Mkts tumble 687 pts for the week, Nifty below 10,600

Mumbai
19 May 2018

Both the benchmark Sensex and Nifty faltered during the week trade, lossing 687.49 points and 210.10 points each to breach the important support level of 35,000 and 10,600-level and concluded at 34,848.30 and 10,596.40 respectively.
The market languished under selling pressure entrapped by political uncertainty of Karnataka Assembly election result during the week trade.
Disturbing macro-datas of falling Industrial output- growth which fell to five month lows, acceleration in both retail (CPI) and Wholesale (WPI) inflation, volatile rupee and bond yields and above all hardening global crudeoil prices which peak USD 80 per barrel, led key indices caught under the bear-grip.
The market ambience shaken, surrendering all the positivity gains after BJP fell short of clear majority in Karnataka election, and again, as the week days encountered state political wranglings for power led the investor sentiment wary.
Global cues are also not supportive as lack of progress in US-China trade tariff issue, fueling tension in Korean peninsula, higher yield on the 10-year US Treasury note which went up to highest 3.09 per cent in seven years also pressured the investors sentiment.
The BSE Sensex started the week higher at 35,555.83 and hovered between high of 35,993.53 and low of 34,821.62 before closing the week at 34,848.30, showing a loss of 687.49 or 1.93 per cent.
(The Sensex gained 620.41 points during the previous week session)
The Nifty also resumed the week higher at 10,815.15 and traded between 10,929.20 and 10,589.10, the index finally closed at 10,596.40, falling 210.10 points, or 1.94 per cent.
Broader indices continued its sell-off for the third consecutive week as both Midcap and Smallcap shares tumbled.
Barring FMCG and IT which managed to pull-off the week with gains, the selling were led by Capital Goods, Auto, PSUs, Metal, Oil&Gas, HealthCare, Bankex, IPOs, Power, Consumer Durables, Realty and Teck sectors.