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Monthly Market: Cold finish to blustering start

Saturday, January 30, 2010

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January 30, 2010

 Market Commentary 

Cold finish to blustering start 

The month that saw the Sensex breach its 52-week high in the very start, ends 6% lower on worries on global economic front and disappointing Q3 earnings of some India Inc. heavyweights.

January that made a very promising start with the Sensex touching its 52-week high at 17790 in the very opening week of the month finished poor with the index breaching the crucial 16000 on the last day, though it closed above it. Disappointing Q3 earnings of heavyweights coupled with US President Barack Obama's decision to put restrictions on banks and robust selling in the interest rate sensitive stocks ahead of the Reserve Bank of India (RBI) third quarter review of the monetary policy 2009-10 dented the sentiments that led the Sensex to end the month 1107 points (6.34%) lower at 16358. Nifty also breached the significant level of 5000 and closed the month 319 points (or 6.14%) down at 4882.
Consumer durables and public sector unit bourses drew interest with the BSE CD and BSE PSU up by 1.44% and 0.10% for the month. All the remaining Indices ended in red with the BSE Realty losing the most, 9.31% during the month followed by the BSE Metal that slid 8.05%. The remaining indices were down between 2.87% to 6%.

The market may remain volatile ahead of the Union Budget 2010-11 slated in the last week of February (February 26, 2010). We do not see much movement in the market till the announcement of the Budget, as investors remain cautious.

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