Markets sink 2% in festive week on global massacre

Tumbling trend continued on the Dalal Street for second week due to panic selling among the investors on concerns of weak global and domestic cues Major Headlines of the Week: October exports slip 1.6% to $23.2 bln IIP for Sept 2012 came in at -0.4%, below market estimate Inflation for Oct at 7.45% vs 7.81% in Sept 2012 Petrol price cut by 95 paise per litre October CPI inflation at 9.75% vs 9.73% Indian Indices: The Indian markets closed a holiday-shortened festive week on a negative note. The week saw the markets trading in a tight range and struggling for direction. The markets were locked in a narrow range and were waiting for some triggers to break out of the range throughout the week. The week gone by was the forty sixth trading week of 2012, where key indices declined in all four trading sessions as weak economic data in the domestic markets also dampened the sentiments. A Special muhurat trading was held on November 13, 2012, to mark the beginning of the new Samavat Year 2069. The markets remained closed on Wednesday, November 14, 2012, on account of Diwali holiday. The BSE Mid-Cap index fell 0.04%. The BSE Small Cap index rose 0.58% for the week. The BSE Sensex fell 374.31 points or 2% to 18,309.37 in the week ended November 16, 2012 while the NSE Nifty fell 112.20 points or 1.97% to settle at 5,574.05 for the week ended November 16, 2012. Major events of this week: 1. The Index of Industrial Production (IIP) for September 2012 came in at -0.4% versus 2.3% (revised from 2.7%) seen in August 2012, which was below market estimates. 2. India's annual consumer price inflation rose in October to 9.75% versus 9.73%, government data showed on Monday (November 12, 2012). 3. According to a statement released by Ministry of Commerce and Industry on November 12, 2012, India's exports dipped by 1.6% to $23.2 billion in October. Imports rose by 7.37% to $44.2 billion, leaving a trade deficit of $20.9 billion. The trade deficit came in at $110.2 billion during the first seven months of the financial year. 4. The inflation for the month of October 2012 came in at 7.45% as compared to 7.81% seen in the previous month. 5. Petrol prices were reduced by 95 paise per litre. This is the second reduction in rates since October. The reduction is on account of fall in global oil prices. Weekly market trend from November 12 - November 16, 2012: 1. On November 12, 2012, the equities were highly volatile throughout the day and closed the trading session in the red zone. The Indian markets fell, after data released by the government showed that the industrial production declined in September 2012 while, consumer price inflation inched up and trade deficit widened in October 2012. The Sensex closed at 18670.34, down by 13.34 points while the Nifty was down by 2.55 points to close at 5,683.70. 2. On November 13, 2012, the key indices traded lower on Muhurat trading day, the beginning of the new Samavat Year 2069. Trading started at 3.45 pm and ended at 5.00 pm. There was no normal trading session that day on account of Diwali. The Sensex lost 51.47 points settle at to 18,618.87 while the Nifty was down by 16.75 points to settle at 5,666.95. 3. The markets remained closed on Wednesday, November 14, 2012, on account of Diwali holiday. 4. On November 15, 2012, the Indian markets remained in a bear grip due to worries over the US fiscal cliff and upsurge of violence in the Middle East. The Sensex closed at 18471.37, down by 147.50 points and the Nifty fell 35.95 points to close at 5631.00. 5. On November 16, 2012, the key benchmark indices declined due to profit booking in majority of the sectors and weak trend across Asian and European markets also dampened the sentiments on the Indian bourses. The Sensex and the Nifty dipped nearly 1% each. The Sensex closed at 18309.37, down by 162 points and the Nifty fell by 56.95 points to close at 5574.85. Global indices: All the global markets closed on a negative note baring Nikkei which rose by 3.04%. Top Losers: DAX100 down by 2.97%, FTSE100 fell by 2.84%, Shanghai Composite declined by 2.63%, CAC40 slipped by 2.40%, Nasdaq dipped by 1.78%, Dow Jones down by 1.77% and Hang Seng fell by 1.05%. Sectoral and stock screening: Among 13 sectoral indices, 11 closed the week on a negative note and remaining 2 closed in positive note. Top Gainers: BSE Bankex up 1.49% BSE CD rose 0.21%. The top gainers were BSE CG down by 2.97%, BSE Metal fell by 2.71% and BSE Oil & Gas surged by 2.15%. Looking at the 'A' group stocks, the top three gainers of the week were United Spirits which was up by 31.76%, L&T Finance Holdings up 30.14% and Muthoot Finance up by 12.08%. The top three losers of the week were Opto Circuits India down by 8.35%, Pantaloon Retail down by 7.02% and Hexaware Technologies down by 6.75%. FII/MF activity: The foreign institutional investors ( FIIs) were the net buyers of the Indian stocks worth a net of Rs475 crore during the week till November 15, 2012, while the domestic investors were also net buyers of Indian stocks to the tune of Rs17.7 crore during the week till November 13, 2012. Market Outlook: In the coming week, markets will follow the upcoming winter session of the parliament in India and fiscal-cliff negotiations in the US which will dictate trend on bourses in the near term. The winter session of the parliament begins on Thursday, November 22, 2012. Finance Minister P. Chidambaram on Friday, November 16, 2012, said that the winter session will have a heavy legislative agenda. Siemens will announce its second quarter results of the year on Friday, November 23, 2012. On the global front, investors are worried about the possibility of the so-called 'fiscal cliff' in US, if the US Congress fails to act. The fiscal cliff refers to the year-end deadline for the expiration of hundreds of billions of dollars worth of tax cuts and the triggering of $109 billion in across-the-board spending cuts. In Europe, an extraordinary meeting of euro-zone finance ministers is scheduled to be held on Tuesday, November 20, 2012.