Market ends week with modest losses

The Indian markets registered modest losses in this truncated week owing to lower IIP, disappointing Infosys results and a spike in inflation.

Major news for the week

February IIP at 3.6% versus 3.7%

Infosys Q4 net profit at Rs1,818 crore; below expectation

Inflation for March at 8.98% versus 8.31%

IMF lowers 2011 growth forecast to 8.2%



Indian indices

Three-day trading week ended with modest losses. The major disappointments this week - February IIP came in lower-than-expected, Infosys Technologies’ Q4 results missed market expectations and a surge in inflation for March. Rising crude oil prices continued to be a major concern and weighed on the sentiments. Investors got into profit booking in this truncated week, with markets posting losses in two out of three sessions.

The Sensex swung around 636 points between a high of 19737 and a low of 19102 and closed the week at 19387, lower by 65 points or 0.33%. The Nifty swung about 188 points between a high of 5924 and a low of 5736 and shut the week at 5825, down 17 points or 0.30%.

Global indices

All the world indices remained under pressure this week. Shanghai Composite was the only gainer, rising by 0.69%. The top loser was France CAC 40, down by 2.25%. The Sensex was the least loser, declining by 0.33%.

Sectoral and stock screening

Seven sectors went up this week, while six advanced. BSE IT was the worst performer, down by 4.57% led by weakness in Infosys on poor Q4 results. Following that BSE TECk slipped by 3.09% and BSE Realty declined by 2.19%. The gainers include - BSE Fast Moving Consumer Goods (FMCG) surged by 2.1%, followed by BSE Capital Goods (CG) rose by 1.73% and BSE Bankex up by 0.63%.

Coming to 'A' group stocks, Coromandel International was the top gainer of the week rising by 10.2%, followed by Hero Honda up by 10.06% and Bhushan Steel surged by 8.96%. on the other side, Infosys Technologies dropped by 7.38%, Core Projects & Technologies fell by 5.67% and DLF slipped by 5.55%.

FII/MF activity

The foreign institutional investor (FIIs) participation into the Indian markets has been slowed down this week. The FIIs have bought Indian equities worth a net of Rs85.3 crore as against net buy of Rs6,749.4 crore seen in the previous week. The local investors switched to buying mode and purchased Indian equities worth a net of Rs421.4 crore as compared to net sell of Rs688.5 crore seen in the previous week.

Outlook

Earnings season will set the tone for the markets in the next week, with index heavyweights HDFC Bank, Reliance Industries, Tata Consultancy Services and Jindal Steel & Power declaring their results. The India Meteorological Department (IMD) will give its initial forecast for the June to September South West monsoon rains on Tuesday (April 19, 2011). Good monsoon will help ease food inflation and boost rural income, a key driver of consumption demand.

Crude oil prices will remain a major concern. Global cues and FII activity may also play a significant role in deciding the future course of the Indian markets.