Markets end in red for the second straight week

Markets ended in red for the second straight week due to weakness due to persistent selling pressure in view of disappointing earnings results from companies amidst weakness in the global market, as investors maintained caution ahead of elections in France over the weekend and as geopolitical tensions notably those between the US and North Korea weighed on sentiment. The Sensex fell in three out of five sessions of the week. As trading was largely listless and rangebound throughout the session.

The sensex dropped by 96.15 points or 0.33 per cent to close at 29,365.30 and the NSE 50-share Nifty fell by 31.40 points or 0.34 per cent to end at 9,119.40. The sensex has dropped by 341.31 points and NSE Nifty by 78.90 points in two weeks. Mr. Anupam Singhi, COO of William O’Neil India said, Benchmark indices continued to track weakness from global uncertainties and disappointing earnings results in this week. The indices extended their losses from last week, further widening the gap from their highs.

By the end of this week, the Nifty Midcap and Smallcap indices advanced 1.42 pct and 3.11 pct, respectively. In economic news, Wholesale Price Index inflation for the month of March, 2017 declined to 5.70 pct against 6.55 pct in February, 2017. The fall was mainly due to a decrease in mineral and fuel prices. Recapping trading activity on the bourses through the week, key indices piled up significant losses over last week’s decline in the first two trading sessions of the week. Negative global cues and anticipation of earnings updates kept the investors on sidelines.

On Monday, Indiabulls Real Estate was in spotlight after its management announced a business restructuring plan through a demerger of its segments. On Tuesday, negative breadth prevailed in the market.

On Wednesday, benchmark indices moved directionless from positive to negative zones and finally closed the day on a flat note. High price-volume activity was witnessed on individual stocks like Indusind Bank and Tata Consultancy Services. Thursday was the only positive day of the week, which helped major indices in trimming weekly losses. Banking shares came under pressure led by decline of Yes Bank after their result announcement and impending results of HDFC Bank.

Meanwhile, India Meteorological Department (IMD) in its first stage forecast of southwest monsoon for 2017, said that quantitatively, the monsoon seasonal rainfall is likely to be 96 per cent of the long period average (LPA) with an error of 5 per cent. Forecast assessment suggests 38 per cent of probability for near normal monsoon rainfall, it added.

Meanwhile, foreign portfolio investors (FPIs) and foreign institutional investors (FIIs) sold shares worth Rs 2,531.82 crore during the week, as per Sebi’s record including the provisional figure of April 21. In the broader market, buying activity continued in the side counters. The BSE Mid-Cap index rose 136.96 points or 0.95 per cent to settle at 14,487.92. The BSE Small-Cap index gained 285.15 points or 1.92 per cent to settle at 15,166.31. Both these indices outperformed the Sensex.

Among sectoral and industry indices, metal fell by 2.74 per cent followed by healthcare 2.21 per cent, bankex 1.19 per cent, FMCG 0.91 per cent, auto 0.61 per cent, IT 0.51 per cent, and teck 0.29 per cent, while realty rose by 11.45 per cent, followed by power 1.57 per cent, consumer durables 0.81 per cent, capital goods 0.71 per cent and oil&gas 0.48 per cent. Among the 30-share Sensex pack, 19 stocks fell and remaining 11 stocks gained during the week.

Shares of Sun Pharmaceutical Industries slumped by 5.27 per cent. The stock was the biggest loser from the Sensex pack. As per report the company has received 11 observations from the US drug regulator for its Dadra unit.

Axis Bank lost by 3.70 per cent. The bank announced that it has retained the marginal cost of funds based lending rates (MCLR) at the same levels across tenors. It was followed by Coal India 3.64 per cent, ICICI Bank 3.21 per cent, ONGC 3.05 per cent, Tata Steel 2.16 per cent, SBI 2.10 per cent, Tata Motors 1.98 per cent, HUL 1.29 per cent and Dr Reddy 0.96 per cent. However, Gail rose by 6.38 per cent followed by Power Grid 4.61 per cent, Adani Ports 3.51 per cent, HDFC 3.19 per cent, Maruti 3.01 per cent and HDFC Bank 1.25 per cent.

The total turnover during the week on BSE and NSE rose to Rs 22,545.35 crore and Rs 1,25,467.13 crore, respectively, as against last weekend’s level of Rs 15,016.25 crores and Rs 98,393.40 crores.