel reported profit for its Indian operations.

The stock had corrected yesterday in tandem with the sharp fall in the market.

Tata Steel Ltd reported a net loss of Rs 6,528.5 crore for the quarter ended March 31 against a profit of Rs 433.5 crore in the corresponding period last year.

The company recorded a goodwill write-down of Rs 8,356 crore in the quarter on account of its operations in Europe and Southeast Asia.

The stock was the top gainer among Sensex stocks, up 4.5% at Rs 313.

Tata Power added 3.7%, followed by ICICI Bank, Maruti Suzuki and Sterlite.

BSE market breadth was neutral.

Out of 2,434 shares traded, 1,189 shares advanced while 1,098 shares declined.

Sohini Sen in Mumbai
Source: