Published On: Fri, Oct 6th, 2017

Market suffers second straight weekly loss, plunge 638 points

A man looks at a screen across a road displaying the Sensex on the facade of the Bombay Stock Exchange (BSE) building in Mumbai.

The benchmark Sensex witnessed sharp losses for the second consecutive week, falling 638.72 points to end at 31,283.72, while the broader Nifty slid below the key 9,800-level at 9,788.60 on heavy FPI sell-off along with volatile rupee.

The market felt the global uncertainities with FPI offloading indian stocks considerably during the week, while rupee falling to over six and half month lows pressured the stocks, the key F&O expiry week and government stimulus plan affecting fiscal deficit concerns added to stock turmoil.

The FII diluted whopping 8,427.99 crore as per provisional data during the week trade appropriating global unpredictability due to North Korean jitters. Also the key EU powerhouse Germany’s Angela Merkel worst election result won with uneasy coalition of far-right, anti-immigration Alternative for German (AfD) party fluctuated the market.

The volatile rupee dropped to six and half month lows on surging US dollar reacting to President Trumps new Tax Plan overhaul and strong data, it was clogged by soaring crudeoil to 7-month highs also attributed to the stock slide.

However, stocks did pullback on recovering rupee and massive inflows from domestic funds, while receding fiscal deficit worries on government’s unchanged stance on budgeted borrowing plan along with hectic shortcovering owing to September derivative expiry supported the key indices.

After opening at 31,986.40, the Sensex traded in a range of 32,016.52 and 31,081.83 before closing the week at 31,081.83, showing a fall of 638.72, or 2.00 per cent.

The Sensex lost 350.17 pts or 1.09 pct during previous week.

The Nifty started the week at 9,960.10 and hovered between 9,960.50 and 9,687.55. The index ended the week at 9,788.60, lossing 175.80 points or 1.76 per cent.

Barring Metal sector which gained, Selling was led by Capital Goods, HealthCare, FMCG, Power, Banks, IPO, IT, Teck, PSUs, Auto, Oil&Gas and Realty counters.

The second line shares of midcap and smallcap companies also witnessed substantial selling.

 

 

[“source=hindustantimes”]