Benchmark indices BSE Sensex and NSE Nifty kicked off the week on a negative note in absence of any major trigger and in the back-drop of derivatives expiry on Thursday. Bears dominated bulls in the last few trading sessions as the 30-share index closed 294.75 points, or 1.05 per cent, down at 27,782.25 for the choppy week ended August 26, 2016. Likewise, the 50-share Nifty index closed 94.35 points down at 1.09 per cent down at 8572.55. Selling pressure in capital goods, metal, realty and power stocks further dented market sentiments.
Other than the BSE Consumer Durables index (up 0.82 per cent) and BSE Oil & Gas index (up 0.54 per cent), all other sectoral indices ended the week in red. The BSE Capital Goods index, BSE Metal index, BSE Realty and BSE Power index slipped by 2.99 per cent, 2.70 per cent, 1.96 per cent and 1.88 per cent, respectively.
In the Nifty 50-index, GAIL (India), Aurobindo Pharma, Eicher Motors, Cipla and Reliance Industries gained 3.66 per cent, 3.18 per cent, 2.31 per cent, 1.87 per cent and 1.15 per cent during the week. On the flip side, Adani Ports, Tata Steel, Wipro, NTPC and State Bank of India slipped by 6.06 per cent, 5.90 per cent, 5.79 per cent, 5.31 per cent and 4.70 per cent, respectively.
Vinod Nair, head of research, Geojit BNP Paribas Financial Services said, “Domestic equity markets started the week on a weak note. The rupee weakened and bond yield rose since the prospects to cut interest rate in the near-term vanished. This is because the new RBI governor, Urijit Patel is an insider from the existing RBI’s core team, hence the long-term policy will continue while the immediate focus will be to contain inflation which has increased to 6.1 per cent, 23-months high.”
According to the data avialable with a corporate database Ace Equty, foreign Institutional Investors (FIIs) stood net buyers in equity segment in the week with gross purchases of Rs 20,154.42 crore and gross sales of Rs 20,055.66 crore, leading to a net inflow of Rs 98.76 crore. However, they stood as net sellers in the debt segment with gross purchases of Rs 7,214.12 crore against gross sales of Rs 7,939.51 crore, resulting in a net outflow of Rs 725.39 crore.
Rupee depreciated by 0.14 per cent to 67.03 on August 26 from 66.93 on August 19, according to the data available with RBI.
Next week, markets may first react to the Federal Reserve Chair Janet Yellen’s speech, which may shed light on the US interest-rate outlook.