Small-cap, mid-cap scrips outshines Sensex

Mumbai, Sep 15: The Bombay Stock Exchange (BSE) Sensex rose 13.38 points or 0.09 per cent to settle at 15,603.80 in the week ended September 14, yesterday.

''The market ended flat in most of the trading sessions last week. The market absorbed global as well as domestic shocks after trading had begun in the backdrop of a sell-off in US stocks on September 7, following data showing US firms cut 4,000 jobs last month. The market also largely shrugged off weak industrial production data for July and a renewed threat from the left parties over nuclear deal. The benchmark index rose in 2 out of the 5 trading sessions in the week,'' market analysts said.

Among the broader markets, the National Stock Exchange (NSE) S&P CNX Nifty rose 8.5 points or 0.18 per cent to 4,518 in the week.

Small-cap and mid-cap shares were in demand. BSE Small-Cap index rose 139.24 points or 1.65 per cent to 8,572.76 in the week, while BSE Mid-Cap index rose 43.35 points or 0.66 per cent or to 6,897 in the week, BSE data shows.

The other sectoral indices, like the BSE Auto index and BSE IT index edged lower, while, the BSE Bankex, BSE Capital Goods index, BSE Realty index edged higher.

Meanwhile, the annual inflation growth declined to a two-year low of 3.52 per cent in the week ended September 1 from 3.79 per cent in the week ended August 25, due to falling prices of pulses, vegetables, condiments and spices. Wholesale price index (WPI) stood at 5.34 per cent in the corresponding week a year ago.

The BSE 30-share Sensex rose 6.41 points or 0.04 per cent at 15,596.83 on Monday. The market had opened on a weak note following a sell-off in US stocks on Friday, September 7, after data showed US firms cut 4,000 jobs last month, the first such decline since August 2003. It recovered all the lost ground to post marginal gains, on strong buying in index pivotals, especially Reliance Industries.

However, information technology (IT) pivotals stayed weak, on fears of US economy heading towards recession. The market breadth was strong on BSE in contrast to initial weakness.

On Tuesday, the barometer index shed 54.06 points or 0.35 per cent at 15,542.77. The market saw trend reversal from initial firmness to end in the red. The sentiment turned nervous ahead of a key meeting of the government with left parties on the Indo-US nuclear deal. The market had opened on an upbeat note tracking steady global markets. A bout of volatility was witnessed in the second half of the day's trading. Domestic market underperformed its global peers.

The Sensitive Index declined 37.41 points or 0.24 per cent at 15,505.36 on Wednesday. The market saw trend reversal from initial strength to end in the red. The market moved between positive and negative zone throughout the day. It first slipped in negative zone in mid-afternoon trade as data showing slower growth in industrial production raised worries about economic slowdown from a robust growth in the year ended March 2007.

Then the Sensex gained 109.08 points or 0.7 per cent to 15,614.44 on Thursday. The market broke its two-day loosing streak to post good gains, led by steady buying support for index pivotals.

Turnover was high. Asian markets were mixed while European markets were trading lower.

Finally on Friday, the BSE Sensex declined 10.64 points or 0.07 per cent to 15,603.80. The market saw a sharp trend reversal as global credit worries resurfaced after a British mortgage lender issued profit warning, dragging all the European bourses which opened after Indian market, lower. The market had opened on an upbeat note tracking rally in US markets overnight.

Wipro, Satyam Computers, Infosys Technologies, TCS and NTPC were the week's laggards, while Tata Steel and Reliance Industries (RIL), Reliance Energy (REL), HDFC, SBI and Bajaj Auto were the other major gainers from the Sensex pack.

The growth in Index of Industrial Production (IIP) dipped 7.1 per cent in July, this year compared to 13.17 per cent in July, last year due to a decline in growth on account of inventory problems and floods.

It may be recollected here that Prakash Karat, general secretary of the Communist Party of India-Marxist (CPI-M), in a public meeting in Vishakapatnam on Saturday (Sep 8) strongly criticised the nuke deal as the United Progressive Alliance (UPA) government had not mentioned it in the Common Minimum Programme (CMP). Hence, the UPA has to choose between the CMP or its allegiance to the US, he had threatened. He, renewed the threat by making a strong statement on Thursday, (Sep 13), on ending support to the UPA coalition if it operationalised the nuclear deal with the United States.

The NSE has decided to add realty major Unitech in S&P CNX Nifty in place of IPCL. The change will take effect next month, from October 5. Due to the proposed merger of IPCL in Reliance Industries, trading in IPCL will get suspended and therefore the change in the index composition.

UNI