Mumbai, Oct 18 Indian equities markets saw a volatile trade session ended Oct 17, with the main index losing around 0.71 percent due to fears of a slow global economic recovery and anxiety over the on-going results season.
“Global markets during the week were reeled under weak economic data sparking concerns on the growth outlook. Reducing inflation, lower commodity prices and expected reforms push remain significant tailwinds for the markets,” said Sanjeev Zarbade, vice president, private client group research, Kotak Securities.
“Investors should continue to take advantage of the market weakness to buy into good quality stocks.”
The benchmark Sensex was down by 0.71 percent in the week ended Oct 17 from its previous weekly close on Oct 10. The index closed at 26,108.53 points, while it had ended trade at 26,297.38 points on Oct 10.
The 30-scrip sensitive index had lost 1.01 percent in the week ended Oct 10 from its previous weekly close on Oct 1. The index that time had closed at 26,297.38 points, while it had ended trade at 26,567.99 points on Oct 1.
The week under review saw selling pressure gaining momentum after US and European markets came under stress which partly reflected the lingering concerns about global economic growth and monetary policy divergence.
European markets were tempered by scepticism about the European Central Bank’s promise of further measures to bolster the region’s sluggish economy, even as Germany headed for recession.
Last week economic data showed that Germany industrial output figures had fallen to its lowest ever mark in the last five and a half years.
Back home, Indian markets tracking global cues fell. Companies seen most exposed to the global economy such as Hindalco Industries and Sesa Sterlite declined tracking downturn in global markets.
Due to negative global cues the foreign investors went on a selling spree by shedding-off shares worth $371.91 million.
For the week ended Oct 17, the FPIs massively sold stocks worth Rs.2,968.55 crore or $371.91 million, according to data with the National Securities Depository Limited (NSDL).
“Buying by foreign investors has also weakened in recent days which is having its downward impact on the INR. The performance of the Indian equities remains contingent on resumption of FII flows,” Zarbade said.
For the week ended Oct 10, the FPIs had massively sold stocks worth Rs.1,231.28 crore or $200.33 million.
The foreign institutional investors (FIIs) along with sub-accounts and qualified foreign investors have been clubbed together by market regulator Securities and Exchange Board of India (SEBI)to create a new investor category called FPIs.
The FPIs were net-sellers Friday. They sold shares worth $178.45 million, or Rs.1,097.11 crore, on Oct 17.
The markets were volatile through out the week on Monday it gained 86.69 points or 0.33 percent, On Tuesday it closed flat down 35 points or 0.13 percent. Thursday had market the biggest fall in a months time for the Sensex which went down 350 points or 1.33 percent.
However, the markets on Friday closed 109.19 points or 0.42 percent up due to healthy buying in bank,capital goods and consumer durables stocks gained.
The 30-scrip Sensex, which opened at 25,950 points, closed the day’s trade at 26,108.53 points, up 109.19 points or 0.42 percent from the previous day’s close at 25,999.34 points.
The major Sensex gainers on Friday were: BHEL, up 3.40 percent at Rs.226.55; Hero MotoCorp, up 3.05 percent at Rs.2,877.10; HDFC Bank, up 3.04 percent at Rs.885.30; Mahindra and Mahindra (M&M) up 2.88 percent at Rs.1,253.95; and ICICI Bank, up 2.86 percent at Rs.1,505.60.
The losers were: Tata Consultancy Services (TCS), down 8.73 percent at Rs.2,444.90; Sesa Sterlite, down 2.76 percent at Rs.232.75; Hindalco Inds, down 2.24 percent at Rs.139.70; Tata Motors, down 1.66 percent at Rs.475.75; and Wipro, down 1.08 percent at Rs.565.80.