The market remained under selling pressure throughout the week ended March 19 on concerns over rising inflation and bond yields. Investors were also worried about a second coronavirus wave in India, which dragged the benchmark indices below the key levels. During the week, Sensex declined 933.84 points or 1.83 percent to finish at 49,858.24 and the Nifty50 shed 286.95 points or 1.9 percent to finish at 14,744 levels. The Sensex traded in the range of 50,834.78 on the higher side and 48,586.93 on the lower side, while the Nifty50 remained in the range of 15,051.6 on the higher side and 14,350.1 on the lower side. On BSE, Larsen & Toubro, Sun Pharmaceutical Industries, Kotak Mahindra Bank, Bajaj Finserv and ICICI Bank were among major losers. Gainers included ITC, Hindustan Unilever and Power Grid Corporation of India. Vinod Nair of Geojit Financial Services says the recent rise in bond yield, inflation, second-wave risk in India and high valuation added to the volatility. Nair says a short-term correction will be good for the market. (Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.)
The BSE smallcap index fell 3.4 percent. Bliss GVS Pharma, Mahanagar Telephone Nigam, Majesco, IFCI, Future Enterprises, Reliance Capital, India Glycols, NIIT, Reliance Power, Future Consumer, Bank of Maharashtra, Jaiprakash Associates, Reliance Infrastructure, Satin Creditcare Network, Future Lifestyle Fashions and RCF fell 15-36 percent. Intellect Design Arena, Godawari Power, Indian Energy Exchange, Ashiana Housing, Sarda Energy and Minerals, Prabhat Dairy, Vishwaraj Sugar Industries and Datamatics Global Services rose 10-35 percent during the week.
The BSE midcap index fell 2.6 percent, with Future Retail, Honeywell Automation, Bank Of India, IDBI Bank and Power Finance Corporation losing more than 10 percent. Adani Power, Godrej Industries, Oberoi Realty, Cholamandalam Investment and Motilal Oswal Financial Services ended higher for the week.
The BSE largecap Index fell 2 percent. Coal India, Petronet LNG, Hero MotoCorp, ICICI Prudential, Larsen & Toubro, DLF, Punjab National Bank, Hindustan Zinc, HDFC Asset Management Company were down 6-9 percent. However, ITC, General Insurance Corporation of India, JSW Steel, Hindustan Unilever and Power Grid Corporation of India rose 4-8 percent.
On the BSE Sensex, Reliance Industries lost (Rs 36,575.93 crore) the most in terms of market value followed by HDFC Bank (Rs 30,061.52 crore), Kotak Mahindra Bank (Rs 20,787.22 crore), ICICI Bank (Rs 18,220.87 crore) and Larsen & Toubro (Rs 14,479.73crore). Hindustan Unilever (Rs 25,293.06 crore), ITC (Rs 21,969.54 crore) and Power Grid Corporation of India (Rs 5,414.7 crore) added to their market value. (Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.)
During the week, foreign institutional investors (FIIs) bought equities worth Rs 5,893.68 crore, while domestic institutional investors (DIIs) sold equities worth Rs 3,037 crore. So far in March, FIIs have purchased equities worth Rs 9,221.24 crore and DIIs have sold shares worth Rs 4,433.48 crore.
The Indian rupee rose against the US dollar during the week. It ended higher by 27 paise at 72.51 per dollar on March 19 against its March 12 closing of 72.78 to a dollar. "The forex market is still jittery about the Fed’s move and there is speculation of an early rate-hike, which are keeping the US yields higher. There is also an upside risk to the rapid spread of the coronavirus, which will keep USDINR spot afloat," said Rahul Gupta, Head Of Research-Currency, Emkay Global Financial Services. "But until the spot is trading below the 73 zone, the trend will be sideways to bearish within 72.10-72.80. The USDINR spot has to consistently trade above the resistance of 73 to breach 73.20-73.25 zone," Gupta added.
On the sectoral front, the Nifty realty index shed 5.8 percent dragged by the Brigade Enterprises, Indiabulls Real Estate and Godrej Properties. The Nifty pharma index fell 4.2 percent, pulled down by the Sun Pharmaceutical Industries, Cipla and Alkem Laboratories. The Nifty bank index declined 3.7 percent, pushed down by IDFC First Bank, Federal Bank and Punjab National Bank. On the other hand, the Nifty FMCG index rose 2.9 percent led by the ITC, Hindustan Unilever and Britannia Industries. On the BSE, the realty index shed 6 percent, capital goods fell 5.2 percent while FMCG was up nearly 3 percent.