Yesterday Market Summary

Last trading day: Friday, 27 November

 It was a volatile week for the market that ended in the negative. Experts think it's a difficult market to trade, but still feel that after some consolidation market may head higher. They feel investors could accumulate select stocks. This week's poor figures were: Sensex and Nifty both down almost 2.2%. BSE Midcap index was down 2.32%, BSE Smallcap index down 2% over the week. BSE Realty index was down 6.35%, BSE IT index down 4%,BSE Bankex index down 3%, BSE Metal index down 2.3%,BSE Consumer Goods index down 2.4%. On the gaining side, BSE FMCG index was up 0.25%.  

 It was a day of high drama on Dalal Street today, also the first day of the December series that closed on high volumes again. Dubai World announced a bad debt of $60 billion sending jitters around the world (European banks having $40 billion exposure and many Indian companies too have exposure to the Dubai market). Our market opened gap down (almost 300 points on Sensex and 100 points on Nifty) on this news but made a smart recovery at close with positive cues from European markets. Most experts believe the Dubai crisis would affect sentiments and not make any real impact on the economic fundamental of emerging markets. Sensex shut shop at 16632, down 222 points and Nifty is at 4941, down 63 points from the previous close. CNX Midcap index was down 1.49% and BSE Smallcap index was down 2.14%. The market breadth was negative with advances at 219 against declines of 1061 on the NSE. Top Nifty gainers included Suzlon,Ranbaxy and Unitech while losers were Siemens, IDFCand Axis Bank.

 Nifty nearly reached its 100 DMA at 4750 and saw a smart recovery from there, says Ashwani Gujral, technical analyst, on CNBC-TV18. The Dubai crisis may lead to a short-term correction where our market will consolidate and then resume its upmove, he says. If US markets don't fall on Monday then maybe Nifty could have made a bottom at 4800, he adds.  

The Dubai crisis has helped emerging markets correct, something that was badly required, says Mark Mobius of Templeton Asset Management on NDTV Profit. There is a huge backlog of IPOs in India, China and EMs, he says. But the Dubai default jitters are unlikely to see any real damage on the economic fundamentals of EMs, he adds. The correction could be used to do select buying, he says.