Markets post weekly losses despite unabated FII buying

Extended purchases by foreign institutional investors (FIIs) did not help markets end higher in this shortened trading week. FIIs extended purchases to the 27th straight trading day on Thursday. These investors bought net shares worth Rs 970 crore, according to provisional data. So far in November, FIIs have bought shares worth close to Rs 2,000 crore after pumping in Rs 18,000 crore in October.

This week, NSE's Nifty shed 84.60 points, or 1.38 per cent, to 6,056.15. The 50-share index has lost 251.05 points, or 3.98 per cent in two weeks.

But for US Federal Reserve Chairman nominee Janet Yellen's indications that the American central bank will continue its massive bond-buying programme - Quantative Easing (QE3) - the losses would have been steeper.

Yellen said that US unemployment in October at 7.3 per cent was still high and reflected a labor market and economy far short of their potential, triggering weakness in the dollar against most currencies. Reserve Bank of India Governor Raghuram Rajan's comments on lower current account deficit targets also helped limit losses.

"Concerns about shift in global liquidity trends and weak domestic macro-economic data weighed on Indian equity markets this week. Sentiment turned on the last trading day on RBI comments that the external situation is manageable," said Franklin Templeton in its weekly review note.

Among the 30 Sensex stocks, 21 declined during the week. Major losers during the week were Gail India, Coal India, Cipla, Tata Power, SSLT, L&T, TCS, Reliance Industries and ONGC, which fell between two and six per cent.

Among gainers, Tata Steel, M&M, Dr Reddy's Lab and Maruti Suzuki gained between two and five per cent.

The total turnover at BSE and NSE fell to Rs 7,628.30 crore and Rs 43,582.81 crore, respectively, during the week from Rs 8,218.75 crore and Rs 49,058.68 crore.