During the week, rupee slid 0.87 per cent to 65.791 on November 6. The currency was at 65.223 levels on October 30. (Photo: PTI)
The BSE Sensex and NSE Nifty slid for the second consecutive week on account of some selling pressure by foreign institutional investors amid uncertainty on the political front, weak rupee and mixed quarterly results. Benchmark indices plunged around 1.5 per cent for the week ended November 6, 2015.
During the week, Sensex and Nifty lost 391 points and 111.50 points to close at 26,265.24 and 7954.30, respectively, on November 6. Brokers said market sentiments were influenced by the exit polls at the end of five-phased polling in Bihar that predicted a close fight and gave an edge to the grand alliance of JDU-RJD-Congress over the BJP-led NDA grouping. Official results of Bihar polls will be announced on Sunday(Nov 8).
In the 30-share index, share price of Dr Reddy’s Laboratories slid the most — 14.99 per cent at Rs 3,629.55, followed by Tata Steel (down 10.80 per cent), Sun Pharmaceutical Industries (down 9.60 per cent), Vedanta (down 7.75 per cent) and GAIL (down 6.49 per cent). On the other hand, share price of Coal India, Mahindra & Mahindra and Tata Motors jumped 6.80 per cent, 6.38 per cent and 3.07 per cent, respectively during the week.
Jimeet Modi, chief executive officer, SAMCO Securities, said, “Uncertainty on political front and quarterly results which just met market expectations affected sentiments during the week. Some sectors in the economy are doing extremely well, the automobiles are scorching ahead with 30 per cent to 50 per cent volume growth followed by auto ancillaries. The effect of low crude oil and raw material prices on the profitability was visible across the sectors.”
Sectorwise, the BSE Healthcare index, BSE Capital Goods and BSE Metal index fell 6.07 per cent, 2.74 per cent and 2.11 per cent, respectively, during the week under review. The BSE Auto and BSE Oil & Gas index gained 0.54 per cent and 0.47 per cent during the same period.
Foreign Portfolio Investors remained net sellers in the equity market as they sold shares worth Rs 2,667.18 crore in the past five trading session, according to NSDL data.
During the week, rupee slid 0.87 per cent to 65.791 on November 6. The currency was at 65.223 levels on October 30.
The listing of the Coffee Day Enterprises in the week was the biggest disappointment of the week. It crashed 18 per cent on the day of listing highlighting the somber mood of the markets. “The message that market has given is loud and clear, that if the shares are overpriced they will be punished,” said Modi.
IDFC Bank, the demerged banking entity of infrastructure finance company IDFC, also made its debut on the bourses this week. The stock was listed at Rs 70.50 on BSE and finally ended at Rs 70.70, up 0.28 per cent from the opening price. During the day, it touched a high of Rs 73.45 and a low of Rs 67.
Market experts believe D-Street is currently looking forward to the final result of Bihar election on November 8. Jayant Manglik, president, retail distribution, Religare Securities, said, “Now, we’ll be seeing market reaction on the Bihar election result in early trade on Monday and that would set the tone for rest of the session. Traders are advised to wait for market to stabilise before taking any fresh bets.”
In overseas stock markets, all global markets edged lower ahead of US employment data for October 2015 that is expected to bolster the case for a Federal Reserve interest rate hike as early as next month and also awaited monthly non-farm payrolls report today in evening.
Vivek Gupta, CMT, director research, CapitalVia Global Research, said, “Outcome of Bihar elections, macroeconomic data, trend in global markets, investment by foreign institutional investors, the movement of rupee against the dollar, CPI, IIP data to be announced on 12 Nov 2015 and WPI data to be announced on 16 Nov 2015 and upcoming quarterly results of companies like Tata Power, REC LTD, Havells, HPCL, Aditya Birla Nuvo, Bank of India, Coal India, Hindalco, CESC, etc. will dictate trend of the market in near term.”
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