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Markets enter choppy waters

The week saw volatile trading with the bulls and bears being victorious on different days. However, intra-day trading was also unpredictable

The first day of the week witnessed a very volatile trading day. Nevertheless, the bulls emerged victorious. Buying demand was seen in frontline stocks like RIL, ONGC, Tata Motors, Tata Steel and ICICI Bank. Finally, the Sensex closed higher at 13,731 and Nifty closed at 3,929. Pharma stocks, auto stocks and PSU stocks ended with healthy gains.

The turnover on the BSE was Rs 3,828.96 crore while that on the NSE was Rs 8,222.2 crore. FIIs were net sellers to the tune of Rs 46 crore while mutual funds were net buyers (Rs 45.46 crore).

On Tuesday, it was the bears calling the shots. The Sensex dropped to 13,382 and the Nifty to 3,832. The downturn in the market was the result of weakness among the equity indices across the globe. Selling was also seen across other emerging markets after Thailand imposed currency controls on foreign investors. Thai stocks fell sharply after regulators told banks to lock up 30 per cent of new foreign currency deposits for a year to curb speculation. BHEL, L&T, Tata Motors, ACC and SBI led the fall while sugar stocks held firm since India partially lifted a ban on exports of the product.

The turnover on the BSE and NSE rose to Rs 4,182.50 crore and Rs 9066.2 crore, respectively. Once again, mutual funds were net buyers (Rs 10.69 crore) and FIIs net sellers (Rs 182.7 crore).

The market continued to fall on Wednesday. The Sensex dropped to 13,340 and the Nifty to 3,816. Once again, trading turned out to be very volatile with the Sensex swinging over 300 points between and intra-day low and high. Selling pressure was witnessed in auto, banking and select tech stocks while pharma stocks advanced.

The turnover on BSE and NSE continued to rise to Rs 4,423.51 crore and Rs 10,066.83 crore, respectively. FIIs continued to be net sellers (Rs 673.4 crore) while mutual funds were net buyers at Rs 460.47 crore.

Thursday began with selling pressure dragging the Sensex below 13,200. However, the bulls fought hard to emerge. Auto, tech, telecom and FMCG stocks advanced allowing for modest gains in the market. The Sensex closed higher at 13,384.86 and the Nifty at 3,834.

The turnover on the BSE and NSE dropped to Rs 4,417 crore and Rs 7,936.67 crore, respectively. Mutual funds were net buyers to the tune of Rs 236.22 crore while FIIs were net sellers to the tune of Rs 365.1 crore.

It turned out to be a Good Friday for traders. The Sensex closed at 13,471.74 and the Nifty at 3,871. The turnover further slipped to Rs 4,210.15 crore and Rs 7,570.55 crore on the BSE and NSE.

Mid-caps witnessed a volatile week. The CNX Mid Cap closed at 5,009.75 on Monday and then slipped over the next two days. Thursday it picked up again to close at 4,973.6 and Friday it closed higher at 5,017.3.

Throughout the week (Monday to Thursday), FIIs were net sellers and mutual funds were net buyers.

Monday witnessed more declines than advances on the NSE. However, on the BSE, the opposite trend prevailed. On Tuesday and Wednesday, more stocks declined on the BSE and NSE than advanced. The last two days of the week saw a change in that and there were more advances than declines on both the exchanges.

Amongst the Sensex stocks, the biggest gainers were ONGC (6 per cent) and the biggest loser was BHEL (down 7.82 per cent).