Indices hold ground after volatile week

Rex Mathew
13 August 2005

Markets opened the week in a disastrous fashion with the frontline indices losing 2 per cent each on Monday. Profit booking on Monday morning gathered pace by late afternoon on confusion regarding imposition of additional margins by BSE.

Sharp decline in afternoon trades continued on Tuesday as the indices lost all their early gains and closed with marginal losses. The surge in oil prices and uncertainty in the US and other global markets also led to the weak sentiment.

The indices made a sharp bounce back on Wednesday and regained much of the ground lost on Monday. The rally was broadbased and even the oil stocks joined the up move.

Markets continued their merry ways on Thursday as well and the Sensex managed to close above the 7800 mark yet again. Pharmaceutical and select automobile and banking stocks led the rally.

Worries about continued FII inflows led to nervousness among traders on Friday and the indices closed with moderate losses. Weakness was visible in most frontline stocks.

Mid-caps were in a different zone after the losses of first two days of the week. The mid-cap index recovered from its losses in a hurry on Wednesday and went on to touch record highs on the last two days of the week. The CNX Mid-Cap 100 index closed the week above the 3600 mark for the first time ever.