Volatile trade keeps markets on a see-saw (Weekly Markets Roundup)January 17th, 2009 - 3:09 pm ICT by IANS
Mumbai, Jan 17 (IANS) It was a see-saw week at the Indian equities markets, which kept investors guessing as to how to cope with such volatile conditions. A key index closed 0.88 percent down Friday, a little below its close of the previous week.Analysts believe that a crisis of confidence, more than finances, is making Indian equities act in such haphazard manner, tumbling one day and rising the next.
“We can no longer say that our economy is de-coupled from the rest of the global economy. We have been savouring the fruits of globalization. Now it’s time to bear the brunt of it,” said Jagannadham Thunuguntla, director of SMC Group, India’s fourth largest share brokerage firm.
The sensitive index (Sensex) of the Bombay Stock Exchange (BSE) ended Friday at 9,323.59 points, 3.06 percent or 276.85 points more than its previous close but a little less (0.88 percent) than its previous weekly close.
Similarly, the broader S&P CNX Nifty index of the National Stock Exchange (NSE) was at 2,828.6 points, 3.36 percent above Thursday’s close.
Markets began the week on a dismal note, with the Sensex plunging 3.18 percent or 299.16 points to close at 9,107.31 points Monday.
The broader S&P CNX Nifty index of the National Stock Exchange (NSE) performed similarly and closed at 2,799.90 points, 2.54 percent lower.
Tuesday was a lacklustre day with trading remaining very tightly bound and the Sensex ending trade lower 0.42 percent or 38 points down at 9,071.36 points.
The NSE Nifty also slipped into the red to end trade at 2,744.95 points or 1.02 percent lower.
However, the markets bounced back Wednesday with investors deciding to take profits by short-covering their positions and the Sensex shutting shop 3.3 percent up at 9,370.49 points.
The Nifty also followed with and ended trade at 2,835.3 points, higher by 90.35 points or 3.29 percent.
Thursday saw the gains of previous day being wiped out at both key exchanges with the Sensex plummeting south and closing at 9,046.74 points, 3.45 percent below its previous close.
The NSE Nifty was at 2,736.7 points, 3.48 percent lower than its previous close.
The week ended with the Sensex again soaring to end a little below where it began this week. The Sensex was at 9,323.59 points up 3.06 percent Friday, while the Nifty closed at 2,828.6 points, 3.36 percent above its previous close.
Foreign institutional investors (FIIs) made net sales of $386.10 million during the week.