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Weekly-market: Markets shut week with modest gains
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Friday, October 22, 2010 |
| | | Market Commentary | | | Markets shut week with modest gains | | The domestic markets snap two-week losing streak and end flat with a positive bias | |
 Major news for the week:
- Food inflation eases to 15.53%
- Larsen & Toubro Q2 net profit jumps 31% yoy
- Tata Consultancy Services hits all-time high on strong Q2 results
- Cairn-Vedanta deal seeks our approval: ONGC
- India's April-September direct tax receipts up 19%
Indian markets ended the week marginally higher breaking a two-week losing streak. The markets remained volatile throughout the week. The biggest buzz of the week was the India's largest initial public offering of Coal India as it attracted huge attention of foreign institutional investors (FIIs). During the week, China surprised the investors by raising its lending and deposit rates, prompting concern that the global economic recovery may slow. At back home, easing of inflation provided much needed support to the domestic markets. India's food inflation eased to 15.53% for the week ended October 09, 2010 as against 16.37% seen in the previous week.
Two of the India?s leading software developers posted contrasting Q2 results as Tata Consultancy Services posted robust results during the week, while Wipro declared its Q2 results below Street?s expectation.
 During the week, the Sensex and the Nifty had hit one-month low and swung 529 and 160 points respectively. Wrapping the week, the Sensex shut marginally higher by 41 points or 0.20%, at 20166 and the Nifty closed higher by mere three points or 0.06% at 6066.
On the global front, the European markets outperformed the other world markets, as FTSE 100, Dax 100 and CAC40 surged over 1% each. While Hang Seng index lost the most by 1.01% in this week. The Sensex and China?s Shanghai Composite ended the week flat.  Among the 13 sector indices, eight ended the week in the green while five in the red. BSE Health Care (HC) was the top performer, up by 2.85% followed by BSE Oil & Gas that surged by 2.69% and BSE Capital Goods (CG) rose by 1.09%. BSE Metal was the major loser, down by 2.69%, followed by BSE Realty that declined by 2.18% and BSE Consumer Durables (CD) fell by 0.87%.
| | | In 'A' group stocks, Pipavav Shipyard was the star stock of the week, up by 20.86%, followed by Central Bank of India that was up by 15.82% and Indiabulls Financial Services advanced by 14.80%. In the losers' list, Sesa Goa was the top loser, down by 8% after posting weak Q2 results, followed by Mahindra & Mahindra Financial Services that fell by 7.69% and Apollo Tyres slipped by 6.62%.
The FIIs continued there buying activity in this week. FIIs bought Indian shares worth a net of Rs3,598.20 crore as compared to net buy of Rs8,613.60 crore seen in the previous week, almost half of what was seen in the last week. The local investors sold the Indian stocks worth a net of Rs859.20 crore as against net sell of Rs1,348.50 crore seen in the previous week.
In the upcoming week, quarterly results will continue to flow and set the tone for the domestic markets in the near-term. | | TOP MOVERS (GROUP A) |  | | | | | | | | Pipavav Shipyard | 92.70 | 20.86 | | | Central Bank | 228.10 | 15.82 | | | Indiabulls Financial Ser | 210.95 | 14.80 | | | | | | | M&M Financial | 654.40 | -7.69 | | | | | | | |
| FII/MF ACTIVITIES | | | | | | | Gross purchase | 17,150 | 1,539 | | | | | Net investment | 3,598 | -859 | | | | | | | | | *As on October 20, 2010 | | | | | | The stock specific action will be seen in Dr Reddy?s Laboratories, Hindustan Unilever, Sterlite Industries, NTPC, Oil & Natural Gas Corporation, Steel Authority of India, Cairn India, Punjab National Bank, ITC, ICICI Bank, Mahindra & Mahindra, Bharat Heavy Electricals, Maruti Suzuki and Suzlon Energy, as the companies will declare their Q2 results in the next week. The developments across the globe and foreign fund flows will also play a significant role in deciding the future path of the markets.
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posted by Anonymous @ 10:44 AM  |
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