Analysis: Indian Stock Markets this week

Indian investors experienced most volatile week in which bears and bulls experienced similar situation. On black Monday, BSE SENSEX lost 616 points – it is the second biggest fall in the BSE history. But, Markets sharply recovered then onwards. This signifies the strength in the fundamentals of Indian economy. Courtesy: BSE India
Day Traders:

Except Monday, Indian stock markets responded similar to other Asian markets. Day Traders should closely watch US and Asian markets before taking investment decisions. Another significant fact is some stocks (Dr.Reddys, Infosys, Satyam, and TCS) are following similar pattern of their US ADRs.

Pharma Stocks:

This is the week of Pharma stocks. Aurobindo Pharma, Orchid Chemicals, Lupin rose heavily as they got orders and permission news from foreign shores.

Zee rose due to Subhash Chandra’s announcement on Indian cricket league. BHEL is the most positive stock in the market as its past and future are looking bright.
Bank stocks and Auto Stocks are the major losers this week due to hike in CRR and REPO rates.

Next week:

Markets gave no clues about the future direction in the week. Infosys results and predictions may give some clues about market direction.
Volatile markets are the ideal platforms for astute day traders.