Markets weekly: Sensex sheds 198 points, Nifty settles below 8,800; Tata Steel, Yes Bank, Hindalco among top losers

The BSE Sensex and NSE Nifty ended the holiday truncated week on a disappointing note despite some recovery in the last three trading sessions. For the week ended September 16, the 30-share index shed 198.22 points or 0.69 per cent at 28599. Nifty 50 index also dropped by 86.85 points, or 0.98 per cent to 8779.85. The index was at 8866.70 on September 9. Market sentiments dampened on worries that the US Federal Reserve could be considering an imminent interest rate hike and a nuclear test by North Korea. Weak monsoon report for the month of September also impacted equity markets.

The last day of the week helped benchmark indices to wipe off some of the losses as markets got some boost after reports that Prime Minister Narendra Modi is targeting to roll out the ambitious GST on April 1 next year.

Among the 51-components in the Nifty 50 pack, 37 stocks ended the week in negative terrain with Tata Steel falling 9.06 per cent, followed by YES Bank (8.34 per cent), Hindalco Industries (down 7.88 per cent), Bharat Heavy Electricals Ltd (down 4.80 per cent), Mahindra & Mahindra (down 4.47 per cent) and Tata Motors (down 4.28 per cent). On the other hand, Maruti Suzuki India, Grasim Industries, Reliance Industries and Infosys gained 3.15 per cent, 3.12 per cent, 2.97 per cent and 2.38 per cent, respectively.

Jimeet Modi, CEO, SAMCO Securities said, “Nifty and Sensex opened the week sharply lower on fears of US interest rate hikes being real this time around. The indices again moved up when the fear faded away. The onset of high volatility is an indication that market is confused on the direction and is seeking external guidance for the next move.”

Sectorwise, the BSE Metal index, BSE Realty index and BSE Power index lost 5.67 per cent, 4.40 per cent and 3.26 per cent, respectively. The BSE IT index, BSE Teck index and BSE FMCG index gained 1.16 per cent, 0.92 per cent and 0.03 per cent, respectively.

Foreign portfolio investors stood net sellers in equity segment in the past four trading session with gross purchases of Rs 15,649.73 crore and gross sales of Rs 16,705.15 crore, leading to a net outflow of Rs 1,055.42 crore. However, they stood net buyers in the debt segment with gross purchases of Rs 5,032.65 crore against gross sales of Rs 4,982.31 crore, resulting in a net inflow of Rs 50.34 crore, according to the data available with corporate database Ace Equity.

For upcoming trading sessions, Rohit Gadia, founder and chief executive officer, CapitalVia Global Research said, “Investor is mainly waiting for the decision by Bank of Japan and Federal Reserve next week which is going to be a major mover of the investor sentiment going forward. The fed in its meeting which is scheduled on September 20-21 will provide summary of economic projection which could bring volatility in the market. Along with this the trend of oil price globally and how rupee trades against the dollar is going to be key. Key support from medium term perspective is at 8,700 and resistance is at 8,900 level.”