Weekly Market Summary

Last trading day: Friday, 6 November

 It was a week of high drama on Dalal Street. Sensex saw a 950-point swing and Nifty 300-point swing this week. But the extremely volatile week ended on a positive note yesterday. Experts believe while earnings have been in line with expectations, there are no positive triggers to take the market higher so it could be in a range for the next few weeks. This week's average figures were: Sensex and Nifty both up almost 1.7%. BSE Midcap index was up 4%, BSE Smallcap index up 1.6% over the week. BSE Realty index was up 4.75%, BSE Metal index and BSE Bankex index both up 4%, BSE Autoindex up 3.5%, BSE Oil & Gas index up 2.1%, BSE Consumer Goods and BSE Consumer Durables index both up 1.5%. While BSE FMCG index was down 1.45%.

It was a good Friday for our market that had a mildly volatile session but closed in the positive. Sensex shut shop at 16158, up 94 points and Nifty at 4796, up 30 points from the previous close. CNX Midcap index was up 2.17% and BSE Smallcap index was up 2.24%. The market breadth was positive with advances at 1017 against declines of 256 on the NSE. Top Nifty gainers included Suzlon, JP Associates and Ranbaxy while losers were Idea, Tata Power and Hero Honda.

The fundamentals for India are good and one can be cautiously optimistic over the next 2-3 years, says Adrian Lim of Aberdeen Asset Management. This is the time to invest into the IT sector, accumulate TCS, Infosys and Mphasis for long-term gains. Other top picks to stay invested for the long term are Grasim, HDFC Bank and ICICI Bank.    After the sharp run up in the market, there could be a severe correction of 20%, says Mark Mobius of Templeton Asset Management. We are in the middle of the range for emerging markets. But Indian market is likely to be higher than here in the next 12 months. Some of the Indian IPOs are over priced, 

This is a good time to start buying into the telecom sector as it looks fairly valued after the correction, says Ambareesh Baliga of Karvy Stock Broking . Buy Bharti Airtel on dips around Rs 320 with a target price of Rs 420-440 in 12-15 months. The stock is currently trading at Rs 319, up 0.17% on the BSE.