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Despite a correction of 220 points on Friday, the BSE Sensex managed to maintain positive returns for the third week in a row. The Sensex gained 0.5 per cent for the week ended July 8 2011, while the NSE Nifty posted a gain of 0.6 per cent. Food inflation too moderated to a seven-week low.
Small and midcap stocks, which have been lagging the large-caps for some time now, have revived over the last few days. The BSE Small and BSE Midcap indices gained 1.8 per cent and 1.3 per cent respectively. Among the sectoral indices, BSE Realty and BSE Auto, the interest sensitive indices were among the top gainers, up 7.1 and 3.6 per cent respectively. The BSE Metal index lost 1.3 per cent.
SKS Microfinance's stock gained a massive 44 per cent in a week as clarity emerged on who will be regulating the microfinance industry (MFI). The MFI Bill, which is expected to be approved by Parliament, will have the RBI as the regulator. The stock of SE Investments , a small-cap MFI, posted a 17 per cent gain.
The stock of Reliance Infrastructure ended up the best performer in the Sensex with a gain of 8 per cent on reports that the company may sell stake in its transmission projects. The company later denied the rumours.
The stocks of Mahindra and Mahindra Finance and Shriram Transport Finance gained 8 and 3 per cent respectively after the RBI clarified that securitisation by NBFCs will be accepted as part of banks' priority sector lending requirements.
The stock of Tata Motors gained 6 per cent on the back of its being upgraded into Morgan Stanley's Focus list.
Coal India shares lost 6 per cent at the end of the week, thanks to an 8 per cent loss on Friday as Empowered Group of Ministers approved the MMDR Bill which proposes a 26 per cent profit sharing by Coal India for the benefit of affected locals. For other mining companies, the Bill proposes 100 per cent of the royalty to be paid. Sesa Goa, MOIL, Hindustan Zinc and NMDC were among the other stocks to have been beaten down on Friday.
The stock of Sun Network declined 10 per cent on back of Dayanidhi Maran's resignation from the Union Cabinet. The arrest of Hansraj Saxena, its Chief Operating Officer, also added to the stock's woes.
The stock of Kingfisher Airlines lost 4 per cent at the close of the week following news that the company's promoters pledged their entire stake.
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