BOMBAY, 27 July 2003 — The Indian stock markets behaved in the most quixotic manner this week. When almost all had predicted a week-long phase of “corrective” trading, the BSE bounced back with a vengeance after two days of towing the line.

On Monday, the bourses adorned the color red as sellers remained firmly in the driver’s seat. The BSE index dipped below 3,600 level and ended the day with a loss of 78 points at 3,569.58. Selling pressure continued almost unabated as investors, be it institutional or retail, booked profit.

Satyam Computer and HCL Technologies ended lower on sustained selling pressure amid fears of a slowdown in the profitability growth of tech companies.

FMCG stocks were in eye of storm today as the investors fretted about the growth prospects in these counters with HLL being the biggest loser. PSU stocks slipped amid the concerns over the progress of the government’s disinvestment process. The government recently shelved the proposed divestment of the aluminum PSU Nalco.

On Tuesday, selling pressure in Old Economy stocks dragged the BSE down and it ended the day with a loss of 15.45 points at 3,554.13.

Market punters confer that slowdown in the inflows from foreign institutional investors (FIIs) has affected the sentiment to a certain extent. FIIs have put in a net $322 million in Indian equities in July 2003 so far, after injecting $554 million in June 2003.

On Wednesday, after a four-session fall, the BSE finally gained 23.76 points to settle at 3,577.89. Market recovery was led by a rally in IT majors like Infosys Technologies and Satyam Computer.

Tisco was flat as its Q1 results were robust but below market expectations. Maruti Udyog was up following impressive results.

Cement stocks ended lower on sustained selling pressure.

On Thursday, the markets surged following a late afternoon rally in the index heavyweights like Reliance, HLL, ITC, and SBI. The BSE was up 90.18 points, ending the day at 3,668.07. The market sentiment got a boost following encouraging results from Satyam, Great Eastern Shipping, SBI, ACC, and Ranbaxy.

And on Friday, after a quiet opening, the index gathered steam as the heavyweights propelled the Sensex above the 3,700 mark. The Sensex closed up 58.39 points at 3,726.46 . Buying interest gained momentum in the Old Economy and heavyweight stocks.

Banking sector pivotals notched up modest gains following reports that an internal committee set up by Finance Minister Jaswant Singh has observed that foreign direct investment (FDI) and foreign institutional investors’ (FIIs’) stakes in banks are distinct and has recommended that the two be treated separately.

ITC pared gains after the tobacco major posted a net profit of Rs.3,972.2 million for Q1.

Reliance Industries recovered from its low to touch its new 52-week high of Rs.349.80 following huge buying support from institutions.

Gold was at Rs.5,485/- per 10 gms and silver was at Rs.6,080/- per kg.

US dollar against Indian rupee was at Rs.46.28, pound sterling at Rs.74.58, euro at Rs.52.63, UAE dirham at Rs.12.53, Kuwait dinar at Rs.153.86, Bahrain dinar at Rs.122.09, Saudi Riyal at Rs.12.27, Qatar riyal at Rs.12.65 and Oman Riyal at Rs.119.56.