Weekly-market: Q3 earnings spell falls flat

Sharekhan's weekly newsletter Visit us at www.sharekhan.com January 15, 2010  Market Commentary  Q3 earnings spell falls flat Market closes the week flat despite better-than-expected Q3 earnings season till date and robust industrial production in December 2009 Q3 earnings and strong index of industrial production (IIP) readings failed to enthuse investors and the Sensex ended the week mere 0.1% high, though continuing its gaining streak into fourth week straight. Volatility continued with the Sensex swinging 500 points during the week with a weekly high of 17776 and a low of 17276, before closing the week at 17554. Nifty closed at 5252, seven points lower than its previous week closing. Infosys Technology?s Q3 earnings and outlook prepared the pitch for information technology stocks and the sector index, BSE IT, gained 9% over the week. BSE TECk, the second best performer of the week, advanced 6.74%. With odds of policy intervention by the Reserve Bank of India increasing with all talks of taming the run-away inflation and on improved industrial outlook, the BSE Bankex fell the most?by 2.27%, followed by BSE FMCG that shed 1.81% in the week. We expect the market to remain volatile ahead of the third quarterly monetary policy 2009-10 review by the RBI on January 29, 2010. And the trend in the coming week will be set, to a good extent, by earnings results of India?s third-largest software exporter Wipro and India?s biggest company by market capitilisation Reliance Industries.  To know more about our products and services, click here. ?This document has been prepared by Sharekhan Ltd. This Document is subject to changes without prior notice and is intended only for the person or entity to which it is addressed to and may contain confidential and/or privileged material and is not for any type of circulation. Any review, retransmission, or any other use is prohibited. 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