After a roller-coaster ride over the five trading sessions, the benchmark equity indices ended the week on a flat note. The Sensex slipped 30.96 points, or 0.04%, in the week ended March 20, while the Nifty declined 36.60 points, or 0.16%.
Starting the week on a strong note, the benchmarks rose over 1% on Monday as value buying emerged following the sharp fall in the previous sessions. The upward momentum continued over the next two sessions, with gains of up to 0.75% on Tuesday and 0.83% on Wednesday. However, on Thursday, the indices snapped a three-day gaining streak, plunging over 3% as Brent crude prices surged to $119 per barrel amid escalating tensions in West Asia. On Friday, the Sensex rebounded by 325.72 points, or 0.44%, to close at 74,532.96, while the Nifty rose 112.35 points, or 0.49%, to end at 23,114.50.
Crude Shock
The broader indices showed mixed performance during the week, with the BSE Midcap declining marginally by 0.04%, while the BSE Smallcap posted a modest gain of 0.13%.
“Market sentiment remained cautious amid persistent Middle East tensions, elevated crude oil prices, and continued FII selling,” said Vinod Nair, Head of Research, Geojit Investments.
Although domestic equities witnessed a brief relief-led recovery early in the week on the back of attractive valuations and short covering, the rally reversed sharply as renewed attacks in the Middle East pushed crude prices higher, reviving concerns over inflation and macroeconomic stability, Nair added.
Brent crude prices trended higher during the week, while the rupee depreciated to fresh lows, adding further pressure on risk assets.
Institutional Tug-of-War
Investors’ wealth declined by Rs 70,765 crore during the week to Rs 429.11 lakh crore. Foreign portfolio investors (FPIs) sold shares worth $3.2 billion (Rs 30,167 crore), while domestic institutional investors (DIIs) bought shares worth Rs 30,642 crore during the week ended March 20. On Friday, FPIs offloaded shares worth $589 million (Rs 5,518.39 crore), while DIIs purchased equities worth Rs 5,706.23 crore, as per provisional exchange data.
On the sectoral front, oil & gas, healthcare, realty, energy, and FMCG emerged as the top losers, while telecom, auto, metals, consumer discretionary, and PSU banks were among the top gainers during the week.
HDFC Bank was the top loser among Sensex stocks, declining 4.47% during the week. The stock fell over 5% on Thursday following the sudden exit of its Chairman. HUL, BEL, Bajaj Finance, and Bajaj Finserv were the other major laggards, declining by up to 3.55%.
On the other hand, Eternal, Tata Steel, Tech Mahindra, M&M, and UltraTech Cement were the top Sensex gainers during the week, rising by up to 7.55%.
“The near-term trend for the Nifty remains weak, and the current bounce could be a ‘sell-on-rise’ opportunity. A breach below 22,900 may open the door for a further downside towards 22,500, while immediate resistance is seen at 23,380,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.