An eventful week for the Indian markets ended on a negative note, snapping the sequence of four consecutive weeks of gains. Though the global markets seemed to lend some support, domestic cues remained benign and the markets thus cooled off.

Volatility ruled the roost as companies disclosed their quarterly numbers in the derivative expiry week. Resultantly, the stock prices of most companies dipped sharply post the announcement of weak numbers. However, with the overhang of the interest rate hike out of the way, banking stocks displayed strong resilience. This was also aided by the dip in inflation to single digit levels again.

The Oil & Gas sector was a major loser during the week with Reliance Industries leading the pack. Realty, FMCG, Capital Goods and IT stocks too ceded ground.

There was also big action in the primary market with the high profile PSU FPO of EIL and the IPO of SKS Microfinance attracting huge institutional investments.

The resultant overhang and aggressive profit booking thus cast its shadow on the secondary market in the week gone by.

The derivatives expiry week was witness to large rollovers indicating that the bulls expect the rally to continue. However, institutional sales data points to the contrary.

Notably, it is the FIIs that have sustained the Indian markets as they have bought stocks worth more than Rs.8000 crore this month, absorbing selling by the Domestic Institutional Investors (DIIs).

With the results of most frontline stocks already declared, the market will now need fresh triggers to sustain itself at current levels.

The focus may once again shift to the action in the global markets which for now too seems to be in a consolidation mode. Meanwhile, even though the markets have been able to sustain its recent gains, the breakdown of the stock prices of some index heavyweights, suggests a level of anxiety in the market.

The Indian markets thus appear likely to consolidate in a range with a negative bias, as the overall sentiment is no longer one of optimism.