Facebook Pixel Code

Sensex posts weekly decline of 307 points

After starting the month on a positive note, the rally in the Indian stock market fizzled out this week, with benchmark indices declining nearly 2% in a lacklustre and narrow-range trade.

All eyes on earnings from major firms like RIL, Hero

After starting the month on a positive note, the rally in the Indian stock market fizzled out this week, with benchmark indices declining nearly 2% in a lacklustre and narrow-range trade. The week, in which the first quarter earnings season kicked off, saw technology and metal pack suffer following a disappointing set of numbers from software services major Infosys and looming economic worries in the eurozone and China.

During the week, the 30-share Sensex declined 307.42 points, or 1.8%, to end the week at 17,213.70. The broader 50-share Nifty lost 89.70 points, or 1.7% to end at 5,227.25. The mid-cap index also fell 1%, but it outplayed the benchmarks as several of the mid-cap stocks witnessed sharp gains this week.

Experts said even the better-than-expected May industrial production data failed to lift the mood as the Street remained more focused on Infosys and Tata Consultancy Services’ first quarter results. The Index of Industrial Production (IIP) grew 2.4% in May compared with a 0.9% contraction in April.

The coming week will see some big companies announce their numbers ? Reliance Industries, Bajaj Auto, Hero Motocorp, Bajaj Holdings, Kotak Mahindra, Axis Bank, Dr Reddy?s, Tata Coffee and Crisil, among others.

Investors are also eyeing June inflation numbers closely. Analysts expect inflation to be in the range of 7.4-7.7% against 7.55% in May. Core inflation is likely to be 4.8-5.6% compared with 4.8% in the previous month.

?Looking ahead, inflation data for June, quarterly results and monsoon will hold the market’s attention over the next two weeks. The presidential elections will be over soon and expectations are that the government will move ahead with reforms. The actions of the government will likely have a bearing on the RBI rate decision towards the end of the month. We maintain that reforms are a prerequisite for markets to move up,? said Dipen Shah, head of fundamental research, Kotak Securities.

Much will depend on liquidity flows also as FIIs have increased the quantum of flows in the recent past ever since it has emerged that the government is willing to review the controversial General Anti Avoidance Rule (GAAR). In the last one week, FIIs has invested $326 million in Indian equities.

Get live Share Market updates, Stock Market Quotes, and the latest India News and business news on Financial Express. Download the Financial Express App for the latest finance news.

First published on: 14-07-2012 at 03:44 IST
Market Data
Market Data
Today’s Most Popular Stories ×