Markets at a glance

Markets went on an unchecked slide in a truncated week. The Sensex lost 257.47 points to a near two-month low closing level of 6442.87. Though FIIs bought equities worth Rs 180 crore in the first two sessions, they turned sellers to the tune of Rs 174 crore in the last two sessions.

Rising oil prices and a hike in US interest rates were said to be the main causes for the sell-off. Year-end winding up of positions by domestic investors also aided the fall.

The market's breadth remained negative with only five of the 30 Sensex stocks making gains. Selling pressure was evident across sectors, though there was some defensive buying in FMCG and pharma stocks.

Banking scrips were the worst hit, with leading stocks like ICICI Bank (down 5.45 per cent at Rs 390.55), SBI (down 8.56 per cent at Rs 665.70) and HDFC Bank (down 8.32 per cent at Rs 519), among the leading losers.

Infosys and Reliance Industries were also among the declines. The losses in these two counters amounted to combined erosion of more than 30 points from the index.

Telecom stock Bharti Tele was the leading contributor to the index as the stock recovered from the previous week's losses. ITC, HLL, Dr Reddy's Labs and Hero Honda were among the gainers.

All sectoral indices ended with losses. The BSE Consumer Durables Index was the worst hit, shedding 7.08 per cent. Big losses in Titan Industries, Mirc Electronics and BPL also contributed to the index's fall.

The BSE PSU Index, the BSE Bankex and the BSE Metal Index also posted losses of more than 6 per cent. While losses in ONGC, NTPC and SBI were largely responsible for the fall in the BSE PSU Index; declines in SBI, ICICI Bank and HDFC Bank led to the loss in the BSE Bankex.

The BSE FMCG index also ended up with a loss of 1.07 per cent, though gains in leading stocks like ITC and HLL limited the slide.

US markets ended the week with losses. While the Nasdaq ended with a 1.26 per cent loss at 1991.06, the broader Dow Jones Industrial closed with a 1.73 per cent fall at 10442.87.

The downtrend at US bourses was mainly on worries about inflation and rising interest rates after the Federal Reserve suggested that it would speed up the pace of its rate-hiking campaign, keeping in mind concerns about inflation.

Investor sentiment was cautious ahead of the three-day weekend. Meanwhile, crude oil prices slipped, whereas the dollar strengthened.

What to expect this week
Declining FII inflows and a rise in the US dollar are likely to keep the sentiment in check. Inflation worries, which are proving a drag on international markets, could leave a trickle-down effect on domestic markets.

However, one positive aspect could be the decline in crude prices. In what is likely to be another boost to the markets, the contract size of F&O lots will be reduced from April 1. However, the impending expiry of the March contracts may lead to volatility.

Stock of the week
Carborundum Universal Last week's close (Rs) 120.23 Prev. week's close (Rs) 110.75 Week's high (Rs) 127.38 Week's low (Rs) 105.25 Last week's ave. daily turnover (Rs cr) 1.60 Prev. week's ave. daily turnover (Rs cr) 0.34 Number of up/down move 2/2

One of the leaders in the domestic abrasives market, Carborundum Universal of the Murugappa Group, registered a healthy rise last week, even as the markets headed downward.

Ahead of the announcement that the company may consider a bonus issue and declare dividend, the stock price ran up in anticipation of good corporate results.

The stock touched Rs 127, almost hitting its circuit limit before finally closing the week at Rs 120.23, which is 8.5 per cent higher than its previous week's close.

It has almost fallen more than half its price since last year. The company is expected to perform well since its user industries like engineering, sugar and fertilisers are on an uptrend.