Sensex, Nifty end week 0.5% lower as US-China trade war, slowdown weigh; RIL, Zee gain up to 10%

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Published: August 16, 2019 4:50:11 PM

The headline indices Sensex and Nifty ended the holiday truncated 3-day week 0.6% lower, even as a confluence of domestic and global factors continued to weigh on the sentiment of stock market investors.

Over the last week, the Sensex lost 764.57 points or 2.01 per cent. (File photo)On Friday, the Sensex closed 38.80 points higher at 37,350.33, while the Nifty ended near the 11,050-mark.

The headline indices Sensex and Nifty ended the holiday truncated 3-day week 0.6% lower, even as a confluence of domestic and global factors continued to weigh on the sentiment of stock market investors. Notably, the week was truncated by 2 holidays as the BSE and NSE remained closed on Monday and Thursday on account of Bakrid and Independence Day respectively. On Friday, the Sensex closed 38.80 points higher at 37,350.33, while the Nifty ended near the 11,050-mark.  Yes Bank (3.79%), Powergrid (2.85%), Maruti Suzuki (2.74%) shares were among the biggest gainers in the Sensex pack. TCS (1.87% down), HCL Tech (1.31% down), VEDL (1.54% down) were among the top losers in the 30-share index.

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In the week, heavyweight Reliance Industries closed 10% higher following disruptive announcements made by billionaire Chairman Mukesh Ambani in the firm’s 42nd AGM held on Monday. The shares closed at Rs 1,277.40 on BSE this afternoon. Indiabulls Housing Finance, Zee Entertainment, GAIL, and Powergrid were among the other top gainers in the week, jumping up to 9.01%. Shares of Eicher Motors, Wipro, Adani, HDFC and NTPC were the top losers shedding up to 5.61% in the week ended 16th August. During the week, Sensex lost 231.58 points, or 0.60 per cent; while the NSE Nifty gave up 61.85 points, or 0.55 per cent.

According to experts, the market is unable to find fresh upside triggers. “The earnings season has ended and there are no fresh key domestic triggers. Hence, the focus will now shift to earnings recovery and investors will also take cues from global developments. Therefore, we maintain our cautious stance on the Indian markets in the near term. Investors would keep a close watch on progress on US-China trade talks, movement of crude oil price and rupee/dollar,” Ajit Mishra Vice President, Research, Religare Broking said. In view of fast-spreading slowdown in various sectors, the Indian government on Thursday reviewed the state of the economy, according to PTI.

The economic growth has slowed to 6.8% in 2018-19 – the slowest pace since 2014-15, consumer confidence is waning and foreign direct investment has plateaued. International trade and currency war is further aggravating the problem, noted the report. According to Sanjeev Zarbade, VP PCG Research, Kotak Securities, global markets are seen ending in the red for the week on lingering concerns of trade war, which is in turn taking a toll on the global investor confidence. “Easing of bond yields are pointing towards slowdown in global economy. Indian markets also ended lower this week on disappointing earnings and selling by FIIs. Devaluation of the Chinese Yuan is also making currencies of emerging markets nervous, which is also driving FIIs to sell emerging market equities in favor of safe assets like Gold and the USD,” noted the expert.  Meanwhile, the Indian rupee appreciated 15 paise to 71.12 against the US dollar intra-day.

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