Sensex consolidates in a choppy week
Monday, 11 October 2010
MUMBAI, Oct 10 (Business Standard): Markets flip flopped through out the week and ended on a negative note. After touching 33-month high last Monday, markets pared almost all the gains and ended in red commencing the week on negative note.
This trend was seen almost through out the week as investors turned jittery and started locking profits ahead of the quarterly earnings. Sensex was unable to sustain the 221 points, gap-up opening last Wednesday which took the index to the weekly high of 20,669.95.
The index posted the first weekly loss in six weeks last Friday; the benchmark declined 1.1 per cent this week to close at 20,250.56, the Nifty also ended at 6103.45.
Mixed global cues and selling pressure in metal stocks played a spoilsport through out the week. In the beginning of the week metal stocks shined, as investors rushed to buy gold and copper as a safe haven investment on back of a weak greenback.
The yellow metal touched $1,335 an ounce on the Comex division of the New York Mercantile Exchange. Metal and resource related shares posted a sharp decline after the run-up dragging most of the regional markets down.
The BSE metal index also ended down 1.5 per cent Friday.
While investors are playing safe, Emkay in a research note said that Indian markets are not yet in a bubble territory yet as Sensex EPS (earnings per share) PE (price to earnings ratio) is at 19.3x/16.1 for 1FY/2FY (currently) versus 24.5x/20.4x 1FY/2FY seen on 10th January 2008, when markets touched all time high.
Overseas fund flows will continue to dominate the markets according to Emkay Global Financial Services, Foreign Institutional Investors have invested Rs 292 billion in the Indian equity markets, highest since January 1999, "there is buoyancy in the Indian capital markets based on FII inflow," Emkay in a research note said.
Also after the recent run-up profit booking was seen in the Auto index, the index was down 1.3 per cent Friday.
BSE mid and small-cap indices outperformed the Sensex. The indices gained 1.5 per cent and 1 per cent respectively this week. While the mid-cap index ended at 8,331, the small-cap index added 1089 points to 10,512.
The healthcare index soared 3 per cent to 6,306.
Apollo Hospital soared 17 per cent this week to Rs 531. Biocon jumped 13 per cent to Rs 412. Dr Reddy's, Orchid Chemicals and Aurobindo Pharma gained 5 per cent each.
Other gainers in the space included Cipla, Lupin and Ranbaxy. However, Glenmark and Jubilant Sciences dropped over 1.5 per cent each in trades.
Oil & gas and consumer durables indices gained 1-2 per cent each this week. Markets is awaiting PSU company Coal India's IPO which is set to open on October 18, 2010. The government plans to raise about Rs 150 billion to Rs 160 billion from divestment of 10 per cent stake in Coal India. The Coal India IPO is billed as the country's largest issue ever.
However, the FMCG index slumped 3 per cent to 3,626. Index heavyweight - Hindustan Unilever was the second biggest loser in the Sensex and dropped 4.5 per cent this week to Rs 296.
ITC shed 3.7 per cent at Rs 172. Colgate-Palmolive, Nestle and Godrej Consumer Products slipped 2-3 per cent each.
On the other hand, Tata Global Beverages gained 7.6 per cent at Rs 133. Ruchi Soya was also up 4.5 per cent at Rs 134.
Capital goods index was down 1 per cent at 16,249.
Among the Sensex stocks Reliance Communications soared 7 per cent to Rs 180. Jaiprakash Associates gained 6.5 per cent to Rs 132. Hindalco added 5 per cent to Rs 215.
Market heavyweight, Reliance added 4 per cent to Rs 1,048. Tata Power and ACC were up 1-2 per cent each.
Meanwhile, Tata Steel shed 6 per cent at Rs 627. HDFC Bank and Bharti Airtel dropped 3.8 per cent each to Rs 2,403 and Rs 351, respectively.
ONGC, Larsen & Toubro, NTPC, TCS, DLF and Tata Motors were some of the other losers in the sector.
This trend was seen almost through out the week as investors turned jittery and started locking profits ahead of the quarterly earnings. Sensex was unable to sustain the 221 points, gap-up opening last Wednesday which took the index to the weekly high of 20,669.95.
The index posted the first weekly loss in six weeks last Friday; the benchmark declined 1.1 per cent this week to close at 20,250.56, the Nifty also ended at 6103.45.
Mixed global cues and selling pressure in metal stocks played a spoilsport through out the week. In the beginning of the week metal stocks shined, as investors rushed to buy gold and copper as a safe haven investment on back of a weak greenback.
The yellow metal touched $1,335 an ounce on the Comex division of the New York Mercantile Exchange. Metal and resource related shares posted a sharp decline after the run-up dragging most of the regional markets down.
The BSE metal index also ended down 1.5 per cent Friday.
While investors are playing safe, Emkay in a research note said that Indian markets are not yet in a bubble territory yet as Sensex EPS (earnings per share) PE (price to earnings ratio) is at 19.3x/16.1 for 1FY/2FY (currently) versus 24.5x/20.4x 1FY/2FY seen on 10th January 2008, when markets touched all time high.
Overseas fund flows will continue to dominate the markets according to Emkay Global Financial Services, Foreign Institutional Investors have invested Rs 292 billion in the Indian equity markets, highest since January 1999, "there is buoyancy in the Indian capital markets based on FII inflow," Emkay in a research note said.
Also after the recent run-up profit booking was seen in the Auto index, the index was down 1.3 per cent Friday.
BSE mid and small-cap indices outperformed the Sensex. The indices gained 1.5 per cent and 1 per cent respectively this week. While the mid-cap index ended at 8,331, the small-cap index added 1089 points to 10,512.
The healthcare index soared 3 per cent to 6,306.
Apollo Hospital soared 17 per cent this week to Rs 531. Biocon jumped 13 per cent to Rs 412. Dr Reddy's, Orchid Chemicals and Aurobindo Pharma gained 5 per cent each.
Other gainers in the space included Cipla, Lupin and Ranbaxy. However, Glenmark and Jubilant Sciences dropped over 1.5 per cent each in trades.
Oil & gas and consumer durables indices gained 1-2 per cent each this week. Markets is awaiting PSU company Coal India's IPO which is set to open on October 18, 2010. The government plans to raise about Rs 150 billion to Rs 160 billion from divestment of 10 per cent stake in Coal India. The Coal India IPO is billed as the country's largest issue ever.
However, the FMCG index slumped 3 per cent to 3,626. Index heavyweight - Hindustan Unilever was the second biggest loser in the Sensex and dropped 4.5 per cent this week to Rs 296.
ITC shed 3.7 per cent at Rs 172. Colgate-Palmolive, Nestle and Godrej Consumer Products slipped 2-3 per cent each.
On the other hand, Tata Global Beverages gained 7.6 per cent at Rs 133. Ruchi Soya was also up 4.5 per cent at Rs 134.
Capital goods index was down 1 per cent at 16,249.
Among the Sensex stocks Reliance Communications soared 7 per cent to Rs 180. Jaiprakash Associates gained 6.5 per cent to Rs 132. Hindalco added 5 per cent to Rs 215.
Market heavyweight, Reliance added 4 per cent to Rs 1,048. Tata Power and ACC were up 1-2 per cent each.
Meanwhile, Tata Steel shed 6 per cent at Rs 627. HDFC Bank and Bharti Airtel dropped 3.8 per cent each to Rs 2,403 and Rs 351, respectively.
ONGC, Larsen & Toubro, NTPC, TCS, DLF and Tata Motors were some of the other losers in the sector.