Sensex fails to maintain 30K level on fag-end selling pressure

Stocks: The S&P BSE benchmark sensex failed to maintain 30K level and Nifty also tumbled from all-time high level due to fag-end selling pressure after the news of US striking Syria. In this week, major indices trimmed their gains due to weak global cues. The Sensex and the Nifty gave up majority of the week’s gains after the news of U.S. striking Syria came out on Friday. Heavy distribution was observed in the final trading session of the week which shrunk the gains accumulated from the first two sessions.

Mr. Anupam Singhi, COO of William O’Neil India said, Despite the US strike news the Nifty and the Sensex ended the week with increments of 0.27 pct to 9,198.30 and 0.29 pct to 29,706.61 respectively. The sensex crossed 30K level during the week on April 5 after two years.

Market momentum during this week was underpinned by solid performance by the realty and energy shares. Top three sectoral indices in the week were Nifty Realty, Energy and Auto gaining 4.49 pct, 3.49 pct and 1.15 pct, respectively. On the negative end, Nifty IT, FMCG, PSU Bank and Pharma indices recorded losses over one pct, restricting the overall market movement.

On the economic front, Manufacturing PMI for the month of March increased to 52.5 from 50.7 in February. On the other hand Services PMI for March came at 51.5 following its level of 50.3 in February. These economic metrics have shown continuous improvement in the last three months after November’s demonetization move.

Looking back at the market action in this week, the Indian market started the week and FY 2018 with a bang, as both the major indices reached their all-time closing highs. After a trading off on Tuesday, markets witnessed cautious trading keeping the bi-monthly RBI policy review in view. However, the key indices extended gains on Wednesday in a range bound session.

On Thursday, frontline indices came under pressure right from the start of the session. The Monetary Policy Committee decided to leave the repo rate unchanged at 6.25 pct and hiked reverse repo rate by 25 basis points to 6 pct. However, after the Committee’s announcement, indices trimmed intraday losses to end marginally lower.

Equities experienced a steep fall on the last day of the week, tracking weakness from negative global cues. Global markets put up a depressed picture after the U.S. fired cruise missiles into Syria.

Meanwhile, foreign portfolio investors (FPIs) and foreign institutional investors (FIIs) bought shares worth Rs 1,243.52 crore during the week, as per Sebi’s record including the provisional figure of April 7. Among the 30-share Sensex pack, 15 stocks ended higher while remaining 15 closed lower during the week. The total turnover during the week on BSE and NSE fell to Rs 16,104.66 crores and Rs 1,05,939.97 crores, respectively during the week from their last weekend’s level of Rs 52,203.39 crores and Rs 1,51,164.12 crores.

Among the major indices, S&P BSE Realty rose by 5.28 per cent followed by Captial Goods 4.92 pct, IPO 4.48 pct, Oil&Gas 2.92 pct, Consumer Durable 1.74 pct, Auto 1.01 pct, PSU 1.01 pct and Power 1.01 pct. However, IT fell by 2.10 per cent, Teck by 1.54 per cent and FMCG 0.92 per cent.

Major gainers from the sensex pack were Larsen 6.90 pct, Reliance Ind 6.55 pct followed by Maruti 3.98 pct, Gail India 2.68 pct, Axis Bank 2.65 pct, Adani Ports 2.22 pct, Tata Steel 2.12 pct, HUL 1.29 pct and ONFC 1.05 pct.

However, Infosys fell by 3.87 pct, Sun Pharma by 3.21 pct followed by Coal India 3.02 pct, ITC 2.75 pct, Lupin 2.38 pct, BhartiAirtel 1.56 pct, SBI 1.09 pct, HDFC 1.07 per cent and Powergrid 0.99 per cent.