Previous Week : Sensex rallied 850.15 points for the week to settle at 17082.69
Indian equity benchmark posted one of the strongest weekly performances in the past two months as participants shrugged off the fears of European sovereign default. After a positive start, the index rallied from strength to strength as the week progressed. In the end, benchmark indices ended at high of the week with gains in excess of 5%.
  • The Sensex rallied 850.15 points or 5.24% for the week to settle at 17082.69 whereas the Nifty closed at 5132.30, up 244.25 points or 5%
  • Reliance, SBI, ICICI Bank, Infosys, TCS, Tata Motors, Bajaj Auto, Bharti Airtel were the major gainers where as Maruti and Ranbaxy were the major draggers in the index during last week
  • IIP for the month of August came in at 4.1% (consensus: 4.8%) while Infosys result were ahead of our and Street expectations. India's food inflation for the week ended October 1, declined to 9.32% on a week-on-week basis from 9.41% for the week ended September 24. Inflation for the month of September was around 9.72%
  • Nymex crude increased 1.5% on a weekly basis to close at $84.23 /barrel (on Thursday)
  • The week witnessed Spain rating cut amidst mixed numbers from US companies
  • JP Morgan Chase & Co, the second-largest U.S. bank, reported a drop in its third-quarter net profit while PepsiCo Inc. reported better than expected earnings and affirmed its full-year target
  • Spain had its credit rating cut by one notch by Standard & Poor, which
  • cited a likely deterioration of the nation's bank assets and weaker economic growth prospects that will keep unemployment elevated. The Slovakian President passed a measure to approve the extension of the EFSF bailout fund

Week Ahead : Infosys set the tone for the up move
In the previous week, indices traded entirely with positive bias as we embarked upon Q2FY12 earnings season. Better than expected guidance from Infosys set the tone for the up move.
  • After bouncing off 4750 mark in the last week Nifty came within the striking distance of its major resistance in the 5,200-5,230 region
  • Prices, however, showed some fatigue near 5150 mark. For the coming week, bias remains positive as long as Nifty trades above 5040 levels while 5200-5230 is seen as a key hurdle and only a decisive breach of this level would open upside targets towards 5400 mark
  • On the flip side, a decisive breach of 5040 would signal short term reversal in prices taking Nifty towards 4950 levels which is the next meaningful support for the week
  • In the month of October till date (October 13) FIIs have sold shares worth 723.7 crores while DIIs were net buyers to the tune of 900.1 crores
  • Key data to watch globally would be US Housing stats, US Jobless claims and US September retail sales
  • In India, next week the key data to watch would be weekly inflation. Key companies declaring their results would be HDFC, HDFC Bank, TCS, Hero MotoCorp, Bajaj Auto, Hindustan Zinc, Jindal Steel and Power, L&T and Axis Bank