The Rupee fell to 65.16 against the US dollar that too it’s lowest since March, before regaining over its preceding day’s close of 64.79. The yield on the Ten-year govt bond in intraday trade rose to 6.69%, the highest since May, before closing at 6.67%.
Meantime, the US dollar strength on the US Federal Reserve’s plan tends to shrink its balance sheet. North Korea’s new hydro bomb menace and S&P’s downgrade of China also spoiled investor sentiment towards emerging markets.
FPIs pulled out Rs 1242 crore from domestic stocks on Friday, while domestic investors buying was comparatively muted at Rs 520 crore. The India Volatility Index surged 10%.
On the week ended Friday, there were four falling stocks for each one advancing. The BSE Midcap index declined close to 3%. Real estate, Metals and realty were the worst performing sectors. Among Sensex stocks, Tata Steel plummeted about 5%, after base metal prices chopped down due to China downgrade. SBI and ICICI Bank fell about 2% each.
The benchmark indices BSE Sensex and the Nifty 50 index clocked impressive gains in the week ended Friday, 1 Sept 2017 on positive global cues. Except sharp losses on Tuesday, 29 August 2017, the two key indices registered modest gains in 4 trading days of the week.
Through the week, a stellar auto sales and cheering August manufacturing data supported investors put behind the unsatisfactory GDP numbers. The benchmark Sensex went up 162 points to end at 31,892.23 as a three-week high, whereas the Nifty closed short of 10,000. Broad market depicted strength. The BSE Mid-Cap index rose 2.84%. The BSE Small-Cap index advanced 3.09%.
Throughout the week following stocks captured attention:
Software major Infosys rose 0.83% at Rs 920.10. Wipro advanced 2.49% at Rs 296.80. Dr Reddy’s surged 6.2% at Rs 2,217.35. Lupin rose 0.18% at Rs 993.50. Maruti Suzuki India rose 2.77% at Rs 7,812.70. Bajaj Auto jumped 6.74% at Rs 2,918.65. Reliance Industries rose 2.68% at Rs 1,609.35. L&T rose 0.74% at Rs 1,139.70.
Market week ahead: A slew of companies will be announcing their April-June 2017 quarterly results next week, which include Skipper & Tamilnadu Petro products, Digjam and Indian Hume Pipe, Vaibhav Global and Honda Siel Power Products, Hotel Leela venture & UFO Moviez India.
Prevailing concern between the US and North Korea effected on Indian share markets as the Sensex and Nifty closed more than 1% lower. The Sensex lost 317 points, or 1%, to close at 31,213, and Nifty50 gave up the crucial 9800 mark to close at 9,710, going down 109 points, or 1.1%. This is the 5th consecutive session of falls for the Indian indices, clocking it the most awful weekly performance since February 2016. During the week, the Sensex fell a little over 5%, as per data indicated.
BSE Midcap & Smallcap closed flat outperforming the bench mark indices on Friday 11 Aug 2017. BSE Mid-cap was down 0.4%, and the BSE Small-cap remained unchanged. The Weekend fall was led by SBI, which dipped 5.36 % due to its increasing non-performing assets, while M&M fell 3.1% and Reliance Industries fell 2.4%.
Metal stocks were suffered most with the BSE Metal index falling 3.6%. Pharma stocks clocked gains with shares of Dr Reddy’s, Aurobindo Pharma gaining more than 3% each through the week. The Indian markets have come under selling pressure since worries between the US and North Korea burned up. It also got impacted global equities. The US index S&P 500 has lost 1.3% in the week so far while the FTSE and the Euro Stoxx were down by over 3% each.