Previous week: Indian equity market snapped the recent gains it witnessed during the last 2-3 weeks and fell sharply in the previous week ended on 20 February, 2009. The very first day of the week set the trend for the market, as the interim budget proved to be a non-event, providing nothing for the corporate sector against expectations of some stimulus. On a week-on-week basis, the 30-share BSE Sensex lost 792 points or 8.2% to close at 8843.21, whereas, the S&P CNX Nifty ended at 2736.45, down by 212 points or a loss of 7.2%. In the previous week on a closing basis, the BSE Sensex (30) fell in four out of five trading sessions. Banking remained the worst hit among all sectors. The inflation for the week ended February 7 came at 3.92% during the week.
Week Ahead : The market will start the coming week with a cautious and weaker undertone after sharp downfall in the preceding week. It is also likely to follow next Monday’s global markets as Indian markets will remain closed on February 23. The market is bracing for an RBI action in terms of interest rate cuts that is likely to come in the coming week. If happens this could be one major sentiment booster for the broader market. The volatility is likely to be higher in the coming week, as there will be monthly derivatives expiry on February 26. Towards the end of the week some important Indian data are set to come including inflation numbers for February 14 week, fiscal deficit for January and GDP for Q4.