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Bearish Sentiment

Looks like the bulls have taken a summer vacation. A volatile rupee and a tired market ensured that the week belonged to the bears. However, mid-caps did fairly well

Though markets started off strong on Monday, selling pressure in ICICI Bank, Infosys, Reliance Communications and Tata Motors brought the indices down. The Sensex and Nifty closed lower at 13,879.25 and 4,111.15, respectively. All the key sectoral indices, except for the Oil & Gas index, ended in the red. HPCL, BPCL, IOC and RIL were the leading gainers among the oil and gas stocks. FIIs and mutual funds started the week by being net buyers at Rs 212 crore and Rs 57.1 crore, respectively.

For the third consecutive day, the indices closed lower at 13,765.46 (Sensex) and 4,077 (Nifty). FIIs continued to be net buyers at Rs 96.7 crore and funds turned into net sellers at Rs 18.8 crore. The strong rupee ensured that tech stocks were hammered with the biggest losers being Infosys, Satyam Computers, Wipro, Rolta, MphasiS BFL and i-Flex.

Turnover on the BSE dropped to Rs 4,280.65 crore (as against Rs 4,497.05 crore on Monday) and on the NSE it rose to Rs 9, 549.68 (as against Rs 8, 657.72 on Monday). Mid-caps too fared badly with the BSE Mid Cap closing at 5779.82 (as against 5844.36 yesterday) and the CNX Midcap closing at 5234.95 (as against 5313.65 yesterday).

On Wednesday, FIIs and mutual funds were net sellers to the tune of Rs 222.2 crore and Rs 114.7 crore, respectively. Turnover further dropped to Rs 4,093.83 crore (BSE) and Rs 8, 394.44 crore (NSE). Yet the indices closed higher. The Sensex closed marginally higher at 13,781.51 and the Nifty at 4,079.30. Despite a negative opening, all indices, except for the BSE Technology and Oil & Gas, recovered from earlier losses. BSE Mid Cap closed higher at 5,792.15 and CNX Midcap at 5,259.55.

On Thursday the bulls were ousted and the Sensex closed lower at 13,771.23 and the Nifty at 4066.80. However, FIIs and funds turned into net buyers at Rs 23.3 crore and Rs 226.5 crore, respectively. Turnover rose to Rs 4,304.8 crore on the BSE and rose much higher on the NSE to Rs 9,225.37 crore. Despite registering a strong opening, the markets pared all gains in the second half of the session as oil and gas, technology and capital good stocks were hammered. Mid-caps did well with the BSE Mid Cap closing at 5,816.12 and the CNX Midcap at 5,278.05. On Friday, the market picked up marginally to close at 13,796.16 (Sensex) and 4,076.65 (Nifty). FIIs were net buyers to the tune of Rs 191.5 crore. Turnover rose to Rs 4,450.43 crore (BSE) and Rs 9,404.94 (NSE). Mid-caps did well with the BSE Mid Cap closing at 5851.27 and CNX Midcap at 5295.10.

Pharma was the biggest loser with Cipla (-5.75 per cent) and Dr Reddy's (-4.99 per cent). Bajaj Auto was the biggest gainer at 5.90 per cent.