Global cues shave one percent off markets (Weekly Review)

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Mumbai, Oct 11 (IANS) Dogged by weak global and domestic cues, the benchmark index of the Indian equities markets lost nearly a percent in the week trade which ended Oct 10.

The week which started post an extended weekend holiday on Tuesday saw the markets decline by 1.01 percent at Friday’s closing of 26,297.38 points.
“Markets ended the week on a weak note with benchmarks falling by more than 1%. The fall capped what was a very volatile week,” said Dipen Shah, head- private client group research, Kotak Securities.

“Continuing concerns over global growth impacted the global markets over the week and India was no exception. The lack of foreign flows resulted in subdued sentiments.”

According to Shah, going ahead, the quarterly results will dictate stock specific action.
“Infosys has started the season on a positive note. Markets will eagerly look forward to important reforms decisions from the Government eg. coal linkages, gas pricing, which will provide further impetus to the domestic investment and infrastructure related sectors,” Shah said.
“Positive news on these fronts will improve sentiments and allow markets to seek higher levels.”

The benchmark Sensex was down by 1.01 percent in the week ended Oct 10 from its previous weekly close on Oct 1. The index closed at 26,297.38 points, while it had ended trade at 26,567.99 points on Oct 1.
In the previous week the 30-scrip Sensitive Index had lost 0.21 percent in the week ended Oct 1 from its previous weekly close on Sep 26. The index closed at 26,567.99 points, while it had ended trade at 26,626.32 points on Sep 26.
The week under review saw selling pressure gaining momentum after economic data showed that Germany industrial output figures posted its worst fall for five and a half years.
This led the markets down by 296.02 points or 1.11 percent on Tuesday. On Wednesday the
the benchmark index closed the trade flat — down 25.18 points or 0.10 percent.
However, on back of positive global cues after the US Federal Reserve hinted that interest rates will stay near zero level for a “considerable time” the markets rebounded by around 400 points Thursday.

The cyclical stocks like banks, metals, infrastructure and capital goods performed much better Thursday after a week long battering at the market.
Due to negative global cues the foreign investors went on a selling spree by shedding-off shares worth $200.33 million.
For the week ended Oct 10, the FPIs massively sold stocks worth Rs.1,231.28 crore or $200.33 million, according to data with the National Securities Depository Limited (NSDL).
The FPIs only infused $49.65 million or Rs.306.42 crore in the week under review.
For the week ended Oct 1, the FPIs had massively sold stocks worth Rs.653.95 crore or $105.29 million.
The foreign institutional investors (FIIs) along with sub-accounts and qualified foreign investors have been clubbed together by market regulator Securities and Exchange Board of India (SEBI)to create a new investor category called FPIs.
However, the FPIs were net-buyers Friday. They bought in shares worth $2.29 million, or Rs.13.98 crore, on Oct 10.
The markets on Friday closed in the red down 339.90 points or 1.28 percent.
The 30-scrip Sensex, which opened at 26,551.74 points, closed at 26,297.38 points, down 339.90 points or 1.28 percent from the previous day’s close at 26,637.28 points.
The major Sensex gainers on Friday were: HDFC, up 2.68 percent at Rs.3,888.95; BHEL, up 0.91 percent at Rs.220.85; Hero MotoCorp, up 0.83 percent at Rs.2,842.20; Reliance Industries, up 0.59 percent at Rs.960.30; and Sun Pharma, up 0.54 percent at Rs.818.80.
The losers were: Tata Motors, down 5.31 percent at Rs.492.35; Hindalco Inds, down 4.79 percent at Rs.150.20; Sesa Sterlite, down 4.60 percent at Rs.249.75; Tata Steel, down 4.30 percent at Rs.448.20; and Mahindra and Mahindra, down 3.59 percent at Rs.1,318.40.
For the coming week ZyFin Research’s Chief Economist Debopam Chaudhuri said that the last minute release of Index of Industrial Production (IIP) numbers will not effect the markets as they open up on Monday.

“The IIP data is indeed disappointing and we sincerely hope for an upward revision to be announced in coming months. However, we dont see much of an impact on markets when they open on Monday and would be primarily guided by global cues.”
Industrial activity, measured in terms of the IIP, grew marginally by 0.4 percent in August over the same month of the previous year.

Last modified: October 11, 2014