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Monday
The Sensex set a new record to close above the 19,000 mark. Overseas investors were net buyers for the 15th consecutive day, taking their total purchases since September 18 (the day the Federal Reserve lowered interest rates) to $7.08 billion. RIL gained on the news that Macquarie Securities increased its price estimate on expectation that the company's plan to build a chemicals plant will bolster profit. Goldman Sachs lowered its rating on RIL to “neutral” from “buy”, citing gains in the stock price for its downgrade. ONGC surged on the back of rising crude oil prices.
Metal stocks shone. The BSE Metal Index closed at a record 16,200. SAIL, Sterlite Industries, Sesa Goa, JSW Steel, Tata Steel and Hindalco all rose.
Tuesday
The market ended flat after Monday's euphoria. ICICI Bank gained on speculation that it may declare higher profits than estimated, specially in the wake of HDFC Bank's and Axis Bank's good results. L&T, which had been an excellent performer this year, fell after analysts judged that its recent gains have been too excessive.
Wednesday
The Securities and Exchange Board of India (SEBI) proposed a cap on investment through Participatory Notes (PNs) in India. The markets reacted strongly and the main indices tumbled down with the Sensex going as low as 17,309.90. Since the Sensex plunged by almost 10%, the BSE and NSE trading systems locked all trading terminals (circuit breaker).
It took the finance minister's words to bring the market back on track. He clarified that the government was not considering a ban on PNs but just a cap on the proportion of money coming through PNs vis-à-vis the total assets under management and the total derivatives position.
The markets bounced back and the Sensex closed at 18,715, lower than the previous day but higher than its earlier slump during the day.
Thursday
Share prices fell by the biggest drop in 2 months. FIIs panicked on the news that investment rules will curb inflows into the Indian stock market. SEBI is to reach a decision on October 25 on how to curb the billions of investments made by unregistered investors, including hedge funds, in Indian stocks. ACC had its biggest drop in years after reporting second quarter earnings that were not in line wit analyst estimates.
Friday
With heavy selling across board, the last trading day of the week was just the opposite of the first. The markets opened on a weak note with mixed signals from other Asian markets. Among the top losers were power stocks like Reliance Energy and Tata Power, which had a dream run in the recent past. All key BSE indices closed in the red, though the IT index ended flat. Top gainers on the Nifty were VSNL, MTNL and Infosys.
Let's hope that next week is not as volatile as this one. But then, one can really never say anymore.
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