Ambition to Ambition

Weekly Review
August 14, 2010 Markets end flat
The Indian stock market ended almost flat during the week, amidst sessions marked by volatility, with the BSE Sensex and the NSE Nifty ending marginally higher by 0.1% and 0.2%, respectively. However, BSE mid-cap and BSE small-cap indices outperformed their large-cap counterparts by further extending gains by 1.5% and 1.6%, respectively, during the week. Factors such as strong numbers reported by Tata Motors and State Bank of India during 1QFY2011, lower-than-expected IIP growth at 7.1%, concerns over the pace and sustainability of the global economic recovery leading to mixed cues from global markets weighed on investor sentiments during the week. On the sectoral front, majority of the sectoral indices ended in green, with the BSE realty index and BSE Bankex gaining the maximum by 6.6% and 3.4%, respectively. However, the BSE IT index lost the maximum during the week, ending lower by 2.2%.
FII activity
As on Aug 06 Aug 09 Aug 10 Aug 11 Aug 12 Net Cash (Equity) 829 (59) 614 193 449 2,027 Futures (72) 318 (282) (1,117) (1,068) (2,222) (Rs crore) Net Activity 757 259 331 (924) (618) (195)

Mutual Fund activity (Equity)
As on Aug 05 Aug 06 Aug 09 Aug 10 Aug 11 Net Purchases 516 601 569 1,054 780 3,520 Sales 839 477 957 940 919 4,132 (Rs crore) Net Activity (323) 124 (387) 114 (140) (612)

Realty index outperforms the Sensex
The realty index gained 6.6% during the week, outperforming the Sensex. The top gainers in the real estate space were Anant Raj (up 19.2%), Omaxe Ltd. (up 12%), Sobha Developers (up 8.8%), HDIL (up 7.5%) and Akruti City Ltd. (up 6.1%). The rally can be attributed to the firm trend witnessed in stability in residential volumes over last 2-3 quarters across markets, with improvement in leasing activity. We expect realty stocks to outperform on the back of a strong project pipeline, well-capitalised balance sheet and decent execution skills.

Global Indices
Indices Aug. 06, 10 BSE 30 NSE...