Previous Week : Sensex lost 771 points for the week to settle at 16162.06
Benchmark Indices witnessed seesaw movement during last week trade, It started the week on a positive note but the global equities tumbled during the second half of the week after US Federal Reserve gloomy outlook on the US economy. A sharp fall in rupee (which signaled huge outflow of money) resulted in a bloodbath on Indian equities on Thursday, as Global sell-off triggered the biggest percentage fall since August 2009. The sell off extended even on Friday as the benchmark indices closed deeply in red on weekly basis.
  • The Sensex lost 771 points or - 4.60% for the week to settle at 16162.06 whereas the Nifty ended down by 216.50 points or - 4.30% to close at 4867.75 levels
  • Most of the index stocks ended deep in red with heavyweights such as L&T, HDFC, HDFC Bank, Tata Motors, ONGC, Hindalco and Tata Steel were the major draggers during last week trade
  • The advance tax collection from top 100 corporates during the July-September quarter was up by 9.9% as compared to corresponding period of the last financial year, well short of the 31% increase in direct tax projected by the government for the whole year
  • Nymex crude declined 8.0% on a weekly basis to close at $80.93 /barrel (on Thursday) on account of weak US economic outlook by the US Fed
  • The week witnessed a bloodbath in global markets (including commodities,) coupled with IMFs' lowering of growth forecast and Italy's debt rating downgrade
  • President Obama proposed a budget deficit reduction proposal that includes $1.5 trillion in tax increases, by mostly targeting the wealthy Americans
  • The IMF has lowered its global growth forecast to 4% for 2011 and 2012. The lender had previously forecasted 4.3% growth for 2011 and 4.5% expansion in 2012
  • Italy's credit rating was cut to A from A+ by Standard & Poor's on concern that weakening economic growth and a "fragile" government may not be able to reduce the euro-region's second-largest debt burden
  • Moody's Investors Service lowered debt ratings for Bank of America Corp, Citigroup Inc and Wells Fargo on Wednesday, citing reasons that the US government is getting less comfortable with bailing out large troubled lenders. It also downgraded eight Greek banks by two notches on Friday due to their exposure to Greek government bonds

Week Ahead : FIIs have sold shares worth 260 crores and DII were net sellers to the tune of 96 crores
Nifty traded extremely volatile before it closed 4.30% down for the week at 4867. After initially taking support at 5000 mark index rallied to test 5170 mark before reacting sharply lower in last two sessions of the week.
  • Index once again reacted from cluster of resistances around 5200 mark
  • As we approach expiry week, index is expected to remain more volatile. Short term bias remains negative as long as Nifty remains below 5000 levels while key supports for coming week are seen around 4750 levels
  • In the month of September till date (September 22) FIIs have sold shares worth 260 crores and DII were net sellers to the tune of 96 crores
  • In India, the key data to watch next week would be current account balance (Q2) and weekly inflation