INSUBCONTINENT EXCLUSIVE:
Investors were taken aback by the RBI's surprise pause on the key lending rates, say analystsDomestic stock markets ended the week around
1 per cent lower dragged by financial, auto and metal stocks
The S-P BSE Sensex index ended the week with a loss of 348.66 points, marking a decline of 0.85 per cent, whereas the broader NSE Nifty
benchmark gave up 134.55 points (1.12 per cent)
The 50-scrip index reversed the positive trend witnessed in past two weeks, a period in which it had added 160.6 points - or 1.35 per cent
According to analysts, some volatility can be expected going forward after recent correction."In a bull market, corrections are very violent
so it is just a welcome correction," AK Prabhakar, head of research at IDBI Capital, told TheIndianSubcontinent.In the week ended December
6, Yes Bank, Eicher Motors, GAIL and IndusInd Bank were the top percentage laggards on the 50-scrip index, besides HCL Tech, whose shares
traded ex-bonus on Thursday in the ratio of 1:1
HCL Tech ended the week at Rs 560, as against its close of Rs 1,127.65 the previous week.On the other hand, only eleven stocks on the Nifty
50 index moved higher for the week
Top gainers included Kotak Mahindra Bank (+3.78 per cent), TCS (+3.43 per cent) and Infosys (+2.61 per cent).Nine out of the 11 sectoral
gauges on the National Stock Exchange (NSE) finished lower, led by the Nifty PSU Bank, Nifty Auto and Nifty Metal indices which declined
7.83 per cent, 3.46 per cent and 3.41 per cent respectively.The Nifty Bank registered a loss of 1.89 per cent for the week, after moving
higher for eight consecutive weeks
The Nifty Bank index - which comprises shares in 12 major lenders in the country - had gained 4,214.25 points (15.20) in past eight
weeks.Investors were taken aback by the Reserve Bank of India's surprise pause on the key lending rates, say analysts.In its fifth
bi-monthly review, the Monetary Policy Committee decided to hold the repo rate at the existing nine-year low of 5.15 per cent against Street
expectations of a 25-basis-point cut while maintaining an "accommodative" stance."The RBI action indicates that there is little room for
monetary easing after full year of rate cuts
Going forward, the RBI has decided to wait and watch to see how the economy moves," said Jimeet Modi, CEO, SAMCO Securities.In the coming
week, macroeconomic data and global cues are expected to cause some volatility in the domestic markets
The government will release official data on inflation and industrial production on Thursday."One can expect banking sector to correct for
In a structural bull market the corrections are never big," said Mr Prabhakar, who expects the Nifty to clock a fresh all-time high around
12,500 by the end of the year.
