Weekly Market Review: Sensex snaps four-week gaining streak; FIIs remain net buyers

Domestic equity indices BSE Sensex and NSE Nifty ended the week with marginal losses and also dipped for the first time in the past five weeks. For the week ended April 1, the BSE Sensex dropped 67.92 points or 0.26 per cent to 25,269.64, while NSE Nifty shed 3.45 points or 0.04 per cent to 7,713.05.

In the Nifty pack, share price of Bharti Airtel plummeted the most — 6.21 per cent, followed by Hindalco (down 5.42 per cent), Mahindra & Mahindra (down 4.53 per cent) and HDFC (down 4.09 per cent). On the other hand, Bank of Baroda, Tata Power and ITC gained 6.15 per cent, 4.23 per cent and 3.62 per cent, respectively.

Sectorwise, the BSE Telecom index, BSE Healthcare and BSE Metal index slid 3.28 per cent, 2.19 per cent and 2.02 per cent in the previous five trading sessions. The BSE Realty index and BSE Power index jumped 2.74 per cent and 2.65 per cent during the week.

Dipen Shah, senior vice-president and head of private client group research, Kotak Securities, said, “Markets ended the week flat, indicating consolidation post the sharp rise after budget. Expectations of rate cut by RBI led to consistent interest in the banking sector.” The BSE Bankex climbed 1.85 per cent this week.

In a scrip specific development, Tata Steel announced the sale of its iconic UK Steel business after a decade of losses on acquiring Corus, creating ripple effects across Europe, showcasing the precarious state of the steel industry. Shares of Tata Steel dipped 0.16 per cent during the week under review.

Shares of Bharat Wire Ropes and HealthCare Global also debuted the markets this week.

Foreign institutional investors remained net buyers in the equity markets as they bought shares worth of Rs 9973.41 crore during March 28 and April 1. Indian rupee appreciated by 0.79 per cent to 66.33 levels on March 31 from 66.86 on March 23.

Sensex ended financial year 2015-16 with a yearly plunge of 9.36 per cent, leaving investors poorer by nearly Rs 7 lakh crore as global headwinds and foreign fund outflows pounded domestic equities.

Moreover, in the first outflow of overseas funds from Indian capital markets in seven years, foreign investors took out an estimated Rs 18,000 crore during fiscal 2015-16.

Going ahead, markets will watch out for RBI monetary policy meeting on April 5, post which quarterly results will dictate the stock-specific trends. “We will watch out for legislative action in the second half of the budget session, which will have important implications for the market.” said Shah.