Volatile week

While all 13 indices on the BSE ended in the red,IT was the worst hit space with the top three losers in the Sensex pack on Friday belonging to this sector. Experts believe that this is not a cause for concern.

The major indices have moved really fast,while the mid-caps have more moved too much. So we should really look at individual stocks. The rupee is appreciating which is not very good for the IT sector,especially for mid-cap companies which are not very prudent and are comfortable at a level of Rs 44.5 to a dollar. IT stocks could go down further if the rupee appreciates more. The weak IIP data was expected. The moderation is because of the high base effect and also because of slower pace of activities during monsoons. With the festival season coming up,we expect an upside in consumer durables.

The markets are expected to be range bound till February next year with gains or losses of 10-15 per cent. Both benchmark indices are likely to consolidate at the current levels with risks of 15 per cent.