The Hindu Business Line : Weekly Market Round-up

The markets opened strong on Monday, taking positive cues from its global peers. It tapered off later in the week to a range-bound trade, surrendering the gains it made on the first day.

The Sensex opened on Monday at 16,611.41 points and ended the week on Friday at 17,125.98.

The net gain was 386.65.

The surprise major gainers were bank stocks, shrugging off the CRR impact.

Being the end of F&O close this week, volatility was to the fore.

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Speculators lost heavily in Orchid Chemicals counter when the open offer hopes receded. The stock has witnessed heavy selling presssure.

The Stock Lending and Borrowing Scheme, which started on Monday, received a lukewarm response.

When Infosys came out with better results, investors expected some good show from its peer TCS.

But the company's performance which was below than expected, made this stock to go into a tail-spin, registering its biggest one-day drop.

The share lost Rs 105.50 from its previous close to end the day at Rs. 887.07.

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After a sharp run-up on result expectations, Reliance Industries fell 1.3 per cent to Rs 2,607.45 on profit-taking.

There were no surprises in earnings and that is why the market is not reacting to it positively, say analysts.

With good numbers from Ultra Tech cement, some fair amount of buying emerged in cement stocks.

Motilal Oswal numbers defied the gloomy outlook for broking stocks, but analysts were cautious on other broking stocks.

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The SBI Chairman, Mr O.P. Bhatt, said the losses suffered by the corporate clients of State Bank of India on account of currency derivatives could range between Rs 600 crore and Rs 700 crore in the just ended fiscal.

SBI will make a provision of $10 million (approximately Rs 40 crore) on its marked-to-market losses on account of exposure to subprime paper in its overseas operations, he said.

This made banking stocks lose their ground on Wednesday.

The BSE Bankex slipped 164.46 points or 1.89 per cent.

* * *

Fresh buying interest emerged in realty counters on the BSE, shrugging off the gloom of a possible price correction and slowdown in the real estate segment.

Shares of most real estate majors were up close to 10 per cent over the week.

Compiled by B.L Sudarsan

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