Sensex dips after five-week rally (Weekly Market Review)

MUMBAI - The benchmark index for Indian stock markets fell for the first time in five weeks with domestic investors booking profits, although foreign funds continued to invest in equities in substantial amounts.

The Bombay Stock Exchange’s 30-share sensitive index (Sensex) dipped 0.95 percent or 194.78 points to end the week at 20,250.26 points.

At the National Stock Exchange (NSE), the 50-share S&P CNX Nifty slipped 0.65 percent during the week to close Friday at 6,103.45 points.

Overseas funds invested $1.98 billion during the week ending Friday, according to data available with the Securities and Exchange Board of India (SEBI). For the month, funds from foreign institutional investors have already crossed the $3 billion-mark.

Broader markets, however, performed better with the focus shifting from the heavy weight stocks to lesser valued scrips. The BSE midcap index moved up 1.42 percent, while the BSE smallcap index rose 1.05 percent.

“There was a slight hiccup this week, but with so much liquidity around and FII inflows continuing unabated, this rally will go on for some more time,” said Jagannadham Thunuguntla, equity strategist, SMC Global Securities Limited.

“Previous highs will be surpassed sooner than later. There might be a sort of psychological stoppage just before we get there,” added Thunuguntla.

Among top weekly gainers on the Sensex were Hindalco, up 8.9 percent at Rs.214.50; Jaiprakash Associates, up 8.2 percent at Rs.131.95; Reliance Communications, up 7.1 percent at Rs.180.40; Reliance Industries, up 5.7 percent at Rs.1,048.25; and Tata Power, up 4.5 percent at Rs.1,422.70.

Top losers included Tata Steel, down 4.9 percent at Rs.626.95; Bharti Airtel, down 4 percent at Rs.351.35; ITC, down 3.9 percent at Rs.172.05; ONGC, down 3.8 percent at Rs.1,362.15; and Hindustan Unilever, down 3.4 percent at Rs.295.85.

Global markets, however, rose during the week with the Japanese Central Bank bringing down interest rates to zero and other central banks around the globe expected to take a lenient stance on lending rates to support a still-fragile economic recovery.

Among the other Asian markets, Japan’s Nikkei moved up 1.96 percent to close at 9,588.88 points.

The Chinese Shanghai Composite index ended the week 3.16 percent higher at 2,738.74, while Hong Kong’s Hang Seng closed 2.62 percent up at 22,944.18 points.

European bourses too closed Friday, managing moderate weekly gains.

FTSE 100 closed 1.16 percent higher at 5,657.61, while the German DAX rose 1.29 percent at 6,291.67. The French CAC 40 moved up 1.92 percent to close at 3,763.18 points.

The US markets closed higher with signs of the corporate earnings season being a robust one.

The Dow Jones Industrial average rose 1.63 percent to close at 11,006.48 points, while the S&P 500 gained 1.65 percent at 1,165.15 points.

The Nasdaq Composite rose 1.31 percent to 2,401.91 points, helped by strong buying interest in big technology firms like Apple.