The Hindu Business Line : Weekly Market Round-up

The Sensex continued its losing streak Monday on global weakness and opened down by 172 points at 16,468. Selling was seen across the board on concern over crude oil price, further rise in inflation and hardening interest rates outlook. Sensex closed the day with a loss of 202 points to finish at 16348.

IT stocks bucked the trend as a rising US dollar is expected to help companies beat their profit forecast for the April-June quarter.

Concerns over a slowdown in the vehicles markets and steadily climbing fuel prices led to a slump in price of Bajaj Auto when it re-listed after a gap of two and a half months. The stock fell 32 per cent from its opening price of Rs 898 to close at 604.75.

Pharma stocks found investors' fancy and did well during the bearish phase. While the BSE Sensex declined 4.54 per cent during the last one month, the BSE Healthcare was up 0.60 per cent in the same period.

Fertiliser stocks got a boost on Tuesday after the Union Chemicals and Fertiliser Minister, Mr Ram Vilas Paswan, announced that the Subsidy Bill may increase this fiscal. Taking a cue from this, fertiliser stocks made some decent gains.

Sensex on Wednesday snapped a five-day long falling streak, and gained nearly 250 points on buying primarily in metal and banking stocks, coupled with heavy short-covering. After losing nearly 1,160 points in last five straight sessions, the Sensex bounced back to record a gain of 249.78 points to finish at 16,525.37.

Gujarat based cement stocks were star performers, helped by the decision to lift ban on cement exports through Gujarat ports. State-based cement cos such as Gujarat Ambuja, Binani Industries, Ultratech, Sanghi Cement and Gujarat Siddhee attracted investor interest.

Tata Steel jumped 4 per cent to Rs 903.35 on Wednesday, accompanied by a surge in volumes owing to the price hike initiated by Corus, now under Tata Steel.

On Thursday, bonus announcement in the ratio of 1:1 set the L&T stock on fire. Amid furious selling pressure in the late hours of the market, the stock gained Rs 180 or 6.64 per cent to close the day at Rs 2890.

To wrap-up the week, inflation climbing to 8.1 per cent , the government biding its time to decide on oil price hike, FIIs' selling spree and UPA's poll defeat in Karnataka pulled the markets down and the Sensex cumulatively lost nearly 200 points to finish the week at 16348.

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