The BSE Sensex and NSE Nifty index closed the week 0.59 per cent and 0.54 per cent lower at 28,067.31 and 8,518.55, respectively, on August 14.
Among the sectoral indices on the Bombay Stock Exchange, the BSE Metal index tanked the most 9.99 per cent during August 7 and August 14, it was followed by the BSE Oil & Gas index (down 4.61 per cent), BSE FMCG index (down 2.68 per cent) and BSE Power index (2.51 per cent). However, weaker rupee supported the BSE IT index as it gained 4.06 per cent in the week.
In the 50-share Nifty pack, shares of Vedanta, Hindalco Industries, Tata Motors and Tata Steel plunged 17.13 per cent, 15.11 per cent, 9.75 per cent and 9.37 per cent, respectively, for the week ended August 14. On the other hand, share prices of Lupin and Sun Pharma gained the most — 5.9 per cent and 5.62 per cent during the week.
During the week, Chinese central bank devalued yuan by 2 per cent and raised concerns of slow down in the economy and falling exports. On the domestic front, the monsoon session of Parliament ended on August 13, without passage of any major bills amid political tussle between the government and the opposition parties. All these events led to carnage on the Dalal street and Sensex fell during intra-week by 686 points or 2.5 per cent till Thursday, however, hopes of further rate cuts in the upcoming monetary policy supported market sentiments on Friday as the key benchmark index BSE Sensex jumped 517.78 points on the last day of the week.
Meanwhile, the government is reportedly preparing for a two-day session of Parliament in September to pass the Goods and Services Tax Bill ahead of the Bihar elections.
Jimeet Modi, chief executive officer, SAMCO Securities, said, “The pull back in the markets on Friday was largely due to the expectations of a rate cut due to the lower inflation data.”
Shreyash Devalkar, fund manager, equities, BNP Paribas Mutual Fund, said, “The week begun with Chinese currency devaluation. This led to a sharp downward movement in Asian currencies that took a beating and the Indian rupee was no exception. The markets recovered on Friday on expectations of a rate cut from RBI triggered by economic data released on inflation seeing moderation much ahead of estimates.”
During the week ONGC reported Q1 profit growth of 14 per cent year-on-year, HPCL reported Q1 profit growth of 3,349 per cent 14 per cent year-on-year backed by improved gross refining margins.
July CPI came down to 3.78 per cent while June IIP hit a four-month high at 3.8 per cent. Indirect tax collection surged by 39 per cent in July indicating that manufacturing and service sectors are growing.
“Sooner or later the stock market will recognise the fact of growth at the ground level, based on increased indirect tax collections, increasing IIP numbers and falling consumer price index and thereby again positioning itself for secular bull rally,” said Modi.