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Weekly: Nifty slides towards 8,500 as cautious investors book profit

Benchmark indices were down in red on a weekly basis for the first time in seven weeks as investors took profits on valuation concerns and not-so-steady global economies.

Locally, the slowdown in economic growth in the second quarter along with RBI maintaining staus quo in its Policy meeting this week dampened the investor sentiment. The only silver lining was RBI Governor Raghuram Rajan’s comment that rates could ease early next year as inflation showed signs of cooling.

For the week, the Sensex declined 236 points or 0.8% at 28,458 and the Nifty was off 50 points or 0.6% at 8,538.

However, the broader markets were a picture of strength with investor interest intact. The smallcap index advanced 1.8% and the midcap index gained 2.2% over the last five trading sessions.

Gains in ITC, HUL and Godrej Consumer up 4-8% helped the FMCG index emerge as the top sectoral gainer with gains of over 5.5%. ITC gained through the week as media reports suggested that the government was reconsidering a proposal to ban sale of loose cigarettes.

Even though the RBI decided to stay put on interest rates, rate sensitive pockets like Realty, Bankex and Auto indices, gained 0.7-1.8%, and were among the other top sectoral gainers of the week.

Among the laggards were Oil & Gas, IT, Power, PSU and Metal indices down 0.6-3.2%.

From the auto pack, Maruti Suzuki, Hero MotoCorp and Eicher Motor were the top gainers up 1-5%. Meanwhile, Bajaj Auto, Tata Motors and Mahindra & Mahindra declined upto 2% post reporting weak sales numbers for the month of November.

Sesa Sterlite, Axis Bank, ICICI Bank, Cipla and Coal India up 0.5-4.5% were the only other names in green among Sensex-30.

IT majors, Infosys, TCS and Wipro were in red down 1-5% due to strengthening of rupee. During the week Infosys turned ex-bonus.

Oil and Gas was another weak space with RIL, ONGC and GAIL down 3-4%.

Hindalco, Dr Reddys, Tata Power, BHEL, HDFC, Bharti Airtel down 4-6% were some the other notable losers.

For the week ahead, markets are likely to take cues from the macro data such as the current account deficit forJuly-September, CPI/ industrial production data.


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