Monday started on an apprehensive note. The reason being that U.S. stocks tumbled on Friday (August 29) while the Asian markets had a weak start (September 1). The U.S. fall was due to PC major Dell's disappointing earnings as well as weakness in consumer spending. There was also anxiety over the impact of Hurricane Gustav on oil prices.
Fears were confirmed and the market ended flat on Monday. It was only in the last hour of the trading session that the Sensex and Nifty recovered led by buying in banking, oil & gas and FMCG stocks.
On Tuesday, the tables were turned on the bears. The overnight steep fall in oil prices due to the weakening of Hurricane Gustav coupled with relatively stable Asian markets and firm cues from the European markets helped the bulls reign. Finally the Sensex closed above 15,000 and Nifty above 4,500. The FIIs were big buyers on Tuesday.
The market was shut on Wednesday on account of Ganesh Chaturthi.
On Thursday the bulls put up a brave front but finally lost. The session started with a negative bias on the back of global weakness and profit taking in the realty, FMCG, oil & gas and metal stocks. After hitting an intra-day high of 14,994.15 in the mid-afternoon trades, the Sensex finally closed lower at 14,899. The Nifty too closed lower.
Shares of Austral Coke & Projects Ltd were listed on Thursday. The company's IPO was subscribed 1.65 times, mainly due to heavy subscription in the HNI portion. The issue price was Rs 196 per share. It started trading at Rs 207 and finally closed at Rs 225.
Friday started on a bad note. U.S. stocks plunged on Thursday, despite crude oil ending below $108/barrel. The European markets too did not fare too well on Thursday. On Friday, Asian markets were down when the Indian stock market opened for trading. The weak global sentiments provided ample strength to the bears and trading got off to a weak start. Major European markets, which open after the Indian market, also opened sharply lower. The fall in crude oil prices gave a boost to the PSU oil companies and aviation stocks Jet Airways and Deccan Aviation. Finally, the Sensex closed 415 points lower.