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A Week to Remember

This week was full of negative sentiment. Whether the news was from the global front or domestic, the markets did not have much to cheer about

This week had its fill of bad news…………..

Last Friday (September 7), the US released a report on the weak job situation that had repercussions all over the globe. Markets around the world slumped on Monday following the grim data and concerns about the economic health of the US. This led to further speculation on how much the Federal Reserve will cut rates at its meeting on September 18. Countrywide Financial, the biggest US mortgage company, said it will cut around 20% of its work force over the next three months.

Japan's economy contracted for the first time in more than two years after companies cut spending last quarter. The world's second-largest economy shrank at a 1.2% annual pace in the three months ended June 30, compared with the government's initial estimate for 0.5% growth.

In UK, Northern Rock Plc. said that the Bank of England agreed to provide emergency funds to ease a severe liquidity squeeze.

Back home, the government released its data for July which showed that industrial production grew at the slowest pace in nine months. The rupee climbed to its strongest in a month hitting tech stocks the hardest. And of course, Rahul Dravid too was in the news though he never managed to affect market sentiment.

How the markets reacted…….

On Monday, the markets closed flat. But the Sensex ended in positive territory (+ 0.04%) while the Nifty ended in negative territory (- 0.04%). Mid caps did well with the BSE Mid Cap and CNX Midcap closing higher.

The slump continued on Tuesday. TCS, Infosys and Wipro all fell on the back of the rising rupee. Wednesday was no better. On Thursday, the bulls managed to prevail with banking stocks taking the lead. All gains were reversed on Friday as share prices once again fell.

Vital Stats: September 10- 14, 2007
   Sensex   Nifty   BSE Mid Cap   CNX Midcap
Mon 15596.83 4507.85 6884.39 6235.75
Tue 15542.77 4497.05 6875.74 6252.80
Wed 15505.36 4496.85 6889.55 6275.40
Thu 15614.44 4528.95 6946.70 6336.75
Fri 15603.80 4518.00 6897.00 6279.90
Net Buying (Equity)
   FII   MF     
Mon -62.80 9.10  
Tue 445.70 -179.30  
Wed 281.90 73.40  
Thu -46.60 80.20  
Figures in Rs/crore
   BSE Turnover   BSE Shares   NSE Turnover   NSE Shares
Mon 4046.87 3659.00 10835.63 6210.82
Tue 5333.74 4344.00 10856.74 6035.90
Wed 5391.21 4558.00 10835.63 6210.82
Thu 5286.91 4462.00 11075.33 5749.68
Fri 6506.10 5230.00 12509.35 6149.62
Number of shares in lakhs. Turnover in Rs/crore.

BSE Metal and BSE Oil & Gas both had a strong run this week. BSE Bankex slumped in the first few days of the week but rose over Thursday and Friday. BSE Realty stayed constant over Monday and Tuesday but rose over the remaining three days.

Out of the 30 Sensex stocks, only 14 closed in positive territory. All tech stocks - TCS, Infosys, Satyam, Wipro - closed negatively and were amongst the worst hit. Ranbaxy closed positively but Cipla and Dr Reddy's did not. HDFC, HDFC Bank and SBI gained, ICICI Bank lost.