The headline indices Sensex and Nifty saw a breather on Friday on expectations of FPI tax roll back and some measures by the government to boost growth.
The headline indices Sensex and Nifty saw a breather on Friday on expectations of FPI tax roll back and some measures by the government to boost growth. The Sensex closed 228 points higher at 36,701.16 while the Nifty ended the session 88 points higher at 10,829. The gains come after reports of roll back of FPI tax and announcement that the finance minister would address the media in the evening fuelled speculations that the government would announce measures to support the sagging economy. Despite the rally, the market ended in the negative territory for second consecutive week, with the Sensex and Nifty correcting by more than 2% each. Notably, the Nifty Bank indiex slipped 4.5% in the week ended 23rd August, registering its biggest weekly fall in 11 months. Similarly, the Nifty Midcap index down is 3%, its biggest weekly fall in a month.
Taking stock of the ongoing plunge, Jimeet Modi, Founder & CEO, SAMCO Securities noted that the Indian markets had fallen by 2.6% in the month of August, while the Chinese market which is considered to be the most affected by trade war, had fallen by only 0.39%. Notably, Yes Bank (25% down), Indiabulls Housing (15% down), IndusInd Bank (9% down), Tata Motors (8.5% down) and Ultratech (8.2% down) were the biggest losers in the week. On the other hand, Maruti Suzuki (5% up), TCS (3.8% up), Infosys (3.57% up), Sun Pharma (3.16% up) were the biggest Nifty gainers for the week.
According to Shrikant Chouhan, Head Technical Research, Kotak Securities markets have reached lowest levels and chances of pulling partial losses are bright. “We could expect 11,100 on the minimum side. Bank Nifty is most sensitive index to the news flow on the FPI front that should do well on Monday,” Chouhan said in a note.