After the substantial recovery during the previous week,
indices were due for a decline this week. Despite the
firm trend in other Asian markets, domestic indices lost
ground on Monday as automobile and technology stocks came
Wednesday, when the market reopened after Tuesday''s holiday,
global markets were facing selling pressure. This led
to a further fall in the indices as most frontline stocks
lost ground. Technology stocks were the worst hit while
automobile and select banking stocks slipped further.
covering on the last day of F&O settlement supported
a recovery in late trading on Thursday. Firm global markets
also helped improve the sentiment. Technology stocks led
the recovery, as they recouped most of their losses from
the previous session. Pharma and FMCG stocks also received
good buying support
up trend continued on Friday, helped once again by firm
global markets. Pharma and FMCG stocks continued to lead
while technology stocks were mixed. Higher oil prices
affected oil marketing and airline stocks.
gave up 214 points or 1.61 per cent for the week and the
Nifty declined 39 points or 1.01 per cent over the week.
Both indices had gained over 5 per cent each during the
and small-caps were also subdued during the week. Traders
booked partial profits after the previous week''s decline,
but movements in mid-caps and small caps were less volatile
this week. CNX Mid-Cap 100 index closed the week with
modest losses of 18 points or 0.37 per cent for the week.
economic and regulatory action
price inflation for the week ended 17 March remained
steady at 6.46 per cent. This is the third consecutive
week inflation has remained at the same level. Lower
prices of select primary food products were offset by
higher prices of manufactured goods, including cement.
Inflation was at 3.69 per cent during the same week
of previous year.
markets, global economy and oil
markets corrected this week after the previous week''s
rally as hopes of an early interest rate cut dimmed
after the US Fed chairman reiterated that inflation
remains the major concern. Persistent worries about
further weakness in the housing sector, which could
affect more areas of the banking and financial services
sectors, also kept the sentiment subdued. Higher oil
prices were another dampener.
Dow lost a per cent for the week while the S&P 500
index gave up 1.1 per cent. NASDAQ ended with losses
of 1.1 per cent for the week.
Development Bank (ADB) has upped its 2007 GDP growth
forecast for Asian economies, excluding Japan, to 7.6
per cent from its earlier estimate of 7.2 per cent.
Though exports from the region may slow down this year,
higher domestic consumer spending would more than compensate
for that. The ADB has forecast an even faster growth
rate of 7.7 per cent for the region during 2008. The
region had expanded at 8.3 per cent during 2006.
would continue to drive the region with an estimated
growth of 10 per cent this year, while the Indian economy
is forecast to grow at an annual rate of 8 per cent.
Chinese growth for 2008 is forecast at 9.8 per cent
while growth in India is predicted to accelerate to
8.3 per cent during that year.
expects US economic growth to slowdown to 2.5 per cent
for the current year, from its earlier forecast of 2.8
per cent. However, it expects US growth to pick up in
2008 and has forecast and annual growth rate of 3 per
cent. ADB''s current year growth forecast for the Eurozone
has been increased to 2.2 per cent from 1.8 per cent
earlier, but 2008 growth for the region may decline
modestly to 2.1 per cent. Japanese growth forecast has
been lowered to 2 per cent from 2.4 per cent for this
year while 2008 growth is expected at 2.3 per cent.
oil prices sustained the up trend this week as well
as the diplomatic crisis over the capture of British
sailors by Iran worsened. Already under heavy international
pressure to halt its nuclear programme, Iran continues
to maintain a belligerent stance over the issue. If
the crisis deteriorates further, there is a real threat
of a military conflict which would affect oil supplies.
in a major French oil terminal in the Mediterranean
and concerns about political tension in Nigeria further
fuelled the up trend.
month NYMEX futures rallied more than 5 per cent over
the week to settle at $65.87 per barrel on Friday.
The author may have positions in the stocks mentioned
above at the time of writing this article. This analysis/report
is only for the purpose of information and is not an investment
advice. Readers are advised to consult a certified financial
advisor before taking any investment decisions. While
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provided in the content the author or publisher shall
not be held responsible for any loss caused to any person