WEEKLY MARKET VIEW

A China meltdown triggered a weak start to the global markets including India. For most part of the week, barring Friday, Sensex and Nifty struggled to find any direction. Disappointing reports on manufacturing PMI and exports also dampened sentiment on Dalal Street. Finally, the BSE 30-share Sensex closed lower by 1.5% and NSE Nifty was down by 1.1%
The BSE Sensex hit an intra-week high of 15,740.8 and low of 15,356.7, while, NSE Nifty hit an intra-week high of 4,735.9 and low of 4,576.6.
The Foreign Institutional Funds purchased Rs14.73bn during the week. While the Domestic Institutional Funds were net buyers to the tune of Rs900mn during the week.
The top gainers: The top gainers in the Sensex were Maruti Suzuki (up 8.8%), Hero Honda (up 6.9%), Hindustan Unilever (up 4.9%), Reliance Capital (up 3.7%) and Tata Motors (up 3.6%).
The Top Losers: The top losers in the Sensex were Bharti Airtel (down 6.9%), BHEL (down 5.1%), Reliance Industries (down 4.5%), Ranbaxy Labs (down 3.8%) and Tata Power (down 3.7%).
The BSE IT Index (up 0.1%): The top gainer in the IT sector was Mphasis. The stock surged 9.2% during the week. The company partnered with Ingres Corporation to offer combined Open Source Solutions. Among the other major gainers were Sasken Communication (up 6.9%), Mahindra Satyam (up 5.5%), Oracle Financial (up 3.6%) and Infosys (up 0.5%). The top losers were Financial Tech (down 5.1%), TCS (down 1.6%) and HCL Tech (down 0.5%). Wipro fell 2.2% during the week. Wipro has won a number of new deals from BPO, Fosters, GE, Unitech Wireless, Lavasa etc. These deals address investor concerns on revenues from technology and telecom divisions. We expect Wipro to trade on a par with Infosys, implying a further 5-10% outperformance.
The BSE Consumer Index: The top losers in the consumer durables space were Mirc Electronics (down 6.5%), Whirlpool (down 2.7%) and Titan (down 0.1%). On the other hand, the top gainers were Su-Raj Diamonds (up 1.2%).
The Realty Sector (up 0.2%): The top losers in the real estate were Anant Raj Indus (down 9.2%), Omaxe (down 6.6%), HDIL (down 5.7%), Sobha Developers (down 5.5%) and Mahindra Lifespace (down 4.4%). The top gainers were Akruti City (up 10.3%), Unitech (up 7.8%) and Peninsula Land gained by 2.4% during the week. RBI approved fresh FII buying in the company of up to 40%.