| | | Market Commentary | | | Markets crack this week under global pressure | | The Indian markets fell heavily this week as rate hike fears in China and Irish debt woes along with poor IIP data spooked investor sentiment | |
 Major news for the week:
- IIP at 4.4%, lowest in 15 months
- State Bank of India Q2 consolidated net profit falls 22.52%
- Bharti Airtel Q2 consolidated bottomline dips 26% yoy
- Tata Motors Q2 consolidated net profit up 100-fold
- Food inflation eases to 12.3%
Indian Indices
Bears took a centrestage this week clearly pushing all major indices down for most part of the week. After registering record highs in the previous week, the markets corrected sharply as weak global cues weighed on the sentiment. Fear of efforts by the Chinese government to combat rising inflation and worries over sovereign debt levels in Europe eroded investor sentiment. Back home, poor index of industrial production (IIP) data too spooked the markets.
India's industrial output in September 2010 rose at 4.4%, which was way below market expectations, and represents sharp deceleration from 8.2% growth registered in September 2009. India's food inflation softened to 12.3% for the week ended October 30, 2010 as compared to 12.85% seen in the previous week.
 During the week, the Sensex and the Nifty swung 967 and 279 points respectively. On its way, the Sensex and the Nifty slipped below there psychological levels of 21000 and 6100 respectively. Wrapping the week, the Sensex shut lower by 848 points or 4.04%, at 20157 and the Nifty closed lower by 241 points or 3.81%, at 6072. Global Indices
On the global front, all the major indices posted significant losses except Japan?s Nikkei index that ended the week with gains of 1.03%. During the week, global indices fell on the back of Irish?s debt woes and rate hike fears in China. China?s Shanghai Composite and the Sensex slid over 4%, while the US market slumped over 2%.
Sectoral and stock screening
During the week, all the sectors were under bear grip. The BSE Realty was worst hit, down by 6.52%, which was dragged lower by the index heavyweight DLF owing to disappointing quarterly earnings, followed by BSE Bankex that fell by 5.98% as the decline was led by heavyweight State Bank of India (SBI) on account of weak quarterly results. BSE PSU lost by 5.20%. The remaining sectoral indices slipped in the range of 0.23-4.03%. | | | On 'A' group stocks? front, the toppers were - Reliance Power up by 10.21% on buzz that the government will allocate gas to the company, Financial Technologies rose by 6.45% and Jet Airways India gained by 6.17%. The losers were - SBI and Infrastructure Development Finance Corporation, which slid by 13.16% and 11.64% respectively on the back of disappointing quarterly earnings, followed by Federal Bank that declined by 11.52%. FII/MF Activity
The foreign institutional investors (FIIs)? funds continued to flow in the Indian markets as FIIs bought Indian shares worth a net of Rs8,561.5 crore during the week. The local investors sold Indian stocks worth a net of Rs871.60 crore during the week. | | TOP MOVERS (GROUP A) | 
| | | | | | | | | | Financial Tech | 1,098.00 | 6.45 | | | | | | | | | | | Federal Bank | 438.55 | -11.52 | | | | | | | FII/MF ACTIVITIES* |
| | | | | | Gross purchase | 25,674 | 1,363 | | | | | | | | | | | | | *As on November 10, 2010 | | | | | Outlook
In the upcoming week, activity of FIIs along with the global and domestic economic data will dictate the markets? trend. India?s inflation for the month of October will be announced on Monday (November 15, 2010). After disappointing IIP data for the month of September, all eyes will now be on the monthly inflation numbers. The developments over Irish?s debt worries along with China?s step to curb rising inflation might also impact markets next week. | | 
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