Indian indices:

Welcome to the ‘Weekly Market Wrap’ for July 11, 2014 where key benchmark indices slumped last week as investors booked profit after a strong rally in the past few months. An upward momentum in Indian shares kicked off after BJP led NDA government won a thumping victory in general election in May this year. Investors build up position in the equity market ahead of the Union Budget 2014-15 on expectations of far-reaching reforms.
Modi government's maiden Budget on Thursday, 10 July 2014, fell short of the hype. It lacked any major policy reforms and roadmap for reduction of subsidies. But Narendra Modi's administration earmarked substantial sums for new infrastructure, which should revitalise growth. Finance Minster Arun Jaitley made a number of announcements in Budget such as a proposal to increase in foreign direct investment in insurance and defence manufacturing, a sharp increase in plan expenditure, measures to boost long-term financing for infrastructure by banks and provided clarity on taxation with respect to foreign portfolio investors. But, market expectations that the Finance Minster would scrap the law on retrospective taxation were not met. Government spending on plan expenditure was substantially increased to support growth.
The S&P BSE Mid-Cap index fell 670.51 points or 7.02% to 8,875.24 and the S&P BSE Small-Cap index fell 819.92 points or 7.80% to 9,688.11. Both these indices underperformed the Sensex.
The S&P BSE Sensex fell 937.71 points or 3.61% to 25,024.35. The 50-unit CNX Nifty fell 292 points or 3.77% to 7,459.60.

Weekly market trend from July 07 – July 11:

July 07- India's NSE index rose on Monday to a third consecutive record high, while the benchmark BSE index surpassed 26,000 points, riding on gains in technology stocks ahead of Infosys Ltd's results and hopes of a fiscally prudent budget. The BSE Sensex rose 0.53% and NSE Nifty gained 0.46% for the day. The Sensex closed at 26100.08, up by 138.02 points, while the Nifty rose 35.55 points to close at 7787.15
July 08- Indian shares fell more than 2 percent on Tuesday, marking their biggest single-day fall in over 10 months as a lower-than-expected railway budget outlay sparked worries about subdued government expenditure in the federal budget due on Thursday. The BSE Sensex fell 1.98% and NSE Nifty slipped 2.11% for the day. The Sensex closed at 25582.11, down by 517.97 points, while the Nifty fell 163.95 points to close at 7623.20
July 09- India's NSE index marked a 1-1/2 week closing low on Wednesday, continuing to retreat from the record high hit in the previous session, as investors pared positions in blue-chips such as Tata Motors ahead of the federal budget. The BSE Sensex fell 0.54% and NSE Nifty slipped 0.50% for the day. The Sensex closed at 25444.81, down by 137.30 points, while the Nifty fell 38.20 points to close at 7585.00
July 10- Indian shares edged lower in a volatile session on Thursday as Finance Minister Arun Jaitley's pledge to narrow the fiscal deficit and open up sectors such as insurance and defence were offset by disappointment over the lack of major reforms. The BSE Sensex fell 0.28% and NSE Nifty slipped 0.23% for the day. The Sensex closed at 25372.75, down by 72.06 points, while the Nifty fell 17.25 points to close at 7567.75
July 11- India's NSE index fell 1.4% on Friday to post its biggest weekly loss since March 2013 as blue chips were hit by a range of factors including profit-taking and disappointment over the budget's lack of specifics. The Sensex closed at 25024.35, down by 348.40 points, while the Nifty fell 108.15 points to close at 7459.60

Global indices:

Top Losers: CAC40 down 3.75%, DAX100 fell 3.50% and FTSE100 slipped 2.82%.

Sectoral and stock screening:

Top Gainers: S&P BSE FMCG up 1.47% and S&P BSE IT up 0.73%
Top Losers: S&P BSE Power down 10.16%, S&P BSE CG slipped 9.98% and S&P BSE Realty fell 9.18%
Looking at the 'A' group stocks, the top three gainers of the week were – Crisil up 11.28%, IDFC up 9.52%, Sun Pharma up 6.84%
Top three losers of the week were - Unitech fell by 26.93%, GMR Infra fell by 22.75% and JP Power down 21.40%.

FII/MF activity

The foreign institutional investors (FIIs) have been the net buyers of the Indian stocks to the tune of Rs2091.93 crore and the domestic investors bought Indian shares worth a net of Rs131.60 crore as on July 09, 2014.

Market outlook for the coming week!

In the coming week, selling may continue amid lack of any major event. There could be some stock-specific action based on April-June 2014 corporate earnings announcements.
Macroeconomic data, trend in investment by foreign portfolio investors (FPIs), trend in global markets, trend in other global emerging markets, the movement of rupee against the dollar and crude oil price movement hold key.
On the macro front, the government is scheduled to announce the rate of inflation based on the wholesale price index (WPI) for the month of June 2014 on 14 July 2014.