A disappointing week | Value Research The market fell consistently the entire week except for Tuesday. The blame seems to rest with the global scenario. Even good news on the domestic inflation front did not work any magic.
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A disappointing week

The market fell consistently the entire week except for Tuesday. The blame seems to rest with the global scenario. Even good news on the domestic inflation front did not work any magic.

Those who wondered if the Sensex would scale a new high this week must be a disappointed lot. No doubt the Sensex has been struggling to do so for past several sessions in the earlier week, this week it opted for a bumpy ride. The market was down on Monday, but up on Tuesday along with every sectoral index except FMCG. After that, the slide was consistent for the rest of the week. Good news on the inflation front during the week failed to enthuse the markets.

But by and large, it could be blamed on the global markets. On Monday, China's benchmark stock index CSI 30 had a record fall of almost 293 points, a 16 per cent drop from its May 29 peak. US Federal Reserve chief Ben Bernanke commented on how prices are rising too quickly. The European Central Bank opted for a rate hike. So it was interest rate concerns, soaring oil prices, a correction in Shanghai and bearish bond market predictions that dampened international markets. Though the Monday China stock decline did not have any repercussions in other Asian markets, Asian stocks fell on Wednesday.

FIIs began on a good note and were net buyers but changed their tune by Wednesday. For the data available for mutual funds for four days (Mon - Thu), they were net sellers except on Tuesday.

Tech stocks ended the week on a good note. They started off by being on the receiving end as the rupee strengthened against the dollar. But as the week progressed and the dollar strengthened, they picked up. The BSE IT Index picked up on Tuesday but slipped for the next two days. It ended Friday with a gain. In fact, amongst the top six gainers, four were tech stocks: Satyam Computers, Wipro, Infosys and TCS.

Though BSE Auto rose till Wednesday, auto stocks had a rough ride this week. Tata Motors and Maruti Udyog were amongst the top three Sensex losers. Stocks like Bajaj Auto, Hero Honda and TVS Motors announced a cut in production on decline in demand. Thursday and Friday, the index slipped.

Pharma stocks were in bad health and except for Tuesday, kept slipping till Friday. Cipla lost 5.62 per cent, Ranbaxy lost 5.02 per cent and Dr Reddy's lost 2.61 per cent this week.

Banking stocks also were on the receiving end. SBI (-1.55 per cent), ICICI Bank (-2.64 per cent) and HDFC Bank (-5.36 per cent) were the Sensex losers.

Metal stock Hindalco shone and was the biggest gainer this week at 11.84 per cent. The scrip surged on speculation that the company may become a takeover target.

Mid-cap stocks had a volatile week with the BSE Mid Cap rising on Tuesday, falling on Wednesday, picking up on Thursday to drop on Friday. The CNX Midcap followed the same trend except that it closed flat on Thursday.

Vital Stats: June 4 -8, 2007
  Sensex   Nifty
Mon 14496 4267
Tue 14535 4285
Wed 14256 4198
Thu 14186 4180
Fri 14064 4145



  FII equity buy  FII equity sale  Net
Mon 2531 2049 482
Tue 1905 1683 222
Wed 2119 2157 -38
Thu 2328 2397 -70
Fri 1646 1869 -223
Figures in Rs/crore



  MF equity buy  MF equity sale  Net
Mon 553 589 -37
Tue 519 483 35
Wed 521 714 -193
Thu 517 604 -87
Fri NA NA NA
Figures in Rs/crore



    BSE    NSE
  Turnover  Shares  Turnover  Shares
Mon 4061 2469 8543 3966
Tue 4391 2536 9191 4186
Wed 5290 2940 10225 4785
Thu 4289 2443 9093 4311
Fri 4619 2391 10577 4116
All figures in crore
Turnover in Rs/crore





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