Frequent bouts of volatility troubled equity investors in the week ended December 23, 2005. However, sustained buying from the foreign institutional investors supported the sentiments. Over the week, the 30-stock BSE Sensex shed nearly 27 points to close at 9,257 levels, while the Nifty ended the week down 0.19 per cent. Among the broader indices, the S&P CNX 500 closed up a marginal 0.03 per cent, while the CNX Midcap index ended the week down 0.08 per cent.
Sustained buying, especially by the foreign institutional investors, helped the stock indices build on the last week's gains on Monday. Easing crude prices added to the positive sentiments. The Sensex opened weak but soon gained momentum. The index moved in the range of 9,263.32 - 9,400.91 levels to finally close at 9,394.27 mark, up nearly 110 points. The Nifty too added 1.15 per cent to end the day at 2,842.60 levels. Mid- and small-cap stocks too saw considerable buying interest, as the CNX Midcap index closed up 0.99 per cent on Monday. Among others, FMCG stocks rallied on the Sensex.
Though FIIs continued their buying spree even on Tuesday, equity markets tumbled amid volatile trading. The Sensex opened on a positive note and touched a high of 9,421.39 levels during the early trades. However, selling pressure dragged it down to an intra-day low of 9,312.35 points in the afternoon session. The index recovered some ground thereafter to close at 9,346.24 points, down 48 points from its previous day close. The Nifty too slipped 0.58 per cent to 2,824 levels. Among the Sensex constituents, technology stocks lost the most, while PSU stocks managed some gain.
After a positive start to the day, equity markets dipped sharply during the closing hours to end flat on Wednesday. The 30-stock BSE Sensex remained in the positive territory during major part of the day to touch a high of 9,423.25 levels. However, selling pressure dragged the index down during the last two hours of the trading to a low of 9,272.76 levels. However, it recovered some ground to end the day at 9,339.17 mark, down seven points. The Nifty settled at 2823, down 0.12 per cent. Mid-cap stocks too had a similar outing as the CNX Midcap index closed a marginal 0.03 per cent down on Wednesday. Among the Sensex constituents, banking stocks were under pressure.
Frequent bouts of volatility troubled equity investors on Thursday. The Sensex opened on a positive note but fell sharply. However, the mood was positive and the index remained up through the major part of the day to touch a high of 9,413.70 points during the morning session. Sensex dipped below its previous close for a brief period during the afternoon session when it touched an intra-day low of 9,329.70 levels. But soon it gained momentum and ended the day up 33 points at 9,372.30 levels. The Nifty too added 0.44 per cent to close at 2,837 mark. Mid-cap stocks had a rewarding outing, as the CNX Midcap ended the day up 0.33 per cent.
Across the board profit booking dragged the equity markets down on Friday. Markets started the day on a positive note but lost their way as the trading progressed to end in the red. The 30-stock BSE Sensex opened above 9,400 mark to touch a high of 9,434.82 levels during the early morning trades. However, it had a consistent fall thereafter. The index touched an intra-day low of 9,239.77 points during the closing hours. Finally, the Sensex ended the day down 115 points at 9,256.91 mark. The Nifty too slipped 1.1 per cent to close at 2,804 levels. Among the Sensex constituents, PSU and FMCG stocks led the pack of losers.
Among the 30 Sensex stocks, 16 lost over the week. The pack of losers was led by nearly 8 per cent decline in Ranbaxy Laboratories. Wipro (up 5.36 per cent) and HDFC Bank (up 4 per cent) were top gainers of the week.
Among the sectoral indices, BSE PSU (up 0.73 per cent) and BSE FMCG (up 0.31 per cent) ended in the positive territory, while BSE Healthcare (down 1.49 per cent), BSE Metal (down 0.79 per cent), BSE Bankex (down 0.32 per cent), and BSE IT (down 0.23 per cent) lost over the week.
The combined daily average turnover on both exchanges fell by 3.79 per cent to Rs 11,176 crore in the week ended December 23, 2005. The FIIs invested a whopping Rs 4,778 crore, while domestic mutual funds turned net sellers during the week.
Outlook
Though markets may remain volatile in the days ahead, there's no reason to believe that it would reverse trend. The run is likely to continue. The forthcoming third quarter results would be crucial and the markets would search for direction from it. It would be interesting to see how long FIIs continue their huge investments in the Indian markets.
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