Markets remained flat during the week ended 17th April, 2014. Domestic markets were open for trade in only 3 of the overall trading sessions on account of holidays. S&P BSE Sensex fell by a marginal 12 points, to close at 22,629, while the 50 unit CNX Nifty closed with marginal gains of 0.04%. Broader indices like BSE Midcap and BSE Small cap also remained flat throughout the week, with a slight positive bias.
S&P BSE Sensex fell in all 3 trading sessions. The significant increase it global crude oil prices due to supply concerns from Russia sparked concerns with regards to India’s current account deficit and fiscal deficit as crude makes for a significant portion of India’s imports. Russia has been at the receiving end of a number of sanctions from the West due to its conflict with Ukraine over Crimea. Also, poor economic data releases weighed heavily on sentiments. Wholesale price index for the month of March rose to 8.31% from 8.03% in February. This came as a complete shock to investors as inflation was well on its way down having moved to a 9-month low in February. Also, India’s industrial production witnessed an unexpected contraction in February.
On the sectoral front, five of the thirteen sectors managed to close trade with gains. FMCG featured at the top of the list with gains of 2.2%. The sector was preceded by Information Technology and Oil & Gas, which rose by 0.8% and 0.7%, respectively. S&P BSE Teck and Auto close ended the week in green. Among the losers, BSE Realty was the worst performing sector as it fell by a significant 4.1%. The sector was preceded by Consumer durables and Capital goods, which fell by 1.6%, and 1.1% respectively.
Foreign institutional investors were net seller during the week. On the equity side, foreign investors pulled out money as net outflows stood at around Rs. 570 crores. The debt segment also saw heavy out flows of about Rs. 2221 crores.
