Lower-than-expected corporate results, weak global sentiment and profit-booking pulled down India's benchmark stock indices by over 2.4 per cent during the week (between July 25 and August 1). The Nifty opened the week at 7,792.90, touched a high of 7,799.90 the same day, but traded below these levels throughout the week. It was at 7,603 at the end of trading on Friday, down 190 points from the start of the week. The steepest fall was seen in the last two trading sessions.
Similarly, the BSE Sensex opened the week at 26,173.47 points, made a high of 26,181 the same day, but ended the week 693 points, or 2.65per cent, lower.
Dipen Shah, head, private client group research, Kotak Securities, says, "Expectations of earlier-than-expected rise in US interest rates, debt default by Argentina and lower-than-expected quarterly results soured the sentiment."
Vivek Gupta, director, research, CapitalVia Global Research, says, "Towards the end of the weekly trading sessions, Indian benchmark indices slipped from the top amid profit-booking." Foreign institutional investors were net sellers of shares worth Rs 1,552.40 crore during the week, according to the website of NSDL.
The worst-hit sectors were infrastructure, energy, metal and real estate. The CNX infrastructure fell 4.16per cent during the week. It was followed by CNX Energy (-3.67per cent), CNX Metal (-3.23per cent) and CNX Realty (-2.78per cent).
However, the defensive pharma sector did comparatively well. The CNX Pharma index rose 0.13per cent to 9,179.70 during the week.
In the CNX 100 index, stocks such as Bharat Forge, Lupin, Kotak Mahindra Bank, Dabur India, Cipla, Sun Pharmaceuticals, Petronet LNG, HCL Technologies, Asian Paints, HDFC and Tech Mahindra touched their all-time highs.
About the outlook for the next week, Rakesh Goyal,senior vice president, Bonanza Portfolio, says, "The markets may adjust to the US Fed's announcement of a cut in monthly asset purchases. The markets will also be keenly watching UK's and Japan's PMI numbers, besides US jobless claims. The markets will also keep a watch on developments in Gaza that have been a worry for over two weeks now."
Shah of Kotak Securities says, "In the short term, quarterly results, geo-political factors and monsoon will catch the attention of the market."
AIA Engineering, Atul Auto, Elecon Engineering, IGL, Kalpataru power, KPR mill, Marico, Orient Bank, Power Grid, Petronet LNG, Punj Lyod, Tata Communications and Tribhovandas Bhimji Zaveri may announce their quarterly results on Monday.