Markets rise for 3rd week

It was an action-packed week, with the markets reacting to the events like IIP, Inflation and RBI policy. The Sensex ended the week 67 points higher and the Nifty gained 25 points

Major news for the week

RBI hikes repo rate by 25 basis points

August inflation at 9.78% versus 9.22% in July

July IIP at 3.3% versus 8.8%

Petrol prices increase by Rs3.14 a litre

Tata Motors' August global vehicle sales rise 3%

GTL out of F&O from September 16



Indian indices

The Indian markets ended an eventful week in the green. Hopes of some moves by European leaders towards easing the euro-zone sovereign debt crisis bolstered investor confidence in the markets. Global optimism over easing euro zone debt worries led to some relief.

Events back home, India’s inflation rose at its fastest pace in 13 months in August at 9.78%, which put pressure on the Reserve Bank of India to raise repo rate by 25 basis points in its mid-quarter monetary policy review. This caused investors to book some profits, trimming weekly gains. Also, India's factory output plunged to the slowest pace in 24 months at 3.3%, which was a cause of worry.

During the week, the market registered gains in three out of the five trading sessions. The Sensex oscillated 748 points between a weekly high of 17123 and a weekly low of 16375, and closed the week higher by 67 points or 0.4% at 16934. The Nifty swung 233 points between a weekly high of 5144 and a weekly low of 4911, and closed the week higher by 25 points or 0.49% at 5084. The Indian markets continued its rising trend for the third straight week.

Global indices

Barring Hang Seng down by 2.07% and Shanghai Composite down by 0.62%, all the world markets closed the week higher. The top gainer of the week was Dax 100 that rose by 7.39%, then comes Nasdaq up by 6.25%, Dow Jones advanced by 4.7% and FTSE100 surged by 2.95%.

Sectoral and stock screening

Among the 13 sectoral indices, nine closed the week higher. BSE IT was the top performer of the week rising by 3.06%, BSE Oil & Gas gained by 1.51% and BSE Realty surged by 1.44%. Losers of the week - BSE CG lost by 3.11%, BSE CD fell by 1.62%, BSE FMCG dipped by 0.68% and BSE Metal down by 0.47%.

Looking into 'A' group stocks, biggest gainers of the week - Jaypee Infratech shot up by 16.47%, SKS Microfinance up by 15.79% and Financial Technologies (India) surged by 10.67%. Top losers of week - Marico dropped by 10.49%, Pantaloon Retail (India) down by 10.35% and Opto Circuits India fell by 10.19%.

FII/MF activity

The foreign institutional investors ( FIIs) sold Indian shares worth a net of Rs1,211.50 crore as compared to net buy of Rs2,362.50 crore seen in the previous week. The domestic institutional investors ( DIIs) remained net sellers this week and sold Indian shares worth a net of Rs196.20 crore as compared to net sell of Rs486 crore seen in the previous week.

Outlook

In the upcoming week, the Indian markets will track global events for further course of action. Markets on Monday (September 19, 2011) may react to the outcome of the two-day meeting (September 16-17, 2011) of euro-zone finance ministers. Developments in the Europe will continue to remain in focus.