Markets close week 4% lower

Domestic and global woes weighed on the sentiments this week. The Sensex fell 3.76% and the Nifty dropped 3.63%.

Headlines for the week

India’s services sector rebounds in November

Food Inflation at 6.6% versus 8%

2G scam: Court to decide on Swamy's plea against Chidambaram

Domestic sales of cars up by 7%, bikes by 22.67% in November

FM says FDI in retail suspended to avoid mid-term polls

FY12 growth seen at 7.5%: FM report



Indian indices

Indian markets closed a holiday-shortened week with heavy losses after posting 7% gain last week. Investors booked profits across the board on the back of domestic and global woes.

Back home, demand of BJP led opposition parties for resignation of Home Minister P Chidambaram on his alleged role in 2G spectrum case worried investors. Further, the government cut its economic growth forecast to 7.25%-7.75% from the previous 8% for the current year through March 2012 added to the market woes. Depreciating rupee was another cause of concern.

Doubts about domestic policy reforms and a resolution to the ongoing euro zone debt crisis kept investors jittery.

The Sensex swung 861 points between a weekly high of 17004 and a low of 16142 and closed the week 633 points or 3.76% lower at 16213. The Nifty swung 258 points between a weekly high of 5099 and a low of 4842 and closed the week 183 points or 3.63% lower at 4867.

Global indices

All the global indices closed the week lower. The Sensex was the worst performer of the week falling by 3.76%, followed by DAX100 down by 2.96%, Hang Seng declined by 2.39%, CAC40 down by 2.19% and Nikkei slipped by 1.24%.

Sectoral and stock screening

All the sectors closed the week in the red zone barring BSE IT up by 0.11%. The major losers — BSE CG down by 5.42%, BSE Realty fell by 4.81% and BSE Oil & Gas down by 4.62%.

Coming to 'A' group stocks, top three gainers of the week - United Breweries gained by 15.43%, Indiabulls Financial Services jumped by 9.35% and Pipavav Defence & Offshore Engineering Company surged by 5.91%. Top three losers of the week - Indiabulls Real Estate tumbled by 18.87%, Pantaloon Retail (India) fell by 15.08% and Shree Renuka Sugars declined by 13.05%.

FII/MF activity

The foreign institutional investors (FIIs) were the net buyers of the Indian stocks this week to the tune of Rs1199 crore. The domestic investors bought Indian shares worth a net of Rs85 crore on December 05, 2011.

Outlook

Markets will react to a slew of data in the upcoming week and may remain volatile. On Monday (December 12, 2011), index of industrial production (IIP) data for October 2011 and on Wednesday (December 14, 2011) inflation for November 2011 will provide cues on the central bank's likely policy stance at its mid-quarter monetary policy review on Friday (December 16, 2011). The third advance tax installment is due on Thursday (December 15, 2011), which may provide cues on third quarter corporate earnings.