Equities slip on weak global cues, DIIs outflows (Market Review)

Equities slip on weak global cues, DIIs outflows (Market Review)

Weak global cues on the back of geopolitical concerns, coupled with sustained outflow of foreign funds, led Indian equity indices — the BSE Sensex and the NSE Nifty — to close the week’s trade in the negative zone after three consecutive weeks of gains.

On a weekly basis, the 30-scrip Sensitive Index (Sensex) of the BSE lost 204.71 points or 0.64 per cent to close at 31,687.52 points.

Meanwhile, the Nifty50 of the National Stock Exchange (NSE) closed at 9,934.80 points, down 39.6 points or 0.4 per cent.

“Markets traded in a range for a major part of the week after correcting in the initial half of the week. Metals, capital goods and consumer durables indices gained, while PSU (state-run banks), power, FMCG, healthcare and IT indices fell over the week,” Deepak Jasani, Head – Retail Research, HDFC Securities, told IANS.

Anita Gandhi, Whole Time Director, Arihant Capital Markets, said: “Markets ended the week on a flat note amid volatility and weak global cues, as investors remained cautious due to geopolitical concerns, premium valuation, lackluster earnings season and geopolitical headwinds.”

“However, sustained capital infused by domestic institutional investors (DIIs) supported the bulls to some extent,” Gandhi told IANS.

Provisional figures from the stock exchanges showed that DIIs bought scrips worth Rs 1,210.12 crore during the week. However, foreign institutional investors (FIIs) continued with their selling spree and off-loaded stocks worth Rs 3,426.51 crore.

Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors (FPIs) divested equities worth Rs 3,409.13 crore, or $531 million, during September 4-8.

Vinod Nair, Head of Research, Geojit Financial Services, said: “For the last one month, the Indian market declined by about 2 per cent, which is in line with the developed economies, but was underperforming other emerging markets largely due to divergence in earnings and valuation.”

“Further, lack of clarity on the impact of GST in the medium term corporate earnings is adding to cautiousness,” added Nair.

On the global front, sentiments of market participants got dampened by reports that the number of Americans filing for unemployment benefits jumped to its highest in more than two years last week amid a surge in applications in hurricane-ravaged Texas, said D.K. Aggarwal, Chairman and Managing Director, SMC Investments and Advisors.

“Also, the European Central Bank’s (ECB) indication that it may begin tapering its massive stimulus programme this autumn spooked the confidence of the market participants,” Aggrawal told IANS.

“Back at home, stock-specific movement was seen in the market. Some positive global cues after President Donald Trump’s support to a package that included a short-term debt ceiling extension gave strength to the domestic market to some extent… Now market participants are looking for fresh triggers,” he added.

During the week, the Indian rupee strengthened by 23 paise to close the week at 63.79 to a US dollar from its previous week’s close at 64.02-03.

The top weekly Sensex gainers were: Coal India (up 6.75 per cent at Rs 254.45); Larsen and Toubro (up 2.86 per cent at Rs 1,172.30); Maruti Suzuki (up 2.05 per cent at Rs 7,972.80); Reliance Industries (up 1.55 per cent at Rs 817.15); and Kotak Bank (up 1.40 per cent at Rs 1,007.50).

The losers were: Tata Motors (DVR) (down 6.29 per cent at Rs 210.65); Bharti Airtel (down 4.37 per cent at Rs 404); Tata Motors (down 4.01 per cent at Rs 375.05); Mahindra and Mahindra (down 4.01 per cent at Rs 1,294.70); and ITC (down 3.93 per cent at Rs 272.45).

(Porisma P. Gogoi can be contacted at [email protected])

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