During the week under review, rupee plunged 0.53 per cent to 65.22 levels on October 30. The currency was at 64.88 levels on October 23.(Express Photo)
Bears dominated bulls in the equity markets this week as the benchmark indices plunged nearly 3 per cent for the week ended October 30. According to market experts, sentiment was affected due to caution about earnings and the US Federal Reserve’s statement putting into play a rate hike this year.
During October 23 and October 30, the BSE Sensex and NSE Nifty declined 814 points and 230 points to 26,656.83 and 8,065.80, respectively. Sensex and Nifty were at 27,470.81 and 8,295.45 on October 23.
Among the sectoral indces on the Bombay Stock Exchange (BSE), the BSE Capital Goods index plunged the most — 4.40 per cent throughout the week, it was followed by BSE Realty index (down 3.68 per cent), BSE Bankex (down 3.44 per cent) and BSE FMCG index (down 3.31 per cent). The BSE Consumer Durables index remained the only gainer and jumped 0.12 per cent.
Vineeta Mahnot, equity research analyst, Hem Securities, said, “Tough after a firm opening of the week led by firm global cues on account of China’s rate cut; Indices could not sustain gains mainly due to subdued quarterly earnings of India Inc. US Federal Reserve leaving the door open to an interest-rate hike later this calendar year as signaled in its meet, unwinding positions of October derivative series, breakdown of commodity prices across the world and weak global cues spoiled the sentiment of the street.”
Dipen Shah, head of private client group research, Kotak Securities, said, “Markets were disappointed by the results of a few banks, capital goods and other companies which failed to meet expectations.”
In the BSE 500 index, share price of RISA International, Sunrise Asian, DCB Bank, Opto Circuits, The Jammu & Kashmir Bank, Corporation Bank, The Federal Bank, Oil India and Mahindra & Mahindra Financial Services touched their new 52-week low during the week.
During the week under review, rupee plunged 0.53 per cent to 65.22 levels on October 30. The currency was at 64.88 levels on October 23.
For next important triggers for the markets, Shah said, “The focal points for the markets will be the remaining quarterly results and the outcome of Bihar elections. A win for the NDA in Bihar elections will be a positive for the markets. Post that, markets will focus on the Parliament proceedings, wherein, important legislations like the GST Bill are expected to be taken up.”
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