Even though the markets started the week in a buoyant mood but could not hold on to the gains and remained flat during the week. Compared with the previous week,the BSE benchmark index,Sensex,ended the week at 17,574.53,up 0.02 per cent compared with its closing the previous week. The markets failed to hold on to the gains on the back of weak global cues as the Dow Jones Industrial average fell on the back of weak housing data in the US. Existing home sales were down by 2.2 per cent,month on month,to an annualised rate of 5.66 million,lower than market expectations of 6.2 million, said Jyoti Roy,Equity Research Analyst,Fullerton Securities and Wealth Advisors.
Consumer durables,oil and gas and healthcare indices were the top performers during the week. These indices registered positive gains and were up by 3.03 per cent,3.02 per cent and 2.97 per cent respectively. The oil and gas index was up sharply on Friday on the back of partial deregulation of oil prices by the government. In this space,the oil marketing companies were up sharply with BPCL and HPCL leading with gains at 19.2 per cent and 18.2 per cent respectively. Indian Oil was also up by 7.4 per cent for the week,while Essar Oil was jumped 10.4 per cent, added Roy.
IT,banking and technology were the worst performing sectors during the week as they shed 1.43 per cent and 1.17 per cent and 0.78 per cent respectively. Currently equity markets are in a consolidation mode with a positive bias and are expected to stay within the broad range of 5400-4700 in the near future. However,volatility is likely to increase due to conflicting global macro signals. Indian equity markets have outperformed global indices over the past month and can be expected to touch a new 52 week high in the near future if global macro economic conditions are supportive. However any sharp fall in global indices would put pressure on Indian equity markets, said Roy.
The rupee started the week on a firm note but could not hold on to the gains and closed at Rs 46.54, down 0.9 per cent compared with last weeks closing at Rs. 46.14. The rupee weakness was surprising given the strong FII flows during the week. FIIs were net buyers in Indian equities throughout the week at nearly $1.1 billion, said Roy.