Worst May Be Over For Banks

The global markets traded mixed in the past couple of weeks with the German indices outperforming the other major global indices. The German DAX gained 2.99 per cent, Dow Jones Industrial Average slipped 0.37 per cent :PaidContentStart] while S&P 500 managed to close flat in the past two weeks. Nasdaq gained the most amongst the US indices and managed to close higher by 2.60 per cent, thus indicating outperformance of IT stocks. The European  markets outperformed the global peers with FTSE closing higher by 2.27 per cent even as CAC 40 gained 1.71 per cent. Among Asian markets, Shanghai was the best performer along with Nikkie. Shanghai gained 2.24 per cent, while Nikkie was up by 1.72 per cent.
 
The Indian indices moved up in the past couple of weeks, clearly outperforming the US indices. Sensex was up by 2.20 per cent, while Nifty gained 1.24 per cent. The broader markets underperformed the major indices. The mid-cap index slipped 1.35 per cent, while small-cap index slipped 1 per cent. Metal index was the worst performing index among the sectoral indices. Metal index was down by 4.19 per cent. IT stocks, along with power and realty stocks, witnessed profit booking. IT index was down by 2.14 per cent, power index was down by 1.30 per cent and realty index closed lower by 0.88 per cent. The FMCG index was among the best performing index in the past couple of weeks. Banking stocks saw some fresh buying even as the Bankex gained 3.80 per cent in past couple of weeks. Auto index traded flat during the same time frame.

 The FIIs were net sellers in the market in the last couple of weeks. FIIs sold to the tune of Rs 6124.62 crore, while DIIs were net buyers in the market. DIIs bought stocks worth Rs 4,232.57 crore. Overall, the markets remained steady, taking cues from quality earnings. The sugar companies reported dismal earnings, while the IT companies reported earnings in line with the market estimates. 

 Overall, the markets remained steady, taking cues from quality earnings. The sugar companies reported dismal earnings, while the IT companies reported earnings in line with the market estimates. 

The past fifteen days saw crude oil cross the crucial mark of $75 per barrel. The prices of gold firmed up in the last couple of weeks. The stock market was seen ignoring the crude oil price rise risk as well as interest rate risk emanating from the US markets. The steady recovery in the banking stocks indicated short covering in the banking stocks. Market experts believe the worst might be over for the banks and the stock prices may have bottomed out. Going ahead, the markets will take cues from the quality of earnings and the Karnataka election results.