The Indian stock markets showed tepid signs of revival on Friday, with the Sensex gaining 0.15% and the Nifty 0.07%, after turning bearish on Thursday.
The week ended with the Sensex closing at 22,986.12, down 1,631 points or 6.6%, while the Nifty closed at 6,980.95, losing 508 points or 6.8%, amid a huge market sell-off globally and the weakening rupee.
All of the core Sensex stocks except Bharti Airtel ended up in red for the week. Bharat Heavy Electricals (BHEL), after posting a loss of nearly Rs 1,102 crore, plunged 13%, while Oil and Natural Gas Corporation (ONGC) fell more than 4% after reporting a 64% drop in its net profit following sliding crude oil prices.
The worst performing sector in the week was BSE Realty, which lost 11.35% with companies like DB Realty closing 9.22% lower and HDIL closing 5.96% lower at the end of the week.
Whereas BSE Metal, Oil & Gas and Consumer Goods fell more than 8%, the banking indices on both exchanges showed a fall of over 7% through the week.
“During the time when results of companies are being announced, a lot of activity around those specific stocks is clearly visible”, said Rikesh Parikh, vice-president, institution corporate broking, Motilal Oswal Financial Services.
Concerns over the health of public sector banks brought down the BSE Bankex by nearly 7.68% while the Bank Nifty showed a decline of 7.85% this week.
Increasing non performing assets (NPAs), higher provisioning as asked by RBI guideline and poor bottomlines posted by a number of prominent PSBs brought down the indices.
Foreign portfolio investors (FPIs) sold close to $409 million while domestic investors bought equities worth Rs 269 crore this week. FPIs were on a major selling spree, selling close to $177 million worth of equities on Thursday alone. Domestic investors turned buyers on Thursday and bought equities worth Rs 1,222 crore.
The Indian rupee weakened by 29 paise, completing its biggest weekly decline since mid-January, and closed at 68.23 against the dollar on Friday. The rupee also turned out to be Asia’s worst performer this year after foreign funds exited amid global risk aversion.