D-Street ends wild week with sharp losses

Thank God, it’s Friday! That’s what most market enthusiasts must be saying after this exasperating week. Stocks lost ground in choppy trading on Friday as traders struggled to find a method to the madness on D-Street.

Both Sensex and Nifty recovered from the day’s low but failed to settle above the flatline.

The 30-share pack lost 135.37 to close at 51,360.42. Its broader peer Nifty50 fell below the 15,300 mark. For the week, the Sensex fell around 5.19 per cent, whereas Nifty50 dropped 5.36 per cent, logging their worst week in nearly 2 years.

Domestic stocks eroded over Rs 14 lakh crore from investors’ kitty in six days of the market meltdown. The benchmark indices failed to settle in the green throughout the week as investors are worried about a potential economic slowdown and are avoiding major bets.

Going ahead, the US Fed chairman’s speech and China’s interest rate decision would be important triggers for the markets. On the domestic front, the Covid trend and the progress of the monsoon will also be in focus, said Ajit Mishra, VP – Research, Religare Broking.

“We reiterate our negative view on markets and suggest continuing with the “sell on rise” approach,” he added.

Market breadth favours declines as 1,076 stocks advanced, 2,252 stocks declined, and 93 remained unchanged. Advance-decline ratio was at 2:5.

Markets this Week

Rising inflation and policy tightening by global central banks are forcing the market to discount the possibilities of recession, said Vinod Nair, Head of Research at Geojit Financial Services.

All sectoral indices logged losses for the week, with metal, PSU and IT stocks declining the most. All stocks from the Nifty pack post losses, with ONGC, Hindalco, Tech Mahindra, Wipro, IndusInd Bank and Tata Steel falling over 11 per cent for the week. Nifty Bank dropped 5 per cent this week, whereas Nifty Metal fell nearly 9.5 per cent to become the worst-performing sector. Nifty Midcap cracked 6 per cent this week.

Gainers & Losers

Delta Corp jumped 13 per cent after its arm filed for IPO. Titan was the top loser from the Nifty pack, falling over 6 per cent. Wipro, Shree Cement, HDFC Life, and BPCL, also declined by over 3 per cent each. On the other hand, the Bajaj twins advanced around 2.5 per cent, while Coal India, JSW Steel, Reliance, and ITC ended the session with gains.

According to Nair, the domestic market will continue to trade with high volatility in the near term, however, the ongoing corrections are opportunities in disguise for medium to long-term investments.

Sectoral Matrix

Mostly sectoral indices traded with a negative bias, and the broader indices too lost nearly a per cent each. Pharma, oil and gas, realty and consumer durables lost over 2 per cent each. Auto and IT too shed over 1 per cent.

RBL Bank, Nalco, Gujarat Gas, Laurus, Indiabulls Housing, Canara Bank were among the top midcap losers in today’s trade. Markets are largely taking cues from the global markets, in absence of any major domestic event.

Global Markets

Markets in Tokyo and Seoul ended lower, while Hong Kong and Shanghai posted gains. European markets were trading in the green in mid-session deals. US stock futures rose on Friday as Wall Street attempted to find its footing after a brutal sell-off.

Meanwhile, international oil benchmark Brent crude jumped 0.96 per cent to $120.96 per barrel. The rupee pared initial gains to settle just 1 paisa higher at 78.09 (provisional) against the US dollar on Friday amid a muted trend in domestic equities and unabated foreign capital outflows.

(What’s moving Sensex and Nifty Track latest market news, stock tips and expert advice on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.)

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Roy Walsh

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