Markets end rollercoaster week with 2% rise

After a massive fall in the previous week, the Indian markets closed this week on a higher note. The Sensex rose 1.8% and the Nifty gained 1.55%

Major news for the week

Food inflation at 9.13% versus 8.84%

Cabinet approves new Mining Bill

CBI probes Anil Ambani in 2G scam

German parliament passes expanded euro fund

ONGC approves Cairn-Vedanta deal

Finance Ministry considers trimming STT

Govt may put divestment plans on hold

Indian court rules against Tata in Singur land case

Indian economy will continue to grow: Pratibha Patil



Indian indices

It was a volatile week, with the markets falling on one day and then rising another. The vote in Germany was a cause for a lot of relief as the European leaders work to prevent a Greek debt default that could translate into a global economic slowdown, with the Germany approving expansion of European Bailout fund. Further, the finance ministry is considering some tax cuts on equities to lower transaction costs and broaden participation in the market boosted the sentiment. However, fears of muted-to-weak Q2 September 2011 corporate earnings and caution due to absence of a clear plan to resolve the euro-zone debt crisis capped gains. The market declined in three out of five trading sessions during the week.

The Sensex swung 955 points between a weekly high of 16756 and a weekly low of 15801 and closed the week higher by 292 points or 1.8% at 16454. The Nifty swung 275 points between a weekly high of 5034 and a weekly low of 4759 and ended the week higher by 76 points or 1.55% at 4943.

Sectoral and stock screening

Among the 13 sectoral indices, seven went up, while rest six fell. Major Gainers - BSE IT was the star performer rising by 5.81%, BSE TECk surged by 4.13% and BSE Oil & Gas rose by 2.80%. Major Losers - BSE Metal declined by 4.50%, BSE CD down by 4.32% and BSE CG fell by 3.77%.

Coming to 'A' group stocks, top three gainers of the week - Jaypee Infratech jumped by 14.07%, DLF surged by 10.43% and Educomp Solutions rose by 10.04%. Top three losers of the week - Reliance Capital tumbled by 21.5%, Sun TV Network declined by 19.75% and SKS Microfinance fell by 13.71%.

Global signals

Majority of the global indices closed the week on a positive note. The only losers - Shanghai Composite dropped by 3.04%, Nasdaq fell by 2.73% and Hang Seng lost by 0.43%. Top performers - CAC 40 rose by 6.12%, Dax 100 gained by 5.88% and Sensex advanced by 1.8%.

FII/MF activity

The foreign institutional investor ( FII) sold Indian shares to the tune of Rs1856 crore this week as compared to the net sell of Rs132 crore seen in the previous week. The domestic investors bought Indian shares worth a net of Rs75 crore this week as compared to net sell of Rs4 crore seen in the previous week.

Outlook

Next week is a truncated trading week as financial markets will be closed on Thursday (October 06, 2011) on account of Dassera. Auto and cement shares will be in focus next week as companies declare auto sales and cement dispatches numbers for September 2011.

The HSBC purchasing manager index (PMI) data for the month of September will also be released. Outlook remains circumspect, as investors seem to be still worried over the implementation of bailout package approved in parliament by Germany. Europe will continue to remain in focus and final resolution to debt crisis will be awaited.