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Troughs and Crests Again

The markets kept losing ground in the week ended June 9. Both the Sensex and Nifty registered losses in the first four days of the week, only to bounce back on Friday

The markets kept losing ground in the week ended June 9. Both the Sensex and Nifty registered losses in the first four days of the week, only to bounce back on Friday.

The 30-share Sensex lost 3.95 per cent (Nifty 4.98per cent) over the five trading days, closing the week at 9,810 points (Nifty 2866 points) from 10,451 levels on previous Friday (June 2).

All the sectoral indices too ended the week in the red. BSE IT index was down 3.44per cent, BSE FMCG slipped 4.8per cent and Metal dropped 9.25 per cent. The healthcare index caught a cold with a fall of 8 per cent.

FIIs were net buyers in the week pumping in Rs 1,439.50 crore in five trading days. Mutual funds, however, were sellers on the street selling over Rs 1,125.83 crore worth of equities.

Total turnover on the BSE touched Rs 16,492.7 crore and the NSE saw deals worth Rs 36371.19 crore in the week under review.

On Monday (June 5), concerns over the metal prices and bearish FII outlook pulled the Sensex down by 238 points (Nifty 74 points). The market opened strong on hectic fund buying and crossed 10,500 level during the day. However, the Sensex closed at 10,213 due to heavy profit booking. The Indian markets reflected the trend in the key Asian markets. The Nikkei was down 0.8 per cent, Kospi fell 0.6 per cent and Singapore's Straits Times ended 0.5 per cent down. Among the 2,467 stocks traded on BSE, only 698 managed to record gains. Among the Sensex stocks, Reliance Industries and Hindustan Lever lost 3.3 per cent and 3.4 per cent, respectively.

FIIs were bullish on the Street with net buy of Rs 640.5 crore. Mutual Funds sold Rs 109.43 worth of equities on Monday.

The slide further accelerated on Tuesday after the government announced the increase in petroleum product prices and concerns over the likely increase in US interest rate. The Sensex slipped below the 10,000 mark as local players stayed away from market fearing that FIIs may pull out money from the emerging markets if the US hikes rates. The Sensex closed at 9,957 points (Nifty 2937) down 256 points (Nifty 79.35 points) from Monday's close. Mid- and Small-caps were hit the hardest as investors preferred to stay away. Among the top loser in Sensex stocks, Reliance Energy lost 7.5per cent.

Markets came under heavy selling pressure from retail investors and mutual funds on Wednesday. The Sensex lost 201 points (Nifty 76 points), or 2 per cent, to close the day at 9,609 (Nifty 2,860). Apart from small- & mid-caps, metal stocks took a major hit. L&T took the whack and ended the day down over 6.6 per cent. Sentiments remained bearish as there were almost no support from domestic investors and fund houses.

There were no respite for the investor on Thursday too as the indices kept moving south. The Sensex lost 461 points (Nifty 136 points) to end the day at 9,296 (Nifty 2,724) down 4.7 per cent from Wednesday's closing. Bajaj Auto was the hardest hit taking a knock of 8.4 per cent. Other heavyweight losers included Cipla, Tata Power, Ranbaxy, Tata Steel, Bharti Tele among others. The RBI decision to hike the reserve repo rate by 25 basis points made players more cautious.

Friday offered investors some reasons to cheer. The Sensex came out of selling pressure to record the highest ever single-day gain of 515 points. An upturn in the US markets, drop in crude prices and the gains on Asian bourses helped the Indian indices reverse the losing streak. The Sensex ended the week at 9,810. Out of the 2,466 stocks traded on the BSE, 1,596 advanced while 830 ended the day in the red. Among the top gainers was Reliance Energy, which surged 14.91 per cent; Grasim Industries was up 13.6per cent and Reliance Industries gained 11.74 per cent.