The tight run up to the US election and US investigation into Indian drug companies resulted in the markets recording the second highest weekly fall this year. The Sensex and the nifty ended 656 and 195 points lower to end the game at 27274 and 8434.
Going ahead, the second quarter results season is here and more stock specific action can be witnessed at the bourses. ICICI Bank, SBI, Bharat Heavy Electricals, Lupin, BPCL and Mahindra & Mahindra will be in focus this week as they announce the second quarterly numbers. More events are likely to unfold in the Tata – Mistry episode and this will impact Tata counters. In general, the volatility that we experienced last week is likely to continue this week too. Investors may watch out the dollar rates , oil prices , IIP numbers and FII flows to get an idea about the market mood.
The special muhurat trading on Sunday gave up some gains and ended in red as the benchmark Sensex ended lower at 27930. The Nifty also ended in red at 8625.70. Initial gains were wiped off as investors started booking profits. The losses were led by the banking, FMCG and power sectors. Dr Reddy’s, Tata motors, power grid and NTPC were the top losers. However the midcap and small cap indices remained upbeat and closed up .50% and 1% respectively.
The benchmark indices – the Sensex and the Nifty ended the past week with marginal gains at 28,061 (up 195 points) and 8,698 (up 86 points) respectively. The indices have been moving in a sideways range for the last one month since there was too much of news flow from around the globe, coupled with geo political tensions and surprise 25 basis points rate cut by the RBI.
Moving ahead, the present geo political tensions are unlikely to have a lasting impact on the economy. Although is causing temporary problems in the short term, the medium term outlook of the market will not be affected. Progress in implementing the GST, good south west monsoons and the rate cut from RBI will keep boosting the investor sentiments.
Concerned by the possible conflict with Pakistan, markets corrected sharply during the last week wiping of profits of the investors. Panic selling was seen as the Sensex tanked 802 points and the nifty sank 271 points to close the week at 27,866 and 8,611.
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