HDFC, HCL Tech earnings fail to keep Sensex up

Mumbai: Positive cues from European markets failed to cheer Indian equities, which ended almost where they started trade from. The 30-share BSE index provisionally ended up 0.2 per cent at 17,392.39 points, while the 50-share NSE index rose 0.19 per cent to 5,300 points.

The mood was dampened by the Indian consumer inflation, which rose 9.47 per cent in the year to March, faster than the previous month's reading of 8.83 per cent, government data showed on Wednesday.

Auto stocks were on buyer's radar on Wednesday on hopes of slash in car loans rate to boost domestic auto sales. Realty and banks ended in red.

CLSA cuts Sensex target

CLSA cut its target for the BSE Sensex to 19,000 from 20,000, citing risks such as the widening current account and fiscal deficits, as well as the uncertainty over foreign taxation.

Monsoon and Impact on Economy

India's monsoon rains are likely to be within long-term averages in 2012, the weather office head said on Monday, reassuring farmers ahead of next week's official forecast from New Delhi.

The monsoon rains are vital for farm output and economic growth in India, the world's second-biggest producer of rice, wheat, sugar and cotton. Agriculture accounts for about 15 percent of India's nearly $2 trillion economy, Asia's third biggest.

If monsoon rains lift farm output, that can boost domestic demand as it raises incomes of rural people, who make up about two-thirds of India's population of 1.2 billion. The consequent higher demand for goods and services can boost economic growth.

Results Corner

IT major HCL Tech and private bank heavyweight HDFC Bank beat street expectations. HCL Tech surprised the street with growth in dollar revenue terms while HDFC Bank reported 30 per cent jump in revenues on back of robust loan growth.

Currency Check

The rally in the rupee is starting to run out of gas. The knee jerk gains after the Reserve Bank of India cut interest rates by a bigger-than-expected 50 basis points is coming undone as traders bet on a much more cautious central bank in the months ahead.