VR Logo

Markets End Marginally Higher

At the end of the week, the BSE Sensex stood at 6451.54 mark, up 0.99 per cent. The Nifty signed off the week 0.55 per cent higher at 1988.3 mark

The equity markets ended the week a tad higher. At the close of the week, the BSE Sensex stood at 6451.54 mark, up 0.99 per cent. The NSE Nifty signed off the week 0.55 per cent higher at 1988.3 mark.

After gaining some ground on Monday, the equity markets skidded on Tuesday and Wednesday. The trend was reversed on Thursday, when the markets surged, but this was again cut short by the declines on Friday.

Despite the volatility, the mid cap stocks benchmark CNX Mid Cap 200 remained a steady gainer as it rose by 3.48 per cent during the week ended May 13, 2005. The broader based S&P CNX 500 index also gained strength, ending the week 1.13 per cent higher. Fall in the global crude oil prices provided support to the markets during the week.

Among the sectoral indices, BSE Healthcare index posted impressive gains, rising by 1.94 per cent during the week. Rise in the stock prices of healthcare majors Ranbaxy Laboratories and Cipla contributed to this surge. BSE Bankex gained 1.44 per cent, while BSE FMCG and BSE Metal index surged by 0.93 and 0.71 per cent respectively during the week. BSE IT Index rose by 0.55 per cent, even though some of the tech scrips collapsed on Friday due to the weakness in US markets.

Zee Telefilms Ltd was the biggest gainer among the Sensex stocks as it surged by 4.8 per cent. ICICI Bank Ltd climbed 4.7 per cent and Cipla gained 3.88 per cent over the week. Prominent losers among the index heavyweights included Reliance Industries Ltd that slipped by 2.3 per cent, followed by Hindustan Lever Ltd. and HDFC Bank Ltd. that lost 2.12 per cent and 1.5 per cent respectively.

The FII outflows, which amounted to Rs 150.3 crore, checked the rising stock markets. However, domestic mutual funds injected Rs 662.22 crore in the equity markets during the week. The average turnover rose to the levels of Rs 5,900 crore during the week.

Outlook

In the absence of any major trigger, the markets are wavering. The direction of the markets next week is likely to be determined by the results of some prominent companies like Tata Motors, Tisco, State Bank of India, BPCL and Bank of Baroda.

The FII outflows from the Indian equity markets are being made good by the surge in the inflows from domestic mutual funds. However, if these inflows stop, the markets may take a negative stance. On the other hand, falling crude oil prices are likely to add strength to the markets.