Markets expected to rise in pre-budget season

It was a volatile week for markets on account of major events like Delhi election results , key corporate results, macro-economic data like Index of Industrial production (IIP) numbers, CPI and global factors like the Ukraine-Russia conflict along with jitters from Greece.

For the week ended February 13, the index jumped 377 points, or 1.3%, to 29,094.93 against 28,717.91 on February 6. During the week, it touched intra-day low of 28,044.49 on February 10. In the previous two weeks, the index plunged 1.59% and 0.3%.

Among sector indices, the BSE Healthcare index gained the most-4.2%-to 15,857.69 on February 13 against 15,219.81 on February 6.

It was followed by BSE Power index (3.6%), BSE Bankex (3%), BSE Auto index (2.8%) and BSE Metal index (2%). However, BSE Realty and BSE Oil & Gas index declined 1.4% and 0.5% to 1,721 and 10,039.95, respectively, during the week.

Vinod Nair, head, fundamental research, Geojit BNP Paribas, says, "A set of healthy numbers at the end of the result season have positively influenced the momentum. CPI below the RBI target and experts suggesting further correction in this trajectory can be counted as positives for the market."

Dipen Shah, head, private client group research, Kotak Securities, says, "Supporting global markets, ceasefire between Russia and Ukraine and expectations of a pro-growth budget, helped markets overcome the results of the Delhi assembly elections. The better-than-expected numbers from State Bank of India and Mahindra & Mahindra also helped sentiments along with lower-than-expected CPI numbers. CPI numbers based on new series came in at 5.11% for January 2015, a clear 300 basis points lower than RBI 8% inflation target.

According to NSDL website, foreign institutional investors remained net seller in the equity market, having sold shares worth Rs 2,186.68 crore during the week.

For the quarter ended December 2014, State Bank of India registered a net profit of Rs 2,910.06 crore, up 30.24% against Rs 2,234.34 crore reported in the corresponding quarter last year.

In the BSE 500 index, Bajaj Corporation, Jubilant FoodWorks, Honeywell Automation, UPL Ltd, Supreme Industries, Mindtree, Century Plyboards, Cera Sanitaryware, Godrej Consumer Products, Hexaware Technologies, Emami, Siemens, Bharat Forge and ACC hit new all-time high during the week.

During the week, China's Shanghai Stock Exchange Composite Index, Japan's Nikkei 225, Germany's CAC and US Dow Jones index gained around 3%, 2%, 0.75% and 0.83%,respectively, till February 12.

Commenting on the movement of equity market, Gaurav Jain, director, Hem Securities, says, "We expect market to continue its rally in the week ahead."

Nair of Geojit BNP Paribas, says, "The market is moving ahead on positive thought on budget expectation. Apart from the nitty-gritty, government should target to push to improve investment cycle, PSU banks funding and impetus to "Make in India". All these factors will help market to develop positive momentum towards Infrastructure, PSU banks and manufacturing sectors."