ShareKhan Newsletter Blog

 Market Commentary 

Mkts take a pause after 6 winning weeks; Nifty ends below 6,000

The Indian markets wrapped up the week ended May 24, 2012 in the red zone breaking the gaining trend of last 6 weeks. The Sensex ended 2.87% lower, while the Nifty fell 3.29% in the week.

Major Headlines for the week:

• ITC Q4 net profit up 19%; beats estimate 
• Tata Steel reports Q4 net profit down by 16%
• SBI slumps on disappointing Q4 nos; Net profit falls 19%
• Tech Mahindra jumps post Q4 results; beats estimate

Indian indices:

After witnessing rally in the previous six-weeks, the Indian markets reversed the gaining trend by ending the week ended May 24, 2012 in the red terrain.

The Indian indices remained volatile throughout the week, with the Sensex slipping 2.87% and Nifty down by 3.29%. Profit booking was witnessed throughout the week, which kept the sentiments bearish. Investors booked profits across the board on the back of domestic and global woes. Markets fell in four out of the five trading sessions of the week. The BSE Small-Cap index tumbled 3.33% and the BSE Mid-Cap index slumped 3.43%. Both these indices underperformed the Sensex.

The BSE Sensex declined 581.79 points to settle at 19704.33 while NSE Nifty dropped 203.75 points to settle at 5983.55 for the week ended May 24, 2013.

Weekly market trend from May 20 - May 24, 2013:

• On May 20, 2013, the Indian stock indices ended the first trading day of the week on negative note. Indian shares fell, after snapping a 4-day winning streak on Monday, retreating from 2-1/2-year highs as investors booked profits in rate-sensitive stocks such as ICICI Bank, while drugmakers were hit by worries about the country's new drug pricing policy. The Sensex closed at 20223.98, down by 62.14 points while the Nifty fell by 30.40 points to close at 6156.90. 

• On May 21, 2013, the markets opened on a flat note in the absence of any major global or domestic cues. Indian markets ended lower on the back of profit booking in rate-sensitive sectors and S&P BSE Sensex movers. The Sensex closed at 20111.61, down by 112.37 points while the Nifty fell by 42.80 points to close at 6114.10. 

• On May 22, 2013, the key benchmark indices closed in the red zone as the equities remained volatile led by selling pressure across the board. Benchmark share indices witnessed weak trading session led by disappointing Q4 numbers from construction major L&T. The markets remained rangebound for major part of the day seeking for direction and ended lower as investors preferred to book profits in sectors such as Capital Goods, Realty, Oil&Gas and Power. The Sensex closed at 20062.24, down by 49.37 points while the Nifty fell by 19.60 points to close at 6094.50. 

• On May 23, 2013, Benchmark indices closed in the red zone as the equities remained volatile led by selling pressure across the board. Markets witnessed weak trading session led by disappointing Q4 numbers from SBI. Indian markets were deeply cracked as the prospect of an end to the US stimulus programme and a weak China manufacturing survey sparked concerns that foreign investors will end their recent buying spree. The Sensex closed at 19674.33, down by 387.91 points while the Nifty fell by 127.45 points to close at 5967.05.

• On May 24, 2013, Indian Indices made smart recovery on the last trading day of the week recouping from previous session's loss with NSE Nifty closing little shy of key resistance level of 6000 on back of buying in rate-sensitive sectors such as CD, Metal, CG and Bankex stocks. Markets witnessed a choppy session thereby swinging between gains and losses on back of muted global cues and profit-booking in sectors. The S&P BSE Sensex wrapped trade at 19704.33, up by 30.00 points while the NSE Nifty rose 16.50 points to settle at 5983.55.

Global indices:
All the global markets closed the week on a negative note except Shanghai Composite which rose by 0.25%. Top Losers: Nikkei slipped 3.47%, Hang Seng declined 2.01% and Nasdaq fell 1.13%.

Sectoral and stock screening:
Majority of the sectors closed in red, barring BSE IT up by 0.14%. Losers - BSE Realty slipped by 11.54%, BSE CG dipped by 8% and BSE Power fell by 5.28%.

Looking at the 'A' group stocks, the top three gainers of the week were - ABB surged by 26.80%, Adani Power jumped by 17.75% and United Spirits gained by 11.54%. The top three losers of the week were - Wockhardt slipped by 32.76%, Ranbaxy Laboratories dipped by 15.78% and Future Retail fell by 14.41%.

FII/MF activity
The foreign institutional investors (FIIs) were the net buyers of the Indian stocks worth a net of Rs4212.10 crore during the week till May 22, 2013; the domestic investors were the net sellers of Indian stocks to the tune of Rs519.10 crore during the week till May 21, 2013.