Weekly Roundup of Indian Markets

Courtesy : Money control

The benchmark indices closed the week on a positive note led by banking and capital goods stocks. The broader indices also followed a similar trend. The Sensex ended 2% higher at 11,023.09 and the Nifty went up 1.26%, to 3384.40 this week.

Among broader indices, CNX Midcap Index was up 4.7%. The BSE Small cap and Nifty Junior index gained 4.5% each.

Among front liners, Unitech surged up 25% as the company board approved raising of Rs 5,000 crore via QIP issue. Reliance Capital rose 12% and Sun Pharma went up 7%. However, Nalco lost 8%. Hindalco and Cairn India fell 6% each. Tata Communication slipped 5%.

On the sectoral front, BSE Bank Index shot up 9.5%. SBI was up 15% followed by Axis Bank and ICICI Bank, which were up 13.5% and 10.5%, respectively.BSE Capital Goods Index jumped up 6.5%, as ABB was up 12.5% and BHEL gained 10.5%. L&T went up 4.5%.

In the mid cap space, Indian Bank, Bajaj Hindusthan and Lanco Infratech surged 25% each. HDIL was up 12%. However, Aptech and Great Offshore fell 10%. Titan lost 9% and Jet Airways declined 8%.

Among small cap stocks, CMC shot up 45% and Core Projects surged 42%. Arvind was up 37% and Rolta gained 34%.

In the last few days different sectors have been leading like metals, real estate, sugar, and infrastructure. But today it is banks which have come back in a big way and lead the rally. Today, was supposed to be a day of mildly positive consolidation but the market recovered at least most of the losses of yesterday. 

Commenting on the week gone by, Rajesh Jain of Pranav Securities said we have seen a substantial reduction of risk aversion, which was seen rampant through 2008 and even in early 2009. "There is a fair amount of appetite and risk taking being witnessed across all segments of investors at this point. Particularly among the organised portfolio managers and fund managers, there is a deep sense of perhaps having missed the bus and having been left out." 

Adrian Lim, Investment Manager - Asian Equities, Aberdeen Asset Management, said the recovery in the market is positive for sentiment. However, he was quick to add that it is not the end of negative news flow yet. According to Lim, the market bottom may be in place but volatility may continue. The up move, he added, looks unsustainable and one may see corrections soon. 

Amit Dalal of Amit Nalin Securities thinks it is a perfect market, which went up. "It’s good to see the volatility that we are seeing today. There is  going to be profit taking.”  He sees volatility continuing going forward. “This is very typical of a market, which will not reward risk at higher levels. This volatility will perhaps continue till the end of the rally — which will be perhaps 10% higher than where we are today — so I do see potential in this rally to go up further but definitely this volatility will continue.”