Domestic equity markets extended their losses for the third consecutive week as the key benchmark indices plunged over 3.5 per cent for the week ended August 28. During the week, the BSE Sensex and NSE Nifty lost 973.69 points and 298 points at 26,392.38 and 8,001.95 respectively.
Among the sectoral indices on the Bombay Stock Exchange (BSE), the BSE Capital Goods index slid the most — 6.09 per cent at 16,326.03, it was followed by the BSE Bankex (down 4.76 per cent), BSE Healthcare index (down 4.31 per cent), BSE Auto index (down 4.21 per cent) and BSE Power index (down 4.03 per cent). On the other hand, BSE Metal index ended flat at 7,401.72.
In the 30-share Sensex, Maruti Suzuki, Larsen and Toubro and Gail (India) slid 7.90 per cent, 7.08 per cent and 7.07 per cent, respectively, during the week. Coal India (up 2.49 per cent), Tata Motors (up 2.30 per cent) and Vedanta (up 1.69 per cent) were the only gainers during the week gone by.
Jimeet Modi, chief executive officer, SAMCO Securities, said, “Markets across the globe fell like crumbling house of cards scaring bulls worldwide. The trigger of yuan devaluation sent emerging market currencies into tailspin including rupee leading to outflow of funds from India and other emerging markets. FIIs have sold stocks worth 2 billion dollars since the beginning of the month.”
In the BSE 100 index, Cipla, ABB India, HDFC Bank, Ashok Leyland, Eicher Motors, Zee Entertainment and IndusInd Bank hit their new 52-low during the week.
IOC follow-on public offer (FPO) for Rs 9,500 crore was 80 per cent subscribed by LIC highlighting the fact that government will have to re-work its divestment strategy for future course of action. IPO of Power Mach listed below the issue price signaling that the secondary market is still not ready to absorb IPO’s in large numbers.
On August 24, the BSE Sensex witnessed its largest one day fall in absolute terms with the BSE Sensex falling 1,624.51 points, or 5.94 per cent at 25,741.56. For the further movement, Shreyash Devalkar, fund manager, equities, BNP Paribas Mutual Fund, said, “While the recovery from the manic Monday is now more than halfway through, we are not yet out of the woods. The vulnerability in the markets is there and is expected to continue for some more time.”
Vivek Gupta, CMT, director research, CapitalVia Global Research, said, “Movement of index in near term will depend on further reform initiatives to be taken by the government.”
Asian peers, Nikkei, Hang Seng and Shanghai fell 4.43 per cent, 2.54 per cent and 12 per cent during August 21 and August 27.