Indian benchmark indices settled lower this week led by some weakness seen in global markets. However, there was some relief to hear that the government and the opposition has reached to some agreement on passing the banking bill in parliament, which was at a logjam. Better than IIP data and lower than expected WPI inflation numbers failed to impress market.
On sectoral front, BSE consumer durables, power, capital goods and PSU stocks led the decline.
While on Friday, infrastructure, real estate and fertilizers stocks gained after the government cleared long pending reforms, which will help these sectors in the long-term.India's industrial production grew 8.2% in October 2012 as against market expectations of 4.5% growth.
The RBI's mid-quarter monetary policy is scheduled on 18th of this month wherein market is anticipating possible rate cuts, which can lead to market volatility in near term.
The 30-share index, Sensex declined 106.85 points, or 0.55% over previous week to 19,317.25 On the other hand, the broad based NSE Nifty too dipped 27.80 points, or 0.47%, to 5,879.6. Meanwhile, BSE Midcap and Smallcap lost 1.01% and 1.24% respectively.
The sectoral indices at the BSE ended mixed during the week. Top losers were BSE Consumer durables (4.65%), Power (3.23%), Capital goods (2.59%), PSU (1.68%), Realty (1.65%), FMCG (1.5%), Teck (1.35%), IT (0.96%) and Oil & gas (0.79%). However, BSE Auto gained 2.07% followed by Bankex (0.58%), Healthcare (0.14%) and Metal (0.01%).
India's headline inflation, based on monthly WPI, declined 7.24% in November 2012 as compared to 7.45% for the previous month. It was much below with market expectations of 7.6%.