In fact, several stocks from the mid cap space saw deep cuts on Friday. Unitech was down a huge 6 per cent, Syndicate Bank (6 per cent), NHPC (6 per cent) and HPCL (8 per cent).

PSU banking stocks which have seen some healthy buying in the last few weeks came in for some severe selling pressure. Notable losers from the space were Bank of India, Allahabad Bank, Andhra Bank and Syndicate Bank.

Economic data that came in this week was largely heartening. Factory output rose to a 13-month high of 3.1 per cent, while CPI Inflation dropped.

As we head into the next week the only concern the markets would have would be with regards to Iraq. The CNN has reported that militants, backed by Sunni tribal leaders, were pushing towards Baghdad. If the present escalation continues, particularly with a threat to crude oil facilities across the country, markets across the globe might tank, leave alone India.

Another important aspect that cannot be altogether ignored is the threat of a deficit monsoon. Until June 11, the monsoon rains were reportedly 48 per cent below normal. One hopes that the same trend does not continue as it could lead to a sell-off in the markets.

The markets have run-up too fast and they need to cool a little. At this juncture it's best to partially book profits and wait for a more opportune times to invest in equities.

GoodReturns.in