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Mixed Bag

Yet again Indian markets defied global sentiment and remained resolute in their performance. The past week was dominated by the large caps while the smaller companies taking a back seat

The mid and small cap stocks failed to sustain the interest of the bulls and conceded a large portion of their gains of the past week. The CNX Midcap fell by (-) 6.88 per cent while the BSE Midcap fell (-) 6.67 per cent. Unlike the past week the broader Nifty did not fair as well as the Sensex and lost (-) 1.18 per cent as compared to the Sensex's gain of 0.67 per cent. Inspite of this lack luster show the sensex did touch the psychological 21000 mark; however it encountered sharp resistance at this level and came under selling pressure.

The week also marked the beginning of the earnings season when all corporates report their quarter numbers.

The first three trading sessions from Monday to Wednesday saw the Sensex and Nifty closing flat. This was inspite of weakness in global markets. More bad news on the employment front in the US sparked a sell off across markets on Monday. However, strong domestic cues capped losses in India.

On Tuesday a rebound in oil prices brought some cheer to global markets with most global Indices reversing a losing spree. While intraday the sensex marched forth to touch 21000, profit selling across the board led to a slide and the sensex closed flat gaining 60.68 points.

On Wednesday key domestic indices finally came under the pressure of global weakness and ended flat in the negative territory. Most other Asian indices posted modest gains on Wednesday.

The bearish trend continued on to Thursday and the market fell sharply. While markets opened on a positive note with the sensex gaining 300 points in early trade, by closing time the sensex was down by 287 points. Lack of interest by FII coupled with weak global cues did the trick in pulling key indices down. However Tata motor's launch of the Nano insulated the company from weak sentiment and the scrip galloped by 4 per cent during the day.

On Friday, the sell off in the markets was replaced by refreshed buying. The saviour was banks which rose on the back of possible softening of interest rates. However gains were capped owing to weaker than expected Industrial output growth. Also traders were seen liquidating holdings in order to provide for next week's Reliance Power IPO. Quarter end results delivered from Infosys failed to excite the market. In fact the scrip moved south by 1 per cent.

Through the week most sectoral indices were in the red with the exception of BSE Bankex (gain of 4.82 per cent) and BSE Realty (1.48 per cent). The metal index took quite a beating with BSE Metal losing (-) 7.62 per cent.

The biggest gainers on the BSE Sensex were ICICI Bank (gain of 12.02 per cent), DLF (7.51 per cent) and Reliance Industries (4.77 per cent). For a change the IT stocks didn't make up the bulk of the biggest losers. The list was replaced by ACC (- 10.3 per cent), Tata Steel (-8.26 per cent) and Hindalco Industries (- 7.98 per cent).

For the second week in a row the best performing equity mutual funds were banking funds that gained 0.72 per cent. The average diversified equity fund on the other hand lost (-) 4 per cent during the week. Index funds did a tad better losing a marginal (-) 0.68 per cent.

The asset class that truly outperformed equity was Gold. The average Gold ETF returning 3.93 per cent during the week.

Vital Stats: January 7-January 11, 2008
  BSE Sensex  CNX Midcap  S&P CNX Nifty  BSE Mid Cap
Mon 20812.65 9655.45 6279.10 10102.23
Tues 20873.33 9417.50 6287.85 9817.07
Wed 20869.78 9333.35 6272.00 9769.99
Thu 20582.08 9024.40 6156.95 9440.45
Fri 20827.45 8973.80 6200.10 9438.48
Net Buying (Equity)
  FII  MF    
Mon -80.90 30.00  
Tues 1053.40 12.50  
Wed 274.60 -201.20  
Thu -630.80 46.30  
Figures in Rs crore
  BSE Turnover  BSE Shares  NSE Turnover  NSE Shares
Mon 10728.24 7568.00 23321.33 9210.91
Tues 11869.84 10806.00 25435.15 9622.45
Wed 9668.95 6217.00 21469.63 7535.89
Thu 9123.01 5163.00 20932.13 6930.38
Fri 8018.66 4142.00 18994.43 6382.24
Number of shares in Lakh. Turnover in Rs/crore