In a truncated week, key benchmark indices closed 1.4 per cent down on China worries following weak macro data, profit-booking and unwinding of positions on account of September derivative contracts expiry and continued fall in commodity prices. Market is closed on Friday on account of Eid.
The BSE Sensex and NSE Nifty closed 355.41 points and 113.40 points down at 25,863.50 and 7,868.50, respectively, for the week ended September 24.
In the 30-share index, Tata Motors fell the most — 7.54 per cent at Rs 303.65, followed by Coal India (down 7.13 per cent), Bharti Airtel (down 6.51 per cent) and Reliance Industries (down 6.39 per cent). On the other hand, Lupin, Maruti Suzuki India and Infosys jumped 4.95 per cent, 3.78 per cent and 3.32 per cent to Rs 1989.45, 4570.20 and Rs 1141.40, respectively, and remained top gainers on the performance chart of Sensex during the week.
Shreyash Devalkar, fund manager, BNP Paribas Mutual Fund, said, “It was a tumultuous week for global stock markets with volatility ruling the roost across the globe. Key global indices oscillated between the negative and positive zone as jittery investors reacted to disparate news flows emanating out of the US, China and Europe.”
Data coming out of China continues to stoke concerns about the health of the world’s second largest economy. A private sector survey in China showed that the country’s factory index in September unexpectedly shrank to a six-and-a-half year low.
Gaurav Jain, director, Hem Securities, said, “Concerns over China, profit booking and continued fall in commodity prices dented market mood this week.”
Rate sensitives banking, realty and auto stocks ended the week in red. The BSE Bankex, BSE Auto and BSE Realty declined 1.29 per cent, 1.45 per cent and 0.64 per cent at 19952.94, 17571.70 and 1328.25, respectively.
There are expectations in the market that the RBI in its monetary policy meeting next week on September 29 would reduce interest rates in India by at least 25 basis points, considering a moderating inflation environment and dovish statements by the Fed. The minister of state for finance, Jayant Sinha also reportedly said that there is a “favorable” environment for monetary policy action by the central bank.
Vaibhav Agrawal, vice-President and head research, Angel Broking, said, “We expect the RBI to cut domestic interest rates by 25 basis points this month. Although we may not want to bet on the timing, we believe the RBI has enough headroom to cut interest rates by 50-75 basis points over the next 6-9 months. Led by our expectations, we have a positive view on the banking sector and select plays in the infrastructure sector.”
Reports that Volkswagen, the automobile maker has cheated on vehicle emission tests, sparked a global selloff in auto stocks. On the home front, stocks like Bosch and Motherson Sumi were negatively impacted by this news. The share price of Motherson Sumi and Bosch Ltd declined over 10 per cent and 7 per cent, respectively, during the week.
Indian rupee declined 0.26 per cent to 66 on September 24 against the dollar from 65.9 on September 18.
Asian peers, Hang Seng and Shanghai slid 2.8 per cent while Shanghai gained marginally 0.58 per cent during September 18 and September 23.