It was once again a very strong ending for the markets this week, with the Sensex and the Nifty gaining as much as 1.7 per cent, thus posting their best week in a month.
It was also the results season and individual stocks reacted to results. For example, ICICI Bank reacted to a set of results, which was of course poor. The company's net profits halved, but, the stock ended sharply higher, on hopes that the worst would be offer for the private sector bank.
Federal Bank was also in the news as quarterly numbers lagged estimates and the stock tanked 8 per cent on Thursday alone.
However, there was no luck for government owned banks, whose profits plunged. Union Bank lost heavy ground on Thursday and Friday and fell to Rs 84 levels - a level that is not seen in many years for the bank.
One stock that was the most volatile during the course of the week was PC Jeweller. The stock began trading on Monday at Rs 127 and recovered heavy ground to close the week at Rs 200.
The shares doubled investor wealth in just 5 trading sessions. The board of the company has approved a buyback of shares at a price of Rs 350. The promoters would not be participating in the buyback.
Shares in Vakrangee during the course of the week, continued to remain stuck at the lower end of the circuit filter. For all of the 5-trading sessions, the stock was at the lower end.
Canara Bank too saw some profit booking ahead of the company's quarterly numbers, which were out after market hours.
Going ahead, markets are likely to be extremely volatile, ahead of the Karnataka election results. Those who are looking to buy, would be taking a risk. However, it is largely anticipated that thereafter the markets would discount the results and move higher.
While most analysts are laying emphasis on the Karnataka elections, even a bad news for the NDA is going to have very little bearing on the market. This is because, the markets are flush with funds and this is going to push stocks higher. So, even if the verdict is a hung assembly, we are likely to see some drop, after which the markets are likely to recover on buying support from domestic institutions.
FPIs are likely to remain sellers in the market.