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Markets Drift Lower

Except for Monday, the Sensex declined on every day of the last week to close 49 points lower. FIIs were net buyers, while mutual funds sold stocks worth Rs 161.6 crore

Though the markets opened strong on Monday, the bullishness did not continue for the rest of the week as the markets started declining through the week. The Sensex closed at its all-time high of 6679 points on Monday.

At the end of the week the Sensex lost 0.75 per cent to close at 6584.32 while the Nifty declined 1.27 per cent to 2055.55 points. Mid-caps lost after three weeks of gains, closing 1.74 per cent lower. The S&P CNX 500 lost 1.29 per cent. After a 56 point rally on Monday, the Sensex lost 62 points on Wednesday. The declines on the other days of the week were marginal.

The Jet Airways IPO was fully subscribed within minutes of its opening on Friday and by the end of the day, it was oversubscribed 4.4 times.

Coming to sectoral indices, the IT Index gained 1.17 per cent. There is renewed interest in tech stocks after the quarterly results. The BSE Metal Index was up 1.4 per cent. The BSE FMCG Index fell almost 4 per cent as Hindustan Lever lost 6.8 per cent.

The BSE Bankex ended the week flat as the index lost 0.29 per cent. Pharma companies and PSUs followed the market trend and the BSE PSU Index dipped 1.25 per cent while the BSE Healthcare Index lost 2 per cent. Auto stocks fell as Maruti and Mahindra & Mahindra's declined by 7 and 6 per cent respectively. Tata Motors and Hero Honda fell 5.5 and 2.7 per cent respectively.

FIIs were net buyers to the tune of Rs 2,394 crore, while mutual funds sold stocks of Rs 161.6 crore.

The market is waiting for the Union Budget and digesting the news that appears on the front pages of newspapers. There could be some profit-taking, but new buyers at lower levels are provide support.