Sensex descend for 2nd week, slide 449 pts

Mumbai
24 Dec 2016

The BSE benchmark Sensex marked biggest loss not seen since five weeks, dropping 448.86 points to finish at 26,040.70, while the broader Nifty dipped below the psychological 8,000-level.

Bearishness tagged the trading momentum from day-one of the week, borne by cascading effect of demonitization, it was further restricted by mute sentiment across the globe due to long Christmas and New Year holidays.

While, foreign institutional investors (FIIs) pursued selling of Indian equities amid US outlook over rate-hike next year, while local delay over GST implementation led investors fret.

Investor sentiment, void of any triggers opted mostly to stay sidelines or cashed in profits on opportunity during the week, while it led the key indices to mark one-month lows and revist 25K-level.

However, the market did overcome string of losses to witness mild recovery and reclaim the key 26K-level during the weekend trade on bouts of shortcovering after signs of progress in two-day GST-council meet and optimism about its implementation.

During the week, the Sensex dropped 448.86 points, or 1.69 per cent, to finish at 26,040.70. It hovered in the range of 26,505.66 and 25,872.38.

The Nifty 50 index during the week slumped 153.70 points, or 1.89 per cent, to conclude below the key 8K-level at 7,985.75 after shuttling between 8,132.50 and 7,942.05.

Across the spectrum selling pressure was witnessed led by Health Care, Metal, IPOs, FMCG, Capital Goods, PSUs, Power, Auto, Teck, Consumer Durables, IT, Realty and Oil&Gas sectors. The broader midcap and smallcap shares also saw heavy selling.

Meanwhile, foreign portfolio investors (FPIs) and foreign institutional investors (FIIs) sold shares worth whopping Rs 4,319.76 crore during the week, as per Sebi's record including the provisional figure of December 23.

In the broader market, the BSE Mid-Cap index dropped by 475.79 points or 3.89 per cent, to settle at 11,760.78 and the BSE Small-Cap index fell by 316.58 points or 2.61 per cent, to settle at 11,796.94.

Among sectoral and industry indices, Healthcare dipped 4.25 per cent followed by Metal 4.22 per cent, IPO 3.35 per cent, Banking 2.65 per cent, FMCG 2.11 per cent, Consumer goods 2.05 per cent, PSU 2.01 per cent, Power 1.79 per cent, Auto 1.73 per cent, Teck 1.66 per cent, Consumer Durables 1.40 per cent, IT 1.32 per cent and Realty 1.08 per cent.

Among the 30-share Sensex pack, 23 stocks fell, seven stocks rose.

Major lossers from the Sensex pack were, Axis Bank 7.26 per cent, Adaniports 6.12 per cent, SBIN 5.85 per cent, Tata Steel 5.64 per cent, BhartiAirtel 4.66 per cent, ONGC 4.31 per cent, Sun Pharma 3.60 per cent, HDFC 3.30 per cent, Hindunilever 3.22 per cent, Dr Reddy 3.15 percent, Asianpaint 3.01 per cent, HeroMotoco 2.91 per cent, Larsen 1.62 per cent, Lupin 1.58 per cent, Infosys 1.48 per cent, ICICI Bank 1.43 per cent, Tata Motors 1.34 per cent, Bajaj Auto 1.25 per cent and PowerGrid 1.17 per cent.

While, GAIL rose by 4.00 per cent and Cipla by 2.42 per cent.

The total turnover during the week on BSE rose to Rs 12,523.76 crore from last weekend's level of Rs 12,267.93 crs while NSE fell to Rs 71,531.91 crs from Rs 82,768.15 crores.

Gold continued its downtrend for the seventh week in a row at the domestic bullion market here today owing to persistent stockists and investors selling on the back of bearish global cues.

Gold demand in India remained subdued this week despite a sharp fall in prices to over 10-1/2 month lows as a severe cash crunch and holidays kept buyers away from the market.

Standard gold shed a whopping Rs 3,380 per 10 grams for the seventh week in a row.

Silver declined further this week and remained below the Rs 40,000-mark to close yesterday at Rs 39,215 per kg (The level that has not been seen since June 07, 2016) following hectic selling pressure from speculators and stockists coupled with reduced industrial offtake.

In worldwide trade, gold edged higher yesterday as the dollar retreated from this week's 14-year high and some buyers were tempted to take advantage of prices near a 10-month low after six weeks of decline. Volumes were thin as traders prepared for a long weekend. Markets will be shut on Monday for the "Christmas" holiday.

Bullion has fallen more than USD 200 an ounce from the peak it hit after Donald Trump's US presidential election victory on Nov. 8, reaching a low last week of USD 1,122.35, as his win sparked a dollar rally and drove US Treasury yields higher.