Sensex declines marginally in the weekly trade (Weekly Review)

The Indian equities markets posted marginal losses in the truncated week as profit booking led to volatile trade.

The benchmark Sensex was marginally down by 0.21 percent in the week ended Oct 1 from its previous weekly close on Sep 26. The index closed at 26,567.99 points, while it had ended trade at 26,626.32 points on Sep 26.

In the previous week the 30-scrip Sensitive Index had lost 1.71 percent in the week ended Sep 26 from its previous weekly close on Sep 19. The index closed at 26,626.32 points, while it had ended trade at 27,090.42 points on Sep 19.

The week under review saw the Reserve Bank of India (RBI) maintaining key interest rates in its bi-monthly monetary policy.

RBI said that the country is currently positioned to reach the inflation target of six percent by January 2016.

It has retained the economy's growth projection for current fiscal at 5.5 percent and said the future policy stance will be influenced by the inflation outlook.

The status quo in these key policy rates mean the equated monthly instalments (EMIs) on home, auto and other loans would remain unchanged as these rates determine lending and borrowing rates of the commercial banks.

However, the RBI's decision did not dampen the markets which had factored in the eventuality of the RBI holding policy rates. In fact, the benchmark index made marginal gains.

The next trigger for the market movement, said analysts would be the inflation and growth data coupled with announcements of quarterly results from July-September period.

The Indian markets will resume trade on Tuesday (Oct 7).

"In the near term, geo-political tensions, economic growth in China and eurozone will take most of the attention of the market. Quarterly results will start pouring in a couple of weeks and will impact individual stocks," said Dipen Shah, head of private client group research at Kotak Securities.

Due to negative global and domestic cues the foreign investors went on a selling spree in the three sessions long week.

For the week ended Oc 1, the FPIs massively sold stocks worth Rs.653.95 crore or $105.29 million, according to data with the National Securities Depository Limited (NSDL).

For the week ended Sep 26, the FPIs had sold stocks worth Rs.2,487.02 crore and had only bought shares worth $75.40 million or Rs.458.34 crore.

The foreign institutional investors (FIIs) along with sub-accounts and qualified foreign investors have been clubbed together by market regulator Securities and Exchange Board of India (SEBI)to create a new investor category called FPIs.

The FPIs had remained net sellers Wednesday. They sold shares worth $40.84 million, or Rs.250.88 crore, on Oct 1.

The markets on Wednesday closed in the red down 62.52 points or 0.23 percent.

The 30-scrip Sensitive Index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 26,681.47 points, closed at 26,567.99 points, down 62.52 points or 0.23 percent from the previous day's close at 26,630.51 points.

The major Sensex gainers on Wednesday were: Wipro, up 3.22 percent at Rs.615.55; Infosys, up 2.66 percent at Rs.3,847.20; Mahindra and Mahindra, up 2.07 percent at Rs.1,390.55; Tata Consultancy Services (TCS), up 1.37 percent at Rs.2,775.70; and Hero MotoCorp, up 1.30 percent at Rs.2,878.90.

The losers on Wednesday were: Maruti, down 3.11 percent at Rs.2,968.90; Tata Power, down 2.47 percent at Rs.80.95; Tata Steel, down 2.31 percent at Rs.448.70; Gail, down 2.27 percent at Rs.438.65; and Reliance Industries, down 1.96 percent at Rs.926.80.