Bears play havoc; Markets post 5% weekly loss

Concerns about the European debt crisis continued to plague investors and rupee falling to its lowest price since March 2009 dragged markets lower by 5% on weekly basis

Major headlines for the week

Inflation at 9.73% in October versus 9.72% in September

Govt raises investment limit in G-secs, bonds

FM approves changes in Food Bill

SEBI considers circuit filter on listing days

Govt mulls FDI in retail sector

Pipavav Defence, Parsvnath hit 20% lower circuit

Suzlon Energy hits 52-week low as promoters sell stake

Rupee falls past 51/USD, worst hit among major Asian currencies

SEBI vs NSDL case: SAT defers hearing to Dec 14

Petrol prices slashed by Rs1.85 per litre



Indian indices

Markets were down in all the five trading sessions of the week. There was no respite for investors and market watchers this week on concern that Europe’s debt crisis is deepening and its impact on the global economy. The rising yields of countries like Italy and Spain and increasing the contagion threat to US banks led to panic selling across the globe.

Apart from eurozone jitters, falling rupee to its lowest price since March 2009 resulted outflow of foreign money, was the main concern for the market. Weak corporate earnings also spoilt investor mood. Fear gripped the markets this week, with the Sensex and the Nifty posting its biggest weekly fall in nearly three and a half months.

The Sensex swung 995 points between a weekly high of 17392 and a low of 16397 and closed the week lower by 977 points or 4.78% to 16372. The Nifty swung 391 points between a weekly high of 5229 and a low of 4838 and closed the week lower by 312 points or 5.09% to 4906.

Sectoral and stock screening

All the 13 sectoral indices closed the week with heavy losses. BSE Realty was the weak performer of the week, down by 11.19%, followed by BSE CG down by 9.99% and BSE Power down by 9.59%. Remaining ten slipped in the range of 2.07-7.43%.

Coming to 'A' group stocks, top three gainers of the week – Pantaloon Retail jumped by 15.67%, Cipla surged by 9.42% and Idea Cellular advanced by 4.16%. Top three losers of the week – Pipavav Defence & Offshore Engineering Company tumbled by 34.44%, Shree Renuka Sugars slipped by 32.21% and Suzlon Energy fell by 31.51%.

FII/MF activity

The foreign institutional investors (FIIs) were the net sellers of Indian stocks this week to the tune of Rs571 crore. The domestic investors bought Indian shares worth a net of Rs81 crore as on November 17, 2011.

Global indices

All the global indices were lower this week on the back of ongoing euro crisis and growth issues. Biggest losers — CAC 40 down by 4.84%, Sensex down by 4.78%, Dax 100 down by 4.28%, Nasdaq down by 3.97% and Hang Seng down by 3.75%.

Outlook

The markets may remain volatile owing to F&O expiry on Thursday (November 24, 2011). Aviation shares may be eyed on reports that the Union Cabinet will soon again discuss a proposal to permit foreign carriers to buy stakes in local airlines, a step that will help Indian carriers raise money. IT firms may also hog the limelight due to weakening rupee. On the global front, the European region is still struggling to find a solution to the debt crisis in view of the fiscal and monetary limitations and may continue to impact sentiments.