The 30-share Sensex ended the week on Friday with a gain of 790.76 points or 4.18%. However, profit-booking continued for the second consecutive day on Friday on frontline index constituents following weak global cues on US credit market turmoil that saw the Sensex ending the day marginally lower by 86.53 points or 0.44% at 19,698.36 points. The weekly inflation rising above 3% also had hurt the sentiment. On the other hand, the broader Nifty closed the day on a flat note at 5,906.85 points, losing marginally by 0.09% or 5.25 points.
Inflation based on the wholesale price index rose 3.11% against the previous week?s figure of 2.97%.
However, on a more positive side, when compared to its Asian peers, the domestic equity indices were able to limit their losses to less than 0.50%. Whereas Hang Seng came down by 1136.78 points or 3.95% at 27614.43 points, Nikkei 225 lost 241.69 points or 1.57% at 15154.61 points. The Taiwan Weighted closed at 8,764.82 points, sheding 140.59 points or 1.58%.
Gaurang Shah, chief manager, Geojit Financial Services Ltd, said, ?The market is trying to consolidate at the current level with lack of fresh activity taking place to boost the momentum. We can expect this trend to continue till mid or end December. There after, when fresh allocation comes from FIIs, the steam will really pick up. Decoupling is very much evident beyond doubt going by the way the Indian market has limited losses when its counterparts in Asia fell by 1-3%?.
But investors’ preference towards the small and mid-cap stocks were clearly visible once again on Friday with the BSE small-cap and mid-cap indices outperforming the benchmark Sensex. BSE small-cap surged higher by 153.07 points or 1.50% to its new closing peak of 10,380.73 points while BSE mid-cap surged to a new closing high of 8,512.38 points, gaining 98.29 points or 1.17%. Active buying in the side counters resulted in a robust market breadth with 1,909 stocks in BSE rising as compared to decline by 912 companies. Among the Sensex stocks, 15 advanced while the same number closed in the red.
As per the provisional figures released by the stock exchanges, foreign institutional investors were net sellers to the tune of Rs 363.14 crore while domestic institutional investors were net buyers worth Rs 239.72 crore on Friday.
