Weekly Wrap-Up - Eastern Financiers Ltd

Markets witnessed a week that ended almost flat with marginal loss of around three tenths of a percent after prior week's gains of around half a percentage point amid loads of episodes primarily on the global arena that led to a sharp plunge, and back home the mixed bag second quarter earnings by the corporates and the activity by Foreign investors persisted to pave the vogue for the indices. Foreign Investors sustained to pour in funds to the Indian economy.

Global markets witnessed the most crucial episode that was the US Presidential election which declared the sitting President Mr. Barak Obama as the 44th President for the next four years for the world's largest economy, defeating the Republican opponent Mitt Romney. However, moving ahead, investors are worried about the US fiscal cliff - a combination of major spending cuts and tax hikes that will automatically take effect early next year unless politicians reach a compromise.

The European commission curtailed the forecasts for the Euro economy for FY13 and even for Germany, Europe's largest economy to 0.8% from 1.7% which dampened the global sentiment. The ECB and the Bank of England kept their key interest rates unchanged at 0.75% and 0.5% respectively.

Second quarter Earnings performance by corporates kept the benchmarks choppy with assenting performance by HDFC Bank, BPCL and GlaxoSmithKline Pharmaceuticals among others on one hand, while Tata Steel, State bank of India, ONGC and Sun Pharmaceuticals staged a murky picture on the other. Tata Steel swung to net loss in the second quarter of FY13. The company reported net loss of Rs. 363.93 crores in Q2FY13 equated to net profit of Rs. 212.43 crores in Q2FY12. Revenue for the company parked at Rs. 33867.32 crores for the given quarter against Rs 32,507.45 crore last year. Bad loans of SBI clambered in the second quarter. BPCL reported a turnaround in its second quarter earnings. The company reported a net profit of Rs 5034.79 crore in Q2 September 2012 compared with a net loss of Rs 3229.27 crore in Q2 September 2011. Total income rose 34.15% to Rs 57344.65 crore in Q2FY13 over Q2FY12.

Foreign funds sustained to invest in the Indian markets this week to the tune of Rs. 1159.35 crores after prior week's inflow of Rs. 697.18 crores.

Source : Equity Bulls

Keywords