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Dip Continues

The markers continued their volatile run making it difficult for even the most seasoned players to predict where it was headed for. The Sensex shed over 400 points during the week

The markers continued their volatile run making it difficult for even the most seasoned players to predict where it was headed for. Unlike the last week ended May 26, the markets this week did not swing wildly.

The FIIs continued to be net sellers taking out some Rs 1,457 crore from the stock markets. Mutual Funds supported the markets and pumped in over Rs 858 crore.

Both the Nifty and the Sensex remained flat on the first day of the week, registering minor gains. But during whole of the week they kept shedding points only to claw back on Friday as if they were out to celebrate a weekend after toiling hard for whole of the week.

The Nifty, which ended May 29 at 3,215 points, was caught in the downward spiral and kept the downward momentum till June 1 when it was at 2962.25 points. Between May 29 and June 1 the index had lost 253 points. But that was not to continue. It shrugged off its losing streak and clawed back 129 points to close the week ended June 2 at 3091.35, down 3.68 per cent.

Similar trend was observed with Sensex. Ending the first day of the week at 10,853 points, it kept losing till June 1 only to salvage some of its lost glory on the last day of the week. The index gained some 380 points, which was the biggest intra-day gain since May 18, 2004. However it closed the week 3.31per cent down.

The combined daily average turnover on both the exchanges was Rs 10,060 crore, down a whopping 21.53 per cent.

The S&P 500, which was down 1.5 per cent for the week ended May 26, went further down over 4 per cent. CNX mid Cap 200 was down 4.35 per cent.

All the BSE sectoral indices ended in the red. The FMCG index lost 6.53 per cent during the week followed by PSU index (-4.8 per cent), Healthcare index (-4.20 per cent) and Metal index (-3.89 per cent). For the FMCG index this fall is significant considering the fact that a week earlier (May 26) it had shed just 0.75 per cent.

The IT index and Bankex were, however, on the lower end of the losing streak. Both the indices lost 2.07 per cent and 2.97 per cent respectively.