For the first time in weeks, we saw some selling pressure emerge in the Indian markets. Investors have now begun realizing that at 10,000 points on the index the markets are not really cheap. In fact, investors maybe getting a little callous over the markets and there are very few pockets that one can invest in given that prices have really surged a great deal.
The one pocket that saw severe drubbing this week was the pharma space, where stocks like Lupin, Dr Reddys and Sun Pharma hit 52-week lows. On Friday, Biocon crashed as much as 5 per cent in trade. Stocks from the sector have been badly hit due to margins squeeze in the US and also a fast appreciating rupee. Oil marketing companies had a splendid week after reports that kerosene prices were to be raised in a systematic manner to completely eliminate subsidies. HPCL, Indian Oil and BPCL all saw their share prices rising sharply.
Banking shares came in for some selling pressure following the RBI Monetary Policy. Stocks from the PSU banking space saw some decent selling pressure. Next week we might see markets moving in a tight range and any sharp and swift gains may be unexpected.