Early on D-Street: Below 11,990, correction in Nifty shall get accelerated further

The Indian markets witnessed a historical week as both Sensex and Nifty hit fresh record highs and closed the week with gains of over 1 percent each. The big returns, however, came from the small and mid-cap space.

The Sensex rose 1.08 percent while the Nifty gained 1.19 percent in the week ended November 29, compared to 0.78 percent rise in the S&P BSE small-cap index, and 2.3 percent rally in the mid-cap index in the same period.

The BSE 500 index, which measures the stock performance of 500 large companies listed on stock exchanges in India, rose 1.38 percent outperforming both the Sensex and Nifty for the week ended November 29.

As many as 23 stocks in the BSE 500 index, including companies from both the small and mid-cap space, rose 10-40 percent in just five trading sessions.

On the macro front, Foreign exchange reserves continued the upward move, gaining by a modest $347 million to touch a new high of $448.6 billion in the week to November 22, according to the weekly data released by the Reserve Bank on November 29.

The output of eight core infrastructure industries contracted by 5.8 percent in October, indicating the severity of economic slowdown, according to the government data released on November 29.