Sensex entrenched in consolidation zone, loses 5.44pc in week
Sunday, 1 November 2009
BOMBAY, Oct 31 (Sify.com): Indian equities markets entered into a consolidation zone with analysts terming the downward movement as long expected. A benchmark index fell 5.44 per cent from its last weekly close and ended trade below the 16,000-mark.
The 30-share sensitive index (Sensex) ended 914.53 points, or 5.44 per cent lower, at 15,896.28 points at the weekly close Friday, as opposed to the previous week's close at 16,810.81 points.
The broader S&P CNX Nifty of the National Stock Exchange (NSE), too slipped, closing at 4,711.7 points, down 5.7 per cent from its last weekly close.
However, companies with large-to-medium market capitalisation saw greater selling with the BSE midcap index ending 7.36 per cent lower and the BSE smallcap index losing 8.01 per cent over the last week.
'This consolidation was expected anyways as the valuations were not commensurate with the earnings of corporates. To an extent a correction in valuations was warranted,' said Jagannadham Thunuguntla, equities head of brokerage and capital markets consultancy SMC Capital.
The markets started on a cautious note Monday ahead of the Reserve Bank of India's mid-year policy review Tuesday. The Sensex ended a volatile day at 16,740.50 points -- 70.31 points or 0.42 per cent lower than Friday's close.
The Nifty followed a similar trajectory and ended in negative at 4,970.9 points, down 0.52 per cent.
Both benchmark indices nosedived Tuesday as the RBI indicated in its policy review that it would start tightening the monetary policy and look at exiting the stimulus measures.
The Sensex shut shop at 16,353.4 points -- 387.1 points or 2.31 per cent lower than its previous close, and the Nifty too ended on a similar note at 4,846.7 points, down 2.5 per cent or 124.2 points.
On Wednesday, the Sensex recouped most of its losses to end trade at 16,283.49 points, down 0.43 per cent or 69.91 points. The Nifty was also in the red at 4,826.15 points, down 0.42 per cent from its last close.
The markets lost fourth straight day Thursday with the Sensex closing at 16,052.72 points, 1.42 per cent or 230.77 points lower than its previous close. The Nifty too closed in the negative at 4,750.55 points, down 1.57 per cent or 75.6 points from its last close.
The Sensex ended Friday below 16,000 points at 15,896.28 points -- 156.44 points or 0.97 per cent down, while the Nifty followed a similar path and closed lower at 4,711.7 points, down 0.82 per cent.
The top gainers this week on the Sensex were Tata Motors (up 7.2 per cent), Ranbaxy Labs (up 4.8 percent), Wipro (up 2.9 per cent), Grasim (up 1.6 per cent) and Hindustan Unilever (up 1 per cent).
The 30-share sensitive index (Sensex) ended 914.53 points, or 5.44 per cent lower, at 15,896.28 points at the weekly close Friday, as opposed to the previous week's close at 16,810.81 points.
The broader S&P CNX Nifty of the National Stock Exchange (NSE), too slipped, closing at 4,711.7 points, down 5.7 per cent from its last weekly close.
However, companies with large-to-medium market capitalisation saw greater selling with the BSE midcap index ending 7.36 per cent lower and the BSE smallcap index losing 8.01 per cent over the last week.
'This consolidation was expected anyways as the valuations were not commensurate with the earnings of corporates. To an extent a correction in valuations was warranted,' said Jagannadham Thunuguntla, equities head of brokerage and capital markets consultancy SMC Capital.
The markets started on a cautious note Monday ahead of the Reserve Bank of India's mid-year policy review Tuesday. The Sensex ended a volatile day at 16,740.50 points -- 70.31 points or 0.42 per cent lower than Friday's close.
The Nifty followed a similar trajectory and ended in negative at 4,970.9 points, down 0.52 per cent.
Both benchmark indices nosedived Tuesday as the RBI indicated in its policy review that it would start tightening the monetary policy and look at exiting the stimulus measures.
The Sensex shut shop at 16,353.4 points -- 387.1 points or 2.31 per cent lower than its previous close, and the Nifty too ended on a similar note at 4,846.7 points, down 2.5 per cent or 124.2 points.
On Wednesday, the Sensex recouped most of its losses to end trade at 16,283.49 points, down 0.43 per cent or 69.91 points. The Nifty was also in the red at 4,826.15 points, down 0.42 per cent from its last close.
The markets lost fourth straight day Thursday with the Sensex closing at 16,052.72 points, 1.42 per cent or 230.77 points lower than its previous close. The Nifty too closed in the negative at 4,750.55 points, down 1.57 per cent or 75.6 points from its last close.
The Sensex ended Friday below 16,000 points at 15,896.28 points -- 156.44 points or 0.97 per cent down, while the Nifty followed a similar path and closed lower at 4,711.7 points, down 0.82 per cent.
The top gainers this week on the Sensex were Tata Motors (up 7.2 per cent), Ranbaxy Labs (up 4.8 percent), Wipro (up 2.9 per cent), Grasim (up 1.6 per cent) and Hindustan Unilever (up 1 per cent).