This week was the first week of gains for the Sensex and the Nifty in Feb. Thursday was also the expiry and the Nifty ended the Feb series down more than 6 per cent, one of the worst F&O series fall seen in recent years.
Shares from the PSU banking spaces were in the limelight this week thanks to the PNB fraud. Most of the stocks like Union Bank of India, PNB, United Bank of India, Corporation bank etc., hit fresh 2-week lows.
Shares of Sun pharma, the country's largest drug maker rose as much as 5 percent despite adverse developments. The pharmaceutical company received form 483 from the U.S. drug regulator with three observations for its key Halol plant, according to its stock exchange notification.
Shares in Gitanjali Gems were locked at the lower end of the circuit filter for five successive days following reports of links to Nirav Modi group of companies. Mehul Choksi, the uncle of Nirav Modi has denied charges. It maybe recalled that Nirav Modi group of companies have been linked to the PNB fraud amounting to Rs 11,000 crores.
Nest week markets may stay around the 34,000 levels on the Sensex. The markets have been seeing large scale buying from mutual funds, which are flush with funds. Rising bond yields have led to a fall in the markets to some extent with FPIs selling, though domestic institutions have been able to absorb. On Friday, they bought stocks aggregating nearly Rs 1500 crores.
They may defend the market against any sharp fall. If you are looking to buy into stock, you should remember that they are not very cheap. In all probability you may get lower levels at which the markets would become attractive all over again.