New Delhi, Mar 17: The week gone by was extremely volatile and choppy. We began with a correction. Then a corrective up move, followed by a sharp correction, yet another corrective up move and then yet another correction.
Though markets gained on two of the five trading sessions and lost on three, the intensity of the fall has shaken the markets. It appears the momentum is lost and probably enough signals are available to indicate some more correction in the coming week.
One normally associates Friday the 13th as an ill-omen. This time we had a double whammy where markets fell sharply on the 13th and then fell again the following Friday (March 15).
So, in short the 13th and Friday individually hit the markets quite sharply. BSESENSEX lost 1,475.96 points or 1.99 per cent to close at 72,643.43 points while NIFTY lost 470.20 points or 2.09 per cent to close at 22,023.35 points.
The broader markets saw BSE100, BSE200 and BSE500 lose 2.35 per cent, 2.6 per cent and 2.94 per cent respectively. There was worse to follow in BSEMIDCAP which lost 4.02 per cent and BSESMALLCAP which was down 5.91 per cent. Very clearly the beating in midcap and small cap was quite severe.
The Indian Rupee lost 14 paisa or 0.17 per cent to close at Rs 82.88 to the US Dollar. Dow Jones lost on two of the five sessions and gained on three. It closed virtually flat, down 8.38 points or 0.02 per cent to close at 38,714.77 points. What is becoming worrisome in the US is once again inflation, and with present levels, it appears that the rate cut would just get postponed.
Elections to the Lok Sabha have been announced and they will be held in seven phases beginning with the first phase being held on April 19. The remaining phases will be on April 26, May 7, May 13, May 20, May 25 and June 1. Counting would be held on June 4.
With the poll notification having been issued, the code of conduct is applicable with immediate effect and one would see political parties get to work on the business end of the elections.
Primary markets saw a lot of activity in the week gone by. We had three listings of equity and one of a road Invit, one other issue which saw its issue open and close for subscription, and one other issue which had opened for subscription but would close on Monday.
The first share to list was from R.K. Swamy who had issued shares at Rs 288. The listing price was at Rs 252, a discount of Rs 36 or 12.5 per cent. After a volatile day where the high and low was Rs 284.5 and Rs 248, the share closed debut day at Rs 263.25, a loss of Rs 24.75 or 8.59 per cent.