The market started off the week on a negative bias continuing the downward trend. The market mirrored the selling in equity markets across Asia. After slipping over 700 points, the bulls gradually regained control and the market recovered on the back of auto and banking stocks. Among the sectoral indices, BSE Auto and BSE Bankex were among the major gainers. BSE Realty was the top loser followed by BSE IT and BSE Capital Goods.
On Tuesday, after an extremely volatile session, the Sensex closed marginally in the red. Banking shares were the biggest drag on the market after the RBI left all policy rates and CRR unchanged. The market was expecting a small reduction in either the repo rate or the CRR, but most experts were of the view that RBI Governor Y.V. Reddy may maintain status quo. The BSE Bankex was down almost 3.5%. ICICI Bank, HDFC Bank and SBI were down. Among the other top losers in the banks were Canara Bank, BOI, OBC, Indian Overseas Bank and Federal Bank.
On Wednesday, the market was on the receiving end and extended its losing streak to the third straight trading session. The fall could be attributed to global weakness and selling pressure in the frontline stocks like Reliance Industries, ICICI Bank and ONGC.
A highly volatile last session of the month ended almost on a flat note but with a negative bias. Thursday was the F&O expiry, which marked the worst series for Nifty with the index losing over 15.5% during the series. Even the Fed decision to slash rates by 50 basis points was unable to cheer up the bulls as selling pressure was evident in the realty, banking and power stocks.
February started on a good note. The indices rebounded as as investors bought beaten-down software firms. Steel stocks also rose. Future Capital Holdings closed at Rs 908.20 on its market debut, 18.7% higher than its issue price of Rs 765.
The top gainers this week were HDFC (10.5%) and Maruti Suzuki (9.05%). Top losers were DLF (-13.92%) and SBI (-9.12%).
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