After beginning on a positive note in the first few trading sessions, the markets witnessed a correction and ended the week marginally down. The BSE Sensex lost 0.5 per cent while the Nifty remained nearly flat. Broader markets performed better with the S&P 500 gaining a per cent. Mid caps, which have been rallying since April continued their upmove with the CNX Mid Cap index gaining 2.7 per cent. In the US, Nasdaq continued to rise for the fourth consecutive week gaining 1.1 per cent. In comparison the Dow Jones Industrial Average inched up 0.2 per cent over the week.
The BSE PSU index witnessed maximum gain among sectoral indices. The index gained 3.6 per cent with the heavyweight - ONGC moving up 3.2 per cent for the week. Disinvestment led stocks – BPCL and HPCL also managed to gain 4.4 and 7.2 respectively for the week. Most of the PSU banks such as Canara Bank, Andhra Bank and PNB showed marginal gains for the week. The BSE IT managed to gain nearly 2 per cent. Infosys remained flat while Wipro managed to gain 2.6 per cent.
On the other hand, both the FMCG and Healthcare index moved downwards. The BSE FMCG lost 0.4 per cent with the major HLL ending the week marginally down. BSE Healthcare was down 1.6 per cent with the Ranbaxy losing 5 per cent over the week.
Meanwhile, HDFC posted a net profit of Rs 239 crore, a 16 per cent rise from Rs 206 crore in the same quarter last year. The company has also recommended a dividend of Rs 11 per share. The stock had rallied last week prior to its results. This week, however, it lost 7.8 per cent.
Also with the passing of the Power bill in the Parliament, stocks as ABB and BHEL rallied. While ABB gained 1.6 per cent, BHEL touched its new 52-week high at Rs 252 and was up by 6.5 per cent for the week.
The week also saw significant FII buying into the equity markets - worth Rs 239 crore. This is the third week in succession when net FII inflows have been in excess of Rs 200 crore. Mutual funds bought equities worth Rs 20 crore till Thursday.
FII inflows have continued to be steady and this bodes well for the markets. Further progress on the disinvestment of HPCL and BPCL, which is being discussed in Parliament, could serve as a trigger for stock markets.