Overall market sentiments remained cautious on account of F&O expiry, Railway Budget and Economic Survey.
In an eventful week, bear-hug once again gripped benchmark indices BSE Sensex and NSE Nifty as they fell over 2 per cent in the past five trading sessions. For the week ended Feb 26, the 30-share index Sensex shed 555 points to 23,154.30, while the 50-share index Nifty closed 181 points lower at 7,029.75.
Overall market sentiments remained cautious on account of F&O expiry, Railway Budget and Economic Survey. All eyes now will be on the Union Budget 2016, scheduled to be presented on February 29.
In the Nifty 50 pack, share price of Bajaj Auto tanked the most — 8.82 per cent, followed by ICICI Bank (down 6.94 per cent), ACC (down 6.73 per cent) and Gail (down 6.40 per cent). On the other hand, Hindustan Unilever and ONGC gained 2.34 per cent and 1.99 per cent, respectively, for the week ended February 26.
Sectorwise, the BSE Power index, BSE Bankex, BSE Capital Goods index plunged 4.25 per cent, 3.85 per cent and 3.80 per cent, respectively, during the weekly under review. Rest all other sectoral indices also settled the week below the neutral line.
Gaurav Jain, director, Hem Securities, said, “Markets close the week more than 2 per cent lower driven by profit booking, disappointing Rail Budget, intensified selling pressure, weak rupee and slumping crude oil prices. However, macroeconomic survey lifted the sentiment later in the week. Volatility increased on account of expiry of derivatives contracts.”
The budget session of Parliament commenced earlier in the week, which along with derivatives expiry on Thursday lent volatility to the markets. Railway Minister Suresh Prabhu unveiled the Rail Budget 2016-17, which failed to enthused investors. As a result, railway-linked stocks such as Kalindee Rail Nirman (Engineers) and Titagarh Wagons tanked 30.71 per cent and 33.08 per cent during the week under review. Texmaco Rail and Stone India also retreated by 31.09 per cent and 20.23 per cent during Feb 19 and Feb 26.
Economic Survey that was tabled on Friday indicated that fiscal deficit target in the current financial year is likely to be met. The survey also stated that Indian stocks are relatively resilient despite volatility in the worldwide financial markets and the country can become a leading investment destination going ahead.
Kamlesh Rao, chief executive officer, Kotak Securities, said, “All-in-all, the Economic Survey paints a realistic picture on growth and inflation, which is a departure from previous surveys. If the Finance Minister is able to target a fiscal deficit of 3.5 per cent based on achievable and reasonable assumptions, it will be a positive for the markets.”
Indian rupee slid 0.41 per cent to 68.77 on February 26 from 68.49 levels on Feb 18 last week. FIIs were looking standing on the sidelines, neither buying nor selling substantially. They offloaded shares worth of Rs 433.99 crore in the past four trading sessions.
For the upcoming trading session on Monday, Jayant Manglik, president, retail distribution, Religare Securities, said, “With all eyes glued on the Union Budget, market participants will react strongly to the event on Monday as mostly hoping for some concrete steps from the government to boost the investors’ sentiment. Though it’s not new for traders but we advise them to remain extra careful due to prevailing down trend. It’s better to prepare beforehand and keep the risk management tools in place.”