Previous Week : Sensex on a weekly basis closed down by 891 points
Global Equity trembled during last week trade on concerns about global economic growth. Benchmark indices sank to their lowest closing levels since June 14, 2010. Nifty closed below its previous days closing in all the five sessions and has closed the week deep in red.
  • The Sensex on a weekly basis closed down by 891 points or -4.9%,to close at 17305.87 levels whereas the Nifty closed down by 270 points, or -4.9%, to close at 5211.25 levels
  • Almost all the index stocks faced selling pressure among which BHEL, L&T, Reliance, State bank of India, Sail, Jindal Steel & Power and Axis Bank were the major draggers where as ONGC and BPCL managed to close in green
  • The output of eight core industries expanded 5.2% in the month of June 2011. It had expanded 5.3% in month of May and 4.4% in June 2010
  • Among the key industries that expanded in the month of June include Steel (12.5%), Electricity (8.2%) and Crude Oil (7.7%) while Natural gas (-11.7%) coal (-3.3%) and fertilizer (-2.4%) have a shown de-growth
  • Aggregate dispatches of top four cement companies (ACC, Ambuja, Ultratech, JP Associates ) in july 2011 were up by ~15% on YoY basis on account of low base in July 2010, inventory build up by cement dealers and delay in monsoon
  • Power Grid numbers were a tad below street estimates mainly on account de-growth in consultancy business. Bharti Airtel reported 4.4% QoQ growth in revenue to 16974.9 crore, with 33.6% consolidated EBITDA margin
  • The results were in line with expectations on operational front, however, higher than expected interest cost at 855 crore (up 25.3% QoQ) and higher tax out go resulted in 13.2% sequential decline in bottom line
  • India's food inflation for the week ended July 23 increased to 8.04%on a week-on-week basis from 7.33% for the week ended July 16 while the fuel price index remained unchanged at 12.12%
  • Nymex crude declined by 11% on a weekly basis to close at $85 /barrel (on Thursday) on concerns about global economic slowdown

Week Ahead : Tata Motors, Larsen and Toubro, IOC & Coal India to declare their earnings next week
Nifty extended its losses to ~4.9% for the week amidst growing concerns about global economies entering in to recession. After futile attempt to break past 5550 on Monday, index tanked 433 points from Monday's highs before posting lowest closing in 2011.
  • Panic in global equities resulted in knee-jerk reaction in Indian markets as well. However in late session on Friday index staged smart pull back to close above 5200 mark
  • Volatility is likely to stay higher for at least couple of sessions before index finds its ground. Going forward, Nifty has an important support in the range of 5070-5000 levels
  • Meaningful recovery could be expected only if index manages to close above 5350 levels. On the rallies, 5300-5330 is likely to act as stiff resistance
  • In the month of July, FIIs were net buyers to the tune of 7411 crore while MF were net buyers to the tune of 652 crore . In the month August till date (August 4) FIIs have sold shares worth 1240 crores while DII were net buyers to the tune of 784 crores
  • Among key data to watch globally would be US Fed interest rate decision, US MBA mortgage application, US continuing jobless claims
  • Among the key data to watch next week would be weekly inflation and IIP data
  • Major companies declaring their earnings next week would be Tata Motors, Larsen and Toubro, IOC, Coal India, BPCL and Mahindra and Mahindra

Source: icicidirect