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Carnage on Dalal Street

With rising inflation and interest rates, the bears have resurfaced making everyone wonder if the pre-Budget rally is over. FII inflows too were volatile

The markets crashed on Monday. The Nifty closed at 4,058.30 and the Sensex at 14,190.70. The CNX Mid Cap also closed lower at 5,089.90. Other indices too took a beating.
Only 52 scrips had advanced on the NSE while 979 declined. On the BSE, there were just 149 advances as against 1,386 declines. Hindalco lost heavily as the price plunged on the news that it was buying Canada's Novelis.

FIIs were net buyers to the tune of Rs 274.6 crore and mutual funds were net sellers to the tune of Rs 389.38 crore.

Despite mutual funds and FIIs being net buyers to the tune of Rs 24.87 crore and Rs 218.7 crore, the bears continued to rule on Tuesday. The Nifty further slumped to 4,044.55, the Sensex to 14,090.98 and the CNX Mid Cap to 5083.35. However, as compared to Monday, the turnover increased from Rs 4,318.48 crore to Rs 4,875.57 crore (BSE) and from Rs 8,908.45 crore to Rs 10,009.65 crore (NSE).
The Valentine's Day on Wednesday brought little cheer to the market and continued to leave the bulls broken hearted. Mutual funds were net sellers to the tune of Rs 481.14 crore. Despite the fall, valuations are still pretty high. A report from a foreign brokerage said that foreign fund managers were cutting exposure to China and India since monetary tightening concerns are on the rise. FIIs turned into net sellers to tune of Rs 239.6 crore. With the RBI's decision yesterday to hike the CRR, currently at 5.5 per cent, by 50 bps effective in two stages from February 17 and March 3, 2007, banking and real estate stocks took a beating.
The Nifty closed flat at 4047.10 and the Sensex closed still lower at 14,009.90. The CNX Mid Cap picked up to close at 5095.45. Turnover was lower at Rs 4,266.54 crore (BSE) and Rs 8,878.7crore (NSE).

Thanks to the robust Asian market and the slashing of petroleum product prices, Thursday brought some relief with the Nifty closing at 4146.20 and the Sensex at 14,355.55. The CNX Mid Cap continued its upward descent to close at 5244.95. The turnover too rose to Rs 5,049.7 crore (BSE) and Rs 10,025.11 crore (NSE). The week ended with 884 advances on the NSE as against 143 declines. On the BSE, 1,307 scrips advanced while 224 declined. As during all the days this week, FIIs were net buyers this time to the tune of Rs 210.4 crore.
The biggest gainers this week were Wipro (5.26 per cent) and Bharti Airtel (5.17 per cent). The biggest loser was Hindalco (-12.55 per cent). Other prominent scrips that lost were HDFC (- 6.7 per cent), SBI (-6.22 per cent), Grasim (-6.13 per cent) and HDFC Bank (-6.12 per cent).