Showing Strength

The Sensex is currently showing range bound movement with positive inclinations. The main trend of the market remains bullish. The Sensex witnessed a correction since beginning of the week as the Subprime concerns hovered around the investor sentiment. The market saw a brutal sell-off on Wednesday as US Federal policy makers lowered their growth forecast for the next year to 1.8% from 2.5% as anticipated in June. The Sensex fell below 19K, shedding over 750 points during intra-day trades. Asian markets, too, collapsed over 2-3% as a stronger yen and a weaker outlook for the US economy dampening the investor sentiment. Oil prices also jumped over $99 for the first time on Wednesday as the dollar limped against the other currencies and energy supplies remaining tight globally. Despite pressure from the US, the OPEC opted not to raise its production until its next meeting in December.

The benchmark Sensex index showed strength on Friday by gaining over 327 points at close but overall the index slipped 780 points or 4% to 18,853 for the week ended 23rd Nov 2007. The broad based Nifty, too, saw a pullback on Friday but dropped 299 points or 5% to 5,609 for the week ended 23rd Nov 2007. However, the BSE Mid-Cap index showed a solid strength in previous week and hit the record high of 8730 on Monday, slipped 502 points or 6% at the end of the week. The BSE Small-Cap followed the suit and hit the record high of 10,691 on Tuesday but lost 501 points or 5% at the end of the week.

The shares of Deccan Aviation, jumped over 23% to a 52-week high on Wednesday on speculation that it will merge with Kingfisher Airlines Ltd and may show some profit in the second quarter of 2008. The real estate company Omaxe Ltd also rose to record high as company planned to develop properties overseas in places such as Dubai in the United Arab Emirates (UAE). Among the new listings, Religare Enterprises, a financial services provider led by promoters Ranbaxy Laboratories, listed on a premium of 75% at Rs323.75 and shot up to Rs600 despite the Sensex lost over 4% on that day.

During this week, the FII remained net sellers in equities as they sold over Rs3,321 crore stocks till November 21st while, the domestic mutual funds sold around Rs268 crore of stocks. The annual inflation based on the wholesale price index slipped to 3.01% in the week ended 10th Nov 2007 against expectations of 3.20%.