There are so many factors that have been influencing the market sentiment. Though the Sensex is not in perfect correlation with the Nasdaq, the fact cannot be ruled out that, in most cases, the day Nasdaq closes high, the markets here open positively. The apprehensions regarding the interest rates in the US was responsible for the Nasdaq movement to whose tune the domestic tech stocks danced for a while.

The rupee depreciation also led the tech scrips on account that it could attract more foreign investments. With the expectation of the rupee going down further, the tech stocks could remain attractive.

In the case of Satyam, the story was entirely different. The scrip moved northwards on account of its announcements of many new ventures. For more details on the Satyam story, click here

A look at how exactly the market has been moving over the last two weeks may give a clearer picture.

Last week started off with high volatility with the announcement of Satyam’s acquisition of a stake in cricinfo.com. The markets had opened high also on account of Nasdaq’s higher closing by 231 points on Friday. FIIs and Institutional Investors chased the New economy stocks at the start and soon followed the old economy stocks too. Most of these stocks had touched the ceiling. But, by the end of the day, the old economy stocks lost ground on account of profit booking.

Two days later, buying interest was seen in the old economy stocks. Following the correction in the Nasdaq, the tech stocks were down. The next day, the trend just reversed with the new economy stocks picking up on account of the gain in Nasdaq. Throughout the day, the sentiments remained high with heavy buying. Adding to this was the further rupee depreciation. Tech, telecom, media, pharma, cement, refinery and other sectors too were either steady or circuit breakers.

On the closing day of last week, the FII interest had shifted to old economy stocks, which closed firm by the end of the day. The tech stocks saw profit booking, which pulled down the Sensex by the end of the day.

Coming to the week that just closed, market was expecting a correction in the tech stocks which had seen an upward rally in the last few weeks. And so it happened. The market opened weak and the new economy stocks saw profit booking. The old economy stocks continued to be the buying favorites.

The intra-day volatility was high on Tuesday with profit booking on most of the sectors in the first half. By the end of the day, some recovery was seen. However, the Sensex closed 84 points lower as compared to Monday. The next day saw mixed trends in both the key sectors.

Last two days of the week saw fresh buying firming the market. New economy stocks were back in the limelight. While Thursday saw mixed trend of the sort, on the settlement day, the markets closed firm. FIIs had placed a buy order of 2 lakh shares of Infosys. The trend was positive and so was the mood at the closing.