Volatile week ends on negative note

After getting strained by the disappointing IIP numbers, Sensex closed down by 169 points or by 0.97 % to 17192. Earlier the benchmark index reacted negatively as soon as IIP figure of 1.9 % was received, however losses were trimmed in the later session, Banking sector remained under tight pressure for second consecutive day as Moody’s downgraded the banking sector outlook on Wednesday. Earlier today S&P upgraded Indian banking system risk outlook by one notch from ‘Group 6’ to ‘Group 5’. Among such negative sentiments, Indian Rupee also hit a 30-month low and crossed Rs 50 per dollar mark.

European shares advanced on the back of on expectations that some political developments in debt ridden Italy and Greece would make the way for tough austerity measures that are crucial to resolve the debt crisis. Asian markets also closed with marginal gains.

Dow Jones Futures is currently trading 50 points or 0.42% up at 11905, indicating positive sentiment in the US markets.

Back home all Banking stocks moved southwards on the second day responding to the concerns raised over the asset quality. Realty, CG and Metal stocks also took most of the beatings. Oil and Gas, FMCG, Auto and Health care were the only indices which closed the week on some positive note.

Amongst the other stocks Kingfisher airways scrip hit the all time low to Rs 19.65 as company faces fresh headwinds from its peers. Mahindra Satyam ended the week on a positive note as company posted net profit of Rs 238 crore.

Tomorrow over 200 corporate will announce their quarterly results. Among them notable are Coal India, IVRCL, JP Power, NALCO, Wockhardt etc. We advice our readers to listen the post result management comments to get some idea of future earnings of the Corporate houses.

The BSE clocked a turnover of Rs 2610 crore, higher than Rs 2576.35 crore as on 9rd November, 2011. The market breadth, which indicates the overall health of the market, was negative. Out of a total of 3291 stocks traded, 2137stocks declined, 1036 advanced and 118 stocks remained unchanged.