Markets register modest losses this week

Losses were limited this week, with the Sensex closing lower by 60 points and the Nifty down 10 points.

Major headlines of the week

Food inflation at 8.55% versus 7.47%

BHEL net profit up 47% in Q4

DLF Q4 net profit at Rs737 crore

Tata Steel FY11 consolidated net profit at Rs8,993 crore

Upstream companies subsidy share to be restored at 33.3%



Indian indices

The Indian markets closed the week with modest losses, recovering from the 12-week lows. Volatility was intense this week as traders rolled over positions in the derivatives segment from the near-month May 2011 series to June 2011 series. Investors indulged in selling activity tracking weakness in global stocks and dismal results of some major companies. Uncertainty over the euro zone debt crisis and the global economy weighed on the sentiments.

The Sensex swung 513 points and the Nifty 157 points. Wrapping the week, the Sensex finished 60 points or 0.33% lower at 18266 and the Nifty shut at 5476, 10 points or 0.19% lower.

Global indices

All the global equities ended with losses this week. The biggest loser of the week was Shanghai Composite falling by 5.21%, following that Dax 100 dropped by 2.1% and FTSE 100 lost by 1.13%. The Sensex stood the lowest loser of the week, down by 0.33%.

Sectoral and stock screening

Top three sectoral gainers of the week — BSE Oil & Gas rose by 2.41%, BSE Consumer Durables (CD) up by 0.97% and BSE Bankex up by 0.51%. Top three sectoral losers — BSE Power fell by 2.22%, BSE Information Technology (IT) declined by 1.86% and BSE Auto slipped by 1.45%.

Looking into 'A' group stocks, Jubilant FoodWorks was the top gainer of the week rising by 17.86%, followed by Educomp Solutions up by 13.23% and Mphasis surged by 12.36%. On the losers’ side, Aurobindo Pharma slid by 14.32%, Tata Global Beverages fell by 9.26% and D B Realty went down by 7.88%.

FII/MF activity

Foreign institutional investors ( FIIs) switched to buying this week and purchased Indian stocks worth a net of Rs626 crore as against net sell of Rs4,215.6 crore seen in the previo us week. Domestic institutional investors (DIIs) continued to be the net sellers and sold Indian stocks to the tune of Rs167.5 crore this week as against net sell of Rs583.8 crore seen in the previo us week.

Outlook

In the coming week, major companies’ results and key macroeconomic data will dictate the near-term trend on the bourses. The automobile and cement companies stocks will be in foc us as the auto sales numbers and cement dispatches for May will be out. The investors will also closely watch the progress of monsoon. The global risk appetite holds key with regard to inflow of foreign funds into Indian equities.