Markets close week with 2% loss

Domestic as well as global factors dampened the sentiment, with the markets falling for the second straight week. The Sensex closed week 2.11% lower and the Nifty down by 2.18%

Major news for the week

India's October car sales fall the most in more than a decade

Moody's cuts India banking outlook

September IIP at 1.9% versus 4.1% in August

Food inflation at 11.81% versus 12.21%

SBI Q2 consolidated net profit at Rs3470.43 crore

SKS tumbles on huge loss in Q2



Indian indices

The Indian markets closed a short trading week in the red zone. Domestic as well as global factors dampened the sentiment this week. Markets reacted to the headlines from Europe and worries over Italy and Greece kept investors jittery. Weak rupee and rising crude oil prices also added to the concerns.

Further, deterioration in asset quality is the most worried part for banks, which forced the international rating agency Moody's to put negative outlook in the Indian banking system. A drastic fall was seen in the banking stocks on Moody’s downgrade and after SBI’s results over asset quality concerns. Weaker-than expected IIP data for September at 1.9% disappointed the Street coupled with poor earnings from major companies.

The Sensex swung 562 points between a weekly high of 17658 and a low of 17097 and closed the week lower by 370 points or 2.11% at 17193. The Nifty swung 175 points between a weekly high of 5318 and a low of 5142 and closed the week lower by 115 points or 2.18% at 5169.

Global indices

All the global indices closed the week in the negative zone. Hang Seng down by 3.56%, Nikkei down by 3.26%, Nasdaq down by 2.27%, Sensex down by 2.11%, CAC40 down by 1.88%, Shanghai Comp down by 1.87%, Dax100 down by 1.65%, FTSE100 down by 1.49% and Dow Jones down by 0.75%.

Sectoral and stock screening

All the sectors were in the red this week barring BSE FMCG up by 1.21%. The major losers were -- BSE Realty dipped by 5.98%, BSE Bankex slipped by 5.44%, BSE Metal dropped by 4.84%, BSE CG slid by 3.56%, BSE PSU fell by 3.34% and BSE Power down by 2.37%.

Coming to 'A' group stocks, top three gainers of the week – Manappuram Finance advanced by 8.22%, Apollo Tyres jumped by 7.39% and Glenmark Pharmaceuticals gained by 7.26%. Top three losers of the week – Aurobindo Pharma fell by 13.24%, Motherson Sumi Systems slid by 11.44% and Pantaloon Retail down by 11.03%.

FII/MF activity

The foreign institutional investors (FIIs) bought Indian shares to the tune of Rs1141 crore and the domestic investors sold Indian shares worth a net of Rs223 crore this week.

Outlook

Markets will focus on inflation data for October on Monday (November 14, 2011). Nervous investors will continue to look for political events in Europe, especially in debt-burdened Greece and Italy. The earnings season is drawing to a close and stock specific action will be seen next week as select firms are yet to announce their earnings.