Markets fall 2% after 2-weeks of marginal gains

The Indian markets broke its two week gaining trend and ended the week with losses. The Sensex shut shop falling 2.24% and the Nifty dropped 2.17%.
Major news for the week:
IGL gets Rs1K cr hit from regulator
RIL falls after kotak cuts its price target
KFA pays 2nd installment to IT dept
Jhunjhunwala ups stake in Viceroy Hotels
Feb IIP at 4.1% vs 6.8% in Jan
Disappointing FY13 guidance drags Infosys



Indian indices:
The Indian markets were volatile throughout the week. The fall in India's industrial growth ( IIP), weak global markets and news of earthquake in Indonesia that triggered tsunami fears in the Asian region including India dampened investor sentiment.
Markets broke its 2-week marginal rise and ended with losses for the week ended April 13, 2012. Markets fell in three out of five trading sessions for the week. The BSE Mid-Cap index slipped 2.10% and the BSE Small-Cap index declined 0.67%. Both these indices outperformed the Sensex.
Domestic events like IIP for February 2012 came in at 4.1% as compared to 6.8% seen in January 2012, which was below the
expectations.
Reserve Bank of India (RBI) is expected to cut the key policy rate at its monetary policy review early next week (April 17, 2012) to spur economic growth.
From the currency point of view, Indian rupee closed the week higher due to strong dollar demand from domestic oil refiners and choppy domestic stock market.
From the earnings point of view, the major disappointment this week was Infosys numbers, which failed to cheer investors due to the company's weak guidance which resulted in downfall of major IT stocks like TCS fell 9.23%, Wipro slipped 4.91%.
On the stocks front, Indraprastha Gas Ltd (IGL) dipped after the company received Rs1,000 crore hit from the regulator.
The major contributor to the Sensex this week was Reliance Industries, which surged after the company said gas output is normal at its KG D6 block off the east coast. RIL is seen reporting weak Q4 earnings due to fall in refining margins and reduced output from its KG-D6 gas blocks.
The Sensex fell 392 points (2.24%) to 17,094.51 in the week ended Friday and the Nifty slipped 115 points (2.17%) to 5207.45.
Global indices:
All the global markets closed in negative zone except Shanghai Comp up by 2.28% and Hang Seng up by 0.52%. The topmost losers were CAC 40 which fell 1.51%, Nasdaq declined 0.81% and Dow Jones dropped 0.56%. Other losers stood in the range of 0.52% to 0.23%.
Sectoral and stock screening:
Among 13 sectoral indices, 10 closed the week on a negative note. The three gainers were BSE FMCG which gained 3.60%, BSE HC up 1.89% and BSE Auto up 0.91%. The topmost three losers were BSE IT which slipped 11.50%, BSE TECk down 9.56% and BSE CG lost 4.43%.
Looking at the 'A' group stocks, the top three gainers of the week were Max India which was up 10.11%, Emami up 6.41% and Hindustan Unilever up by 6.14%. The top three losers of the week were Indraprastha Gas which was down 39.57%, Gujarat Gas Company down 18.87% and Infosys down 15.69%.
FII/MF activity:
The foreign institutional investors (FIIs) have been net sellers of the Indian stocks worth a net of Rs1479.40 crore, while the domestic investors were also net sellers of Indian stocks to the tune of Rs344.90 crore during the week till April 12, 2012
Outlook:
The Indian markets may continue to remain highly volatile next week carrying forward this week's volatile movements.
On the stocks front, Aviation stocks like SpiceJet, Kingfisher Airlines and Jet Airways will be in focus as the Union Cabinet is likely to meet next week to consider the proposal to let foreign airlines buy stake in local carriers.
The major event next week is the Reserve Bank of India's (RBI) monetary policy review on Tuesday, 17 April 2012. After raising interest rates 13 times since early 2010, the central bank indicated in December its next move would be a reduction. Since January 2012, RBI slashed the cash reserve ratio (CRR) - the percentage of deposits that commercial banks must keep with central bank - by a combined 125 basis points, but has left rates on hold.
The next major trigger for the market is Q4 March 2012 earnings and monthly inflation.