Key benchmark indices declined in the week ended Friday, 30 May 2014, on profit booking after
logging gains in prior three weeks. The Sensex logged decline in three out of five trading sessions in
the week just gone by.
In the week ended Friday, 30 May 2014, the 30‐share S&P BSE Sensex declined 476.06 points or
1.92% to 24,217.34. The 50‐unit CNX Nifty fell 137.15 points or 1.86% to 7,229.95.
The S&P BSE Mid‐Cap index fell 201.10 points or 2.32% to 8,467.22, underperforming the Sensex.
The S&P BSE Small‐Cap index declined 112.31 points or 1.23% to 9,015.73, outperforming the
Sensex.
PSU:
The BSE PSU index fell 6.50% for the week ended 30th May 2014 to close at 8055 levels. Some of the
losers in the index were BHEL, HPCL, SBI and ONGC which fell by 11.1%, 7.7%, 7.2% and 7.2%
respectively. BHEL’s net profit fell 43.02% to Rs 1844.59 crore on 21.42% fall in total income to Rs
15320.38 crore in Q4 March 2014 over Q4 March 2013. Shares of defence equipment
manufacturers rose on media reports of potential increase in foreign direct investment (FDI) limit in
the sector to 100% from current 26%. BEML rose by 10.1% in this week.
Consumer Durables:
The BSE CD index fell 6.34% to close at 7713 levels for the week ended 30th May 2014. Some of the
losers in the index were Bajaj Electricals, Titan and Videocon which fell by 17%, 7.9% and 4.5%
respectively. Bajaj Electricals reported a loss of Rs 10.65 crore for the quarter that ended March 31.
It had posted a net profit of Rs 63 lakh in the January‐March period of last fiscal
logging gains in prior three weeks. The Sensex logged decline in three out of five trading sessions in
the week just gone by.
In the week ended Friday, 30 May 2014, the 30‐share S&P BSE Sensex declined 476.06 points or
1.92% to 24,217.34. The 50‐unit CNX Nifty fell 137.15 points or 1.86% to 7,229.95.
The S&P BSE Mid‐Cap index fell 201.10 points or 2.32% to 8,467.22, underperforming the Sensex.
The S&P BSE Small‐Cap index declined 112.31 points or 1.23% to 9,015.73, outperforming the
Sensex.
PSU:
The BSE PSU index fell 6.50% for the week ended 30th May 2014 to close at 8055 levels. Some of the
losers in the index were BHEL, HPCL, SBI and ONGC which fell by 11.1%, 7.7%, 7.2% and 7.2%
respectively. BHEL’s net profit fell 43.02% to Rs 1844.59 crore on 21.42% fall in total income to Rs
15320.38 crore in Q4 March 2014 over Q4 March 2013. Shares of defence equipment
manufacturers rose on media reports of potential increase in foreign direct investment (FDI) limit in
the sector to 100% from current 26%. BEML rose by 10.1% in this week.
Consumer Durables:
The BSE CD index fell 6.34% to close at 7713 levels for the week ended 30th May 2014. Some of the
losers in the index were Bajaj Electricals, Titan and Videocon which fell by 17%, 7.9% and 4.5%
respectively. Bajaj Electricals reported a loss of Rs 10.65 crore for the quarter that ended March 31.
It had posted a net profit of Rs 63 lakh in the January‐March period of last fiscal
Oil & Gas:
The BSE Oil & Gas fell by 5.99% for the week ended 30th May 2014 to close at 10854 levels. Some of
the losers in the index were GAIL India, ONGC and Reliance which fell by 11.4%, 7.2% and 5.6%
respectively. GAIL disappointed street on every parameter with the fourth quarter net profit falling
42 percent sequentially to Rs 972 crore on lower revenue and weak operational performance.
Brokerage house Macquarie has a negative view on the stock with a target price of Rs 320 apiece
which is the lowest on the street while Deutsche Bank downgraded the stock to sell from hold with a
target price of Rs 340 per share. There was some news item regarding RIL faces $1.1billion hit on KG‐
D6 revenue which the company later clarified and said it will take appropriate actions, including legal
remedy at the appropriate time to protect its reputational and economic interests.
Power:
The BSE Power index fell by 5.28% for the week ended 30th May 2014 to close at 2167 levels. Some
of the losers in the index were BHEL, Siemens and Power Grid which fell by 11.1%, 9.8% and 6.8%
respectively. Siemens (the parent company) is going to cut nearly 12,000 jobs as it seeks to
restructure its business and halt a slide in profitability against its peers
Healthcare:
The BSE Healthcare index rose 2.41% for the week ended 30th May 2014 to close at 10315 levels.
Some of the gainers in the index were Aurobindo Pharma, Dr. Reddy, Piramal Enetrprises and Sun
Pharma which rose by 8.9%, 6.1%, 5.5% and 3.9% respectively. Aurobindo Pharma Ltd’s consolidated
net profit increased manifold at Rs 501 crore in the fourth quarter ended March 31, 2014 compared
to Rs 108 crore in the year‐ago period driven by growth in formulations sale. The total revenue of
the Hyderabad‐based company grew by 48.4 per cent at Rs 2,329 crore (Rs 1,570 cr). Sun Pharma’s
consolidated net profit jumped 57% to Rs 1587 crore on 32% increase in net sales/income from
operations to Rs 4044 crore in Q4 March 2014 over Q4 March 2013. Sun Pharma has issued guidance
of 13% to 15% growth in revenue for the year ending 31 March 2015 (FY 2015). The FY 2015
guidance takes into account the higher base of FY 2014 (year ended 31 March 2014) as well the risks
associated with increase in competition for some products. Wockhardt Ltd fell 17.4% in this week as
it posted a 78% drop in fourth‐quarter profit because of a sharp fall in sales in the US after the
country’s drug regulator banned imports of drugs from two of the company’s factories in India. Net
profit fell to Rs.75 crore in the March quarter from Rs.335 crore in the year earlier, the company
said. Sales fell 28% to Rs.1,060 crore from Rs.1,471 crore a year ago. Also The U.S. Food and Drug
Administration has expressed concerns over production processes at the U.S. unit of Wockhardt Ltd,
possibly adding to a spate of regulatory troubles facing the Indian generic drugmaker.
