India VIX rose 16% last week, while largecaps index fell 5.3%, midcaps and smallcaps fell 5.1% and 4.9%, respectively
Indian stock market witnessed free fall in the last week with Sensex closing below 35,000 mark and Nifty 600 points lower owing to the falling rupee, sustained foreign capital outflows and concerns over widening current account deficit.
The market started the week on positive note but failed to keep the upward momentum amid soaring crude oil prices which pressured rupee and a surprise RBI move to hold rates dragged the indices to the week's lowest level.
The central bank on October 5 surprised markets by pausing key rates against market expectations of a 25 bps hike, while changed its the stance from neutral to Calibrated Tightening.
"On weekly charts it's a fifth consecutive Bear candle in a row suggesting market may be stretching more on the downside and hence can attract some relief rally going forward," Mazhar Mohammad, Chief Strategist-Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
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(16.93 percent) and Bajaj Finance (16.78 percent).
Rupee has depreciated nearly 7 percent and crude prices have soared over 17 percent from the last MPC meet.
In order to ease the inflation, the government has cut excise duty on petrol and diesel by Rs 1.50 per litre and asked state-run oil marketing companies to absorb a cut of Rs 1 per litre.
On Friday, rupee closed at 73.77 per dollar against Thursday's close of 73.58 per dollar. It fell 1.8 percent this week, registering sixth consecutive weekly fall against dollar. This is a biggest weekly fall against dollar since week ended August 17.
In the last week the Sensex lost 1850.15 points to close at 34,376.99 (down 5.1 percent), while Nifty shed 614 points to close at 10,316.45 (down 5.6 percent).
Foreign investors were net sellers this week, while domestic institutions remained buyers.
India's volatility index (India VIX) rose 16 percent last week, while largecaps index fell 5.3 percent, midcaps was down 5.1 percent and smallcaps shed 4.9 percent.
Nifty Energy index has underperformed other sectorial indices with a fall of 15.4 percent during the week.
Reliance Industries lost most to its market value on the BSE, followed by ONGC, TCS and ITC.
Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.
