The week started on a very uncertain note. The good news was strong global cues as oil prices remained just above $130/barrel. Even the FIIs were net buyers over a few sessions the previous week. But there was heightened anxiety and uncertainly over the confidence motion and all eyes were on Delhi.
Though the market was volatile on Monday, it ended on a positive note ahead of the trust vote in the Lok Sabha. The Sensex and Nifty both closed higher. While RIL, ICICI Bank, HDFC Bank and SBI were among the major Sensex gainers, Satyam and L&T lagged. In the overall market, 1,163 stocks advanced, 1,368 declined and 84 remained unchanged. IDFC was the most traded counter on the bourses.
The market continued to rally on Tuesday though the FIIs turned into net sellers. The UPA winning the confidence motion, that too with an unexpectedly margin, instilled further confidence in the bulls. And on Wednesday, they came out in full force. The Sensex and Nifty soared by almost 5 per cent by closing at 14,942 and 4,240, respectively. Though the FIIs pumped in money in the cash segment, they will probably remain bearish on India over the longer term.
After having a great run this week, the market slumped on Thursday but the Sensex did cross 15,000 on an intra-day high. BSE Oil & Gas and BSE Realty did manage to close in positive territory. The fall continued on Friday on the back of continued profit booking and weak global cues. The market ignored the stability in crude prices and steady inflation numbers. But though the market closed on a negative note, its weekly gains were higher than the week prior. The previous Friday (July 18) the Sensex closed at 13,635. Last Friday (July 25) it closed at 14,274.
There is just no saying how the market will behave anymore. Despite oil falling below $125/barrel, the WPI remaining stable and the government winning the confidence vote and promising to go ahead with the reforms – specially in banking and insurance – and disinvestment, the market slumped.