After 5 weeks of gains, equity indices fall on global cues, weak rupee (Market Review)

Breaking a five-week gaining streak, the key Indian equity indices declined in the week ended Friday, with the Nifty50 of the National Stock Exchange (NSE) falling nearly one per cent.

The indices were weighed down by global factors including escalating trade war concerns and rising crude oil prices. Further, a weak Indian rupee also eroded the investor sentiments.

According to market observers, expiry of the June derivative contracts on Thursday also added to the volatility.

However, major losses made during the week were pared as value buying lifted the key indices over one per cent on Friday.

Index-wise, the wider Nifty50 of the NSE closed the week's trade at 10,714.30 points -- down 107.55 points or 0.99 per cent -- from its previous close.

The barometer 30-scrip Sensex of the BSE fell by 266.12 points or 0.75 per cent to close at 35,423.48 points on a weekly basis.

"In line with global trends, key indices tumbled last week on worries of escalating US-China trade war. Investors were concerned that trade tensions between the US and major trading partner such as China could develop into a big drag on the global economy," said Prateek Jain, Director of Hem Securities.

Equity99's Senior Research Analyst Rahul Sharma said: "Trading last week was volatile as traders rolled over positions in the F&O segment from the near month June 2018 series to July 2018 series."

Concerns of rising global crude oil prices increased pressure on India's macro-economic indicators and tightening monetary policy in major economies globally also led to outflows from emerging markets' debt and equity, Sharma added.

The depreciating rupee added to the dampened sentiments in the market. It touched and all-time low during the week by breaching the 69 per dollar mark on Thursday.

It closed at 68.47, weakening by 63 paise from its previous week's close of 67.84 per greenback.

In terms of investments, provisional figures from the stock exchanges showed that foreign institutional investors sold scrip worth Rs 1,380.94 crore, while the domestic institutional investors purchased stocks worth Rs 2,941.61 crore during the week.

Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors (FPIs) invested equities worth Rs 528.41 crore, or $79.66 million, in the week ended on June 29.

Sectorally, top gainers were IT, FMCG and metal indices while the the top losers were public sector banks, energy, media and realty indices, Deepak Jasani, Head of Retail Research at HDFC Securities told IANS.

The top weekly Sensex gainers were Infosys (up 4.84 per cent at Rs 1,246.45); Vedanta (up 3.11 per cent at Rs 235.75); Hindustan Unilever (up 2.13 per cent at Rs 1,641.85); Tata Consultancy Services (up 1.95 per cent at Rs 1,847.20); and Bharti AItrtel (up 1.71 per cent at Rs 381.00 per share).

The major losers were Tata Motors (down 12.61 per cent at Rs 269.30); Tata Motors (DVR) (down 12.61 per cent at Rs 158.70); ICICI Bank (down 8.43 per cent at Rs 275.50); Power Grid (down 5.66 per cent at Rs 186.65); and State Bank of India (down 5.11 per cent at Rs 259.30 per share).

(Rituraj Baruah can be contacted at rituraj.b@ians.in)

--IANS

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