IDBI AMC Weekly Market Snapshot -6th August, 2012 to 10th August , 2012
The Sensex and Nifty, ended the week, on a positive note, with a increase of ~359 pts (2.1%) and ~105 pts (2.0%) closing at 17,557 and 5,320 respectively.
The Indian stock market went up for a second consecutive week. Investor sentiment was boosted by data showing that foreign funds remianed net buyers of Indian stocks. Further, the positive sentiment was aided by comments from the new Union Finance minister Mr.P Chidambaram that he intends to shortly unveil a path of fiscal consolidation.
However, by the end of the week negative news came in the form of a weak IIP numbers. IIP for March came at negative 1.8% aginst growth of 9.5% in the previous year. IIP came weak mainly on account of poor show by the manufacturing and capital goods sector.
Internationally, jobs openings in the US rose in June to the highest level in four years indicating that employement gains may accelerate in the second half of the year. Also, fewer Americans filed applications for unemployment benefits last week, a sign the labor market may keep improving after hiring picked up in July. Jobless claims unexpectedly dropped by 6,000 to 361,000. Europe however remained under pressure with Germany’s factory orders declining by by more than twice of economist’s forecast.
The INR appreciated slightly by 0.8% to Rs 55.29 from Rs 55.76 per USD during the week.
Gold prices went up by 1.0% to USD 1620.2/ounce from USD 1603.5/ounce during the week.
All sectoral indices ended the week on positive note. Biggest gainers were BSE Auto (up 3.9%), BSE IT (up 3.6%) and BSE Metal Index (up 3.1%).
Crude prices saw another increase of 3.8% in the week from $ 108.9/bbl to $ 113.0/bbl during the week.
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