Post Session- SBI earnings boost powers Sensex Analysis for May 18, 2012

Erasing earlier losses, the key domestic benchmarks notched up a strong comeback in noon trade to end higher today as a rebound in the rupee from record low levels and robust earnings numbers of banking major SBI lifted bourses. However, weak global cues checked the gains in the domestic bourses.

SBI soared 5.08 per cent to close at Rs 1,942 at the BSE after the country"s largest public sector bank raked in a net profit of Rs 4,050 crore in the fourth quarter of Fiscal 2012 helped by higher interest income and low provisioning for non-performing assets.

BSE SENSEX closed at 16,152.75, up by 82.27 points or by 0.51per cent and the NSE Nifty ended at 4,891.45, up by 21.25 points or by 0.44 per cent.

The BSE Sensex touched intraday high of 16,206.35 and intraday low of 15,809.71 The NSE Nifty touched intraday high of 4,908.5 and intraday low of 4,788.95.

Meanwhile, the BSE MIDCAP closed at 5,864.72, down by 15.85 points or by 0.27 per cent, while the BSE SMLCAP ended at 6,255.42, down by 14.94 points or by 0.24 per cent.

After witnessing a gap down opening amid weak global cues, the key domestic benchmarks extended decline as the rupee hit a fresh low against the greenback, while weak Asian cues continued to drag down domestic sentiment. The key domestic benchmarks slumped to the day"s low but recovered smartly in the last few hours led by buying in Banks,FMCG and PSU stocks and an earnings boost provided by banking giant SBI.

On the Sectoral front, the Banking and FMCG gained 1.75 per cent and 1.14 per cent, respectively.

Out of the 30 Sensex stocks, there were 19 advances and 11 declines. The Market breadth, indicating the overall health of the market, was weak. On BSE out of total shares traded 3541, shares advanced were 1281 while 1501 shares declined and 759 were unchanged.

The top gainers of the BSE Sensex pack were State Bank of India (Rs. 1942.00,+5.08%), Sterlite Industries (India) Ltd. (Rs. 100.95,+2.38%), ICICI Bank Ltd. (Rs. 805.05,+2.26%), NTPC Ltd. (Rs. 145.25,+2.22%), GAIL (India) Ltd. (Rs. 317.45,+2.12%), among others.

Asian markets fell on Friday amid concerns that Europe"s debt turmoil is deepening after Moody"s Investors" Services cut the ratings of 16 Spanish banks, citing a recession and mounting loan losses, while Fitch lowered the rating of the debt saddled Greek economy. Shanghai Composite closed down 1.44 per cent, Hang Seng ended down 1.30 per cent and Nikkei 225 shed 2.99 per cent, respectively.

Among the European bourses, CAC 40 was down 0.01 per cent, DAX was down 0.23 per cent and FTSE 100 was trading lower by 0.75 per cent at 16:30 PM IST.