Markets

Markets remain volatile all through week

BILAL HUSSAIN


Srinagar, July 13: The uncertain clouds continued to appear bulky over the markets in the week. There was no respite from any end. The market showed high volatility throughout the week. Political, economic and corporate news affected the movement of indices. Crude is still perched at the top, Among the other major factors that impacted was highly fluctuating crude oil prices, global sentiment, earnings of IT player like Infosys Technologies, inflation has surged ahead and now the data on industrial production IIP (Index of industrial production) numbers have disappointed. The market remained red in three of the five trading sessions.

Market wrap:
The week started off on a positive note due to firm global trend. However, the mood turned negative during the later part of the trading. The sensex, which was moving towards positive territory, ended the session with a gain of 72 pts.
On Tuesday markets start weak, the market recovered smartly in afternoon session after the left parties decided to withdraw support to the UPA government. However, despite some strong buying in late afternoon trade, the sensex ended with a loss of over 175 pts.
The market remained optimistic throughout Wednesday, strong global markets and short covering and bargain hunting in blue chip stocks lifted the sensex up by a whopping 615 pts in that session.
Remaining highly cautious ahead of release of results from Infosys Technologies and the data on inflation and industrial production, investors refrained from picking up stocks on Thursday. After a choppy ride, the sensex ended with a marginal gain on that day.
After a volatile start and subsequent range-bound movements, the market plunged sharply into the red on Friday afternoon as weak economic data and high crude oil prices dampened the sentiment.
While inflation rose 11.89 per cent, the previous week’s annual rise of 11.63 per cent, Industrial production rose 3.8 per cent in May 2008, much lower than revised 6.2 per cent growth in April 2008.
The fall in prices of blue chip stocks was so sharp that the sensex went down by as much as 456 pts in the session.

Institutional Front:
Foreign institutional investors sold shares worth Rs 1,012.20 crore in the month of July 2008, till 9 July 2008. FIIs sold shares worth Rs 26,477.50 crore in the calendar year 2008. Mutual funds have bought shares worth Rs 712.30 crore in the month of July 2008.

Expert’s opinion:
Capital market observers believe that the investors can take a stand regardless of the noise in the markets. Stand with the current portfolio and wait for market to move up else churn portfolio by picking stocks at lower levels. Fundaments of the company need to be given preferences over all other parameters.