Indices record new highs during the week after consolidation

Uncertain trend in most global markets did not have much of an impact on domestic markets as they surged to new lifetime highs after many sessions of consolidation. Worries about higher interest rates are affecting most markets and the recovery in oil prices is not helping matters either.

The declining rupee has not affected the markets negatively so far, unlike this October when a weak rupee led to some selling by overseas hedge funds. The weak rupee is in fact having a positive impact on technology stocks as their margins would improve.

The markets opened on a weak note on Monday as the frontline indices lost nearly 2 per cent each. The indices declined sharply in mid-morning trades as stocks of oil marketing companies slid on higher oil prices.

The indices turned volatile on Tuesday as they gave up all their gains in late afternoon trades. The decline was once again led by stocks of oil marketing companies joined by pharmaceuticals and banking.

ONGC started its rally on Tuesday and closed with gains on all three subsequent sessions. Higher oil prices and expectations of an interim dividend are driving the stock and there is also talk of some aggressive overseas forays. ONGC had come under severe criticism from sections of the government recently.