Sensex posts 3rd straight weekly fall, Midcaps gain

The S&P BSE Sensex lost 182.03 points to 20,217.39. The 50-shares Nifty dropped 60.70 points or 1% to 5,995.45

Indices lost ground during mid-week after starting the week on a higher note. The minutes from the Federal Reserve's last meeting signalling US stimulus may be reduced in coming months and persisting worries over the slowdown in foreign investors’ buying into Indian shares weighed down the sentiments of local investors.

FIIs sold shares worth $9.5 million on Thursday minutes from the last U.S. Federal Reserve meeting showed a decision on tapering its bond-buying programme may be taken at one of its next few meetings.

SENSEX & NIFTY

Sensex posted a third consecutive weekly fall, closing nearly 1% lower. The 30-share Sensex lost 182.03 points to 20,217.39. The 50-share Nifty dropped 60.70 points or 1% to 5,995.45.

The broader markets, however, outperformed the benchmark indices. The BSE Mid-Cap index rose 0.21%. The BSE Small-Cap index gained 0.63%.

WEEKLY WRAP

Benchmark indices surged on Monday as global stocks rose after China vowed to carry out the broadest expansion of economic freedoms since at least the 1990s and as investors continued to find encouragement in Fed Chairman nominee, Janet Yellen's support for the Federal Reserve's stimulus efforts. Sensex jumped 451.32 points to 20,850.74, its highest closing level since 6 November 2013.

Markets remained choppy on Tuesday. Sensex gained 40.08 points at 20,890.82.

Markets edged lower on Wednesday due to heavy selling during the last one hour or so of trade. Sensex lost 255.69 points or 1.22% to settle at 20,635.13 on that day, its lowest closing level since 14 November 2013.

Key benchmark indices slumped on Thursday after minutes from the Federal Reserve's last meeting signaled US stimulus may be reduced in coming months. Sensex lost 406.08 points or 1.97% to settle at 20,229.05 on that day, its lowest closing level since 13 November 2013.

Key benchmark indices edged lower in choppy trade on Friday. BSE Sensex lost 11.66 points or 0.06% to settle at 20,217.39.

GAINERS & LOSERS

From the 30-share Sensex pack, 19 stocks fell and eleven rose in the week.

Sesa Sterlite lost 8.7% this week, making it the worst Sensex performer. It was the third consecutive week of losses for Sesa Sterlite.

Bajaj Auto fell 6.8% this week. High interest rates, fuel costs and a slowing economy have dimmed the near-term outlook for the Indian auto industry.

Cipla extended its losing streak for the second consecutive week, closing 4.8% lower. A week after reporting a surge in its September-quarter net profit, Sun Pharma fell 4% this week.

Metal stocks edged higher after China announced bold economic and social reforms last week. Tata Steel, Hindalco Industries and Jindal Steel & Power shined between 2-4%.

ONGC advanced 2.94%. ONGC's wholly owned subsidiary ONGC Videsh (OVL) announced that it has signed Memorandum of Understanding (MoU) with Petrovietnam to promote the joint cooperation in hydrocarbon sector in Vietnam, India and other countries.

Most bank pivotals edged higher. State Bank of India rose 1.04%. ICICI Bank lost 2.69%. The Reserve Bank of India (RBI) said it would focus on the monitoring of banks' asset quality and help improve the poor debt recovery process in the country.

EVENTS TO WATCH OUT NEXT WEEK

In the coming week, investors will keep an eye on July-September GDP data and fiscal deficit numbers for the April-October period.