Equity market indices witnessed the first weekly decline in 3 weeks. Sens*x declined 0.6% for the week to close at 17460 against the last week's close of 17574.
After last Friday's decline, the week opened on a positive note but for the week hovered in a range. However bearish sentiments on the last two days took the indices in red.
Conference Board of US corrected its outlook for Chinese economy which led to about 3.36% decline in metal index. Moody's Investor service placed Spain's credit rating on review. There are concerns that country's credit rating will be downgraded. US ISG Manufacturing Index showed a possible decline in manufcturing activity. These factors led to selling in the market.
On domestic front, Indian exports for the month of May grew at 35% which added to the positive sentiments. Banking shares, as expected, traded with negative sentiment due to rate hike concerns. Low weekly inflaton figures however, relieved some of those concerns and created positive sentiments.
Two big stories of the week, rate hike by RBI (read MB update here) and the US Non farm payrolls (which shows a loss in jobs) report came in after market hours and thus these are not factored in this week's movement. Due to these factors, it is expected that markets would open weak on Monday but then will move in a rangebound manner.
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