Despite concerns over inflation, rising interest rates and oil prices crossing $61 per barrel, the week began with some good news.
On Monday, the Sensex and Nifty both closed higher at 13, 649.52 and 3,942, respectively. After a volatile day, the bulls managed to rebound. Metal stocks fared well. FIIs and MFs were net buyers to the tune of Rs 4287.2 crore and Rs 270.59 crore, respectively.
On Tuesday the bears ruled and the market plunged sharply ahead of the Budget. The Sensex closed lower at 13,478.83 and the Nifty at 3, 893.90. Banking, FMCG, technology and auto stocks led the fall. FMCG stocks were the top losers. Large-caps like ITC and HLL slipped along with mid-caps like Tata Tea, McDowell and Nirma. Real estate and construction stocks did well. Mutual funds saw this as a buying opportunity and were net buyers to the tune of Rs 349 crore. FIIs turned into net sellers to the tune of Rs 582 crore.
Wednesday was eagerly awaited for the Budget. The two positives - hike in the STT and no comeback in long-term capital gains tax - did nothing to lift up market sentiment. Instead, the upping of dividend distribution tax and the increase of education cess was a dampner. The Sensex plunged to 12, 938.09 and the Nifty to 3,745.30. Cement, construction and technology stocks were the major losers followed by metal and auto stocks. The FMCG index was the only gainer. Mutual funds continued buying and were net buyers to the tune of Rs 243 crore. FIIs continued selling and were net sellers to the tune of Rs 416 crore.
March 1, saw the bulls back in action. On Thursday, the Sensex closed higher at 13,159.55 and the Nifty at 3,811.20. Technology stocks led the rally. All key indices, except for auto, closed in the green. Mutual funds turned into net sellers to the tune of Rs 29 crore while FIIs sold massively and were net sellers to the tune of Rs 1,644 crore.
Friday was the last day of the week and a day many would like to forget. The Sensex closed at 12,886 and the Nifty at 3,727. All major sector indices closed in the negative territory. Banking, capital goods, technology and oil stocks were the biggest losers. Ever since Tuesday, the FIIs have been net sellers. On Friday, it was to the extent of Rs 439 crore.
The biggest losers this week were Gujarat Ambuja Cements (-10.79 per cent ) and Bajaj Auto (-10.21 per cent). L&T lost 9.08 per cent and Wipro, 8.03 per cent.
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