Friday’s gaining trend works for 4th week; Mkts wrap week in green

The Indian markets witnessed an action packed trading session for the fourth consecutive week with the Sensex rising 0.05% and the Nifty up by 0.21% for the week ended September 28, 2012. Major Headlines of the Week: S&P cuts India growth forecast to 5.5% Inflows of $2 bn/yr eyed after cut in overseas borrowing tax FDI up 60% to $1.76 bn in July Domestic pharmaceuticals market up 16.9% during August Core sector growth slows to 2.1% in Aug 2012 3rd downgrade in a row; Fitch cuts India growth forecast to 6% Indian indices: The Indian markets wrapped up the week ended September 28, 2012 in green for the fourth straight week. The Indian markets ended the 39th trading session of 2012 with the BSE Sensex rising 0.05% and the NSE Nifty up by 0.21%. Volatility ruled the markets this week on account of global woes both in local and overseas indices. In the week gone by, markets witnessed buying across the board. The markets registered gains in three out of the five trading sessions. Most of the gains were recorded in the last trading session on Friday (September 28, 2012), when the market rose on the back of a global rally that was triggered by Spain announcing a crisis budget for 2013 on Thursday, (September 27, 2012). The BSE Sensex rose 9.91 points or 0.05% to 18,762.74. The NSE Nifty rose 12.15 points or 0.21% to settle at 5,703.30. The BSE Mid-Cap index rose 2.72% and the BSE Small Cap index rose 3.06%. Both these indices outperformed the Sensex. Weekly market trend from September 24 - September 28, 2012: 1.Trading for the week began on a negative note. Key benchmark indices declined on September 24, 2012, as persistent selling pressure in majority of the sectors and profit booking in index heavyweights weighed on the market sentiments. The Sensex shed 79.49 points to close at 18,673.34 while Nifty slipped 21.55 points to end 5,669.60. 2. On September 25, 2012, the Indian markets ended with modest gains with no major action on the D street owing to profit booking and selling pressure backed by subdued global cues. The overall market breadth stood positive. The Sensex ended at 18694.41, up by 21.07 points, while the Nifty shut shop at 5673.90, up by 4.30 points. 3. On September 26, 2012, the BSE Sensex fell 0.33% and the NSE Nifty dipped 0.18%. Profit booking led the markets to close the session lower. Investors were cautious ahead of F&O expiry day. The Sensex closed at 18,632.17, down by 62.24 points and the Nifty fell by 10.45 points to settle at 5,663.45. 4. On September 27, 2012, Indian shares fell in a session marked by volatility due to the expiry of September futures and options contracts, led by a fall in technology stocks such as Infosys on worries about demand outlook and rally in the rupee. The Sensex shed 52.67 points to close at 18,579.50 while Nifty slipped 13.95 points to settle at 5,649.50. 5. On September 28, 2012, the key indices marked its highest close since July 7, 2011, sparked by optimism that economic reforms and budget plans unveiled by Spain will help manage its debt imbalances. The BSE Sensex ended at 18,762.74 up 183.24 points and the NSE Nifty ended at 5,703.30 up 53.80 points. Global indices: All the global markets closed mixed this week. Top gainers: Shanghai Composite rose by 2.93% and Hang Seng up by 0.51%. On the other side, top losers were Nikkei, which was down by 2.63%, CAC40 fell 2.59% and Dax100 slipped 2.70%. Sectoral and stock screening: Among the 13 sectoral indices, eight sectors closed the week on a positive note while remaining five sectors closed in the red zone. The topmost gainers were – CD rose by 4.77%, FMCG was up by 4.00% and Realty advanced by 3.91%. Top Losers: Oil&Gas fell by 2.17%, Metal slipped by 1.41%, IT was down by 1.01% Looking at the 'A' group stocks, the top three gainers of the week were United Spirits was up 22.53%, Gujarat Gas Company rose 17.31% and Pantaloon Retail rose 16.79% each. The top three losers of the week were SAIL fell by 7.67%, Cairn India slipped by 5.57% and Bharti Airtel was down by 5.11%. FII/MF activity: The foreign institutional investors (FIIs) have been the net buyers Indian stocks to the tune of Rs6207.9 crore till September 25, 2012. The domestic investors sold Indian shares worth a net of Rs258.4 crore on September 25, 2012. Market Outlook: The market will remain volatile next week as the investors may continue to book profits after a recent run up in share prices. Automobile and cement stocks will be in focus as companies from these two sector start unveiling monthly sales volume data for September 2012 from Monday, (October 01, 2012). Shares of aviation firms will also be in focus as state-run oil marketing companies (PSU OMCs) will undertake periodical review prices of jet fuel or aviation turbine fuel (ATF) on Monday, (October 01, 2012). The stock market will remain closed on Tuesday, (October 02, 2012), on account of Mahatma Gandhi Jayanti. On Thursday, (October 04, 2012), Market Economics will release HSBC India Services PMI and HSBC India Composite PMI for September 2012. The HSBC India Services PMI had risen to a six-month high of 55 in August 2012 from 54.2 in July 2012. From the global front, the Hong Kong stock market is closed on Monday, (October 01, 2012) and Tuesday, (October 02, 2012), while mainland Chinese markets are shut the whole of next week for the Golden Holiday week running from September 30 to October 07, 2012.