Q1 Results: Bettering Expectations
The Q1FY13 report card of India Inc. was not as bad as it was expected to be. This adds to our optimism about the overall market scenario that is likely to emerge going forward. There has been some respite in the inflation figure for July 2012 that came in at 6.87 per cent, lower than that in the previous month.
However, there is some concern on the IIP front, where the number declined by 1.80 per cent for June 2012 over the corresponding month last year. Most fund managers are of the opinion that the second half of the current fiscal will be better and that the interest rates are likely to come down going forward.
On the broader market front, most of the sectoral indices have closed in the green except for three of them. The BSE Realty index, an underperformer in the preceding fortnight, went down by around two per cent, followed by the BSE Bankex (-0.99 per cent) and the BSE CD (-0.41 per cent). The BSE IT index emerged as a major outperformer, up by 4.78 per cent in the last fortnight, followed by the BSE Auto index (+3.43 per cent).
Index | 22-Aug-12 | 07-Aug-12 | % Change |
Sensex | 17885.26 | 17601.78 | 1.61 |
S&P CNX Nifty | 5421 | 5353.7 | 1.26 |
BSE - 100 Index | 5405.21 | 5329.76 | 1.42 |
BSE - 200 Index | 2185.52 | 2155.96 | 1.37 |
BSE - 500 Index | 6823.27 | 6735.73 | 1.3 |
NSE - CNX 100 | 5286.2 | 5225.2 | 1.17 |
NSE - CNX 500 | 4257.95 | 4212.65 | 1.08 |
Index | 22-Aug-12 | 07-Aug-12 | % Change |
BSE Mid-Cap | 6172.84 | 6126.27 | 0.76 |
BSE Small-Cap | 6649.68 | 6620.79 | 0.44 |
Money inflows remained strong, with FIIs pumping in a net Rs 4109 crore in equities during the fortnight. DIIs too ended in the green, having invested a net Rs 2610 crore in equities during the same period.
We remain positive on the markets and maintain our bullish stance. We suggest that investors accumulate stocks in a staggered manner.