We had mentioned in last week’s closing report that Nifty, Sensex were trendless. The major indices of the Indian stock markets suffered a sharp correction during the week due to deterioration in Indo-Pak relations. The trends of the major indices in the course of the week’s trading are given in the table below:
Indian equity markets plunged on the back of negative global cues and caution ahead of F&O (futures and options) expiry during the mid-afternoon trade session on Monday. The key indices traded in the red with losses of more than 1% each, as selling pressure was witnessed in stocks of banking, automobile and capital goods. The BSE market breadth was tilted in favour of the bears -- with 1,644 declines and 1,052 advances. On the NSE, there were 542 advances, 1,070 declines and 259 unchanged. Volatility in global crude oil prices and negative Asian markets dragged the Indian equity markets lower at the start of the day's trade, pointed out market analysts. Lower European market accelerated the falls in the key domestic indices. Unwinding of positions ahead of F&O expiry also depressed the equity markets. The CNX Nifty traded lower tracking negative global cues. IT and banking stocks traded down on profit-booking. Auto and oil-gas stocks traded with sideways sentiments.
India's foreign exchange reserves went down $369.60 billion as on September 16, the Reserve Bank of India (RBI) announced on Monday. According to data released by the RBI, the reserves stood at $369.60 billion as on September 16, as against $371.27 billion as on September 9. On September 16, the foreign currency assets stood at $344.07 billion, gold at $21.64 billion, special drawing rights at $1.49 billion and the reserve position in the International Monetary Fund (IMF) at $2.39 billion. The Indian stock markets did well in attracting investments from foreign institutional investors, when the foreign exchange reserves moved down.
On Tuesday, the key indices closed in the red as selling pressure was witnessed in capital goods, banking and automobile stocks. The BSE market breadth was tilted in favour of the bears -- with 1,430 declines and 1,254 advances. On the NSE there were 614 advances, 828 declines and 61 unchanged. IT (information technology) stocks traded with mixed sentiments, while banking stocks traded down due to profit booking. Textile and FMCG stocks traded with mixed sentiments on profit booking, according to market analysts.
State-run Coal India Ltd's share buy-back offer will open from October 3 to October 18, a regulatory filing said on Tuesday. Coal India board had approved the buy-back of over 10.89 crore shares at a price of Rs335 per share for an aggregate consideration not exceeding Rs3,650 crore. SBI Capital Markets Ltd on Tuesday informed about the letter of offer regarding buy-back offer to the equity shareholders of coal miner. "The buy-back offer size represents approximately 24.95 per cent of the aggregate of the fully paid-up share capital and free reserves, as per the audited accounts of the Company for the financial year ended 31 March 2016 and is within the statutory limits of 25% of the aggregate of the fully paid up share capital and free reserves as per the audited accounts of the Company for the financial year ended 31 March 2016," the filing said. Coal India shares closed at Rs332.00, down 0.20% on the BSE.
Value buying, along with short covering and a firm rupee, lifted the Indian equity markets during the mid-afternoon trade session on Wednesday. Buying was witnessed in automobile, banking and capital goods stocks. The BSE market breadth was tilted in favour of the bulls -- with 1,644 advances and 1,003 declines. On the NSE, there were 932 advances, 482 declines and 70 unchanged.
The banking sector, especially the public sector banks, led the recovery. Positive European markets and a firm rupee have also supported the upward movement. The CNX Nifty traded with firm sentiments due to short covering. IT (information technology) stocks faced profit booking at higher levels. Auto, oil-gas and textile stocks also traded firm. Aviation and FMCG stocks traded with mixed sentiments due to profit booking. Power and cement stocks also traded firm on buying support.
Indian equities tumbled sharply on Thursday after the army said it conducted surgical strikes on terror camps along the Line of Control (LoC) in Jammu and Kashmir, inflicting "significant casualties". The barometer 30-scrip sensitive index (Sensex) of the BSE, which was ruling strong in the morning after the unexpected production cuts agreed to by oil producing countries, took a fall of more than 500 points after the relevant briefing by the Indian Army. However, value buying arrested the steep falls and led to a bounce back. Nonetheless, speculative selling, profit booking and derivatives expiry dynamics again dragged the key indices lower during the late-afternoon trade session. The BSE market breadth fell prey to the bears -- with 2,297 declines and 442 advances. On the NSE, there were 77 advances, 1,415 declines and 31 unchanged.
The CNX Nifty and Bank Nifty traded down on selling pressure. IT (information technology) stocks witnessed some recovery at lower levels tracking firm USD/INR futures prices. Banking, pharma and auto stocks traded down on selling pressure. Aviation stocks traded down tracking higher crude oil prices. Oil-gas, textile and FMCG stocks also traded down on over all selling pressure in the market.
The Indian currency, which opened at 66.44 to a US dollar, had already depreciated in the initial hours of the day's trade in line with the weakness in Asian currencies. The sharp fall occurred around 1.00 p.m. when the rupee depreciated to 66.95 to a US dollar. This level was last seen on September 22. However, the Indian currency bounced back marginally to 66.85 to a greenback before speculative selling dragged it lower to 66.90 at 4.10 p.m. on Thursday.
Value buying and short covering, along with a recovering rupee, buoyed the Indian equity markets on Friday. The key indices traded in the green during the late-afternoon session, as buying was witnessed in automobile, oil and gas, and banking stocks. On Friday, the major indices closed with small gains over Thursday’s close.