Weekly review: Volatile Sensex ends down

Volatility rules the roost this week, as Indian bourses took cues from global markets. Markets fell on most days to end with a loss of 0.5%.

The Sensex opened the week at 17,578 and touched a high of 17,795 on firm Asian stocks. However, it slipped on Tuesday on weakness in metal, banking and realty sectors. Index extended losses on Wednesday, touching a low of 17,374. However, it surged in late trades, thanks to buying in heavyweight, Reliance. Relentless selling in metal and realty stocks saw the markets dropping on Thursday. Friday saw the index ending on a flat note at 17,461.

Inflation eased 12.9% - declining 4 percebtage points due to a high base effect and timely arrival of monsoon rains. The inflation numbers are down from 16.9 per cent during the previous week as the rate of rise in prices of cereals, pulses and poultry showed major deceleration during the week under consideration.

India's May exports rose for the seventh straight month in May, growing an annual 35 per cent to $16.1 billion, the government said on Thursday.

BSE consumer durables index jumped 2.7% to 4,732, followed by the oil & gas and PSU indices. Oil index continues to gain from last week's decision to decontrol fuel prices.

Auto companies reported good sales numbers but the index ended flat at 8,184.

Metal index slumped 3.3% to 14,382 after the revised April 2010 gauge for the outlook of China's economy. IT index was down 1.6%, followed by healthcare and bankex.

PSU stocks led the gainers list. ONGC and NTPC jumped 3% each to Rs 1,305 and 202, respectively.

Reliance Infastrcuture gained 2.5% to Rs 1,197.

Larsen & Toubro, Hindustan Unilever, Maruti Suzuki and Bharti Airtel added around 1% each.

Among other gainers were Reliance and Tata Power.

However, metal stocks slumped. Sterlite shed 4.5% at Rs 161. Jindal Steel slipped 4.2% to Rs 616. Tata Steel and Hindalco dropped 3% each to Rs 475 and Rs 144, respectively.

Cipla slumped 3% to Rs 337. BHEL and TCS dropped 2.4% each to Rs 2,390 ad Rs 744, respectively.

ICICI Bank, HDFC Bank and SBI dropped 1-2% each. Mahindra & Mahindra was down 2% at Rs 602.

Infosys and Wipro slipped over 1% each. Realty stocks - DLF and Jaiprakash Associates were down 1.3% each at Rs 282 and Rs 127, respectively.

Reliance Communications and HDFC were the other losers.