We had mentioned in last week’s closing report that Nifty, Sensex continue to lose momentum. The major indices of the Indian stock markets suffered a correction on Wednesday, Thursday and Friday. Monday and Tuesday were market holidays. The trends of the major indices in the course of the week’s trading are given in the table below:
Weak global cues dragged the Indian equity markets on Wednesday. The key indices closed the day's trade with losses of more than 1% each, as selling pressure was witnessed in healthcare, oil and gas, and automobile stocks. The market was spooked with the possibility of Donald Trump winning the US presidential elections and the possibility of a rate hike in the US soon.
Car-maker Ford India Pvt Ltd on Wednesday said it closed last month selling a total of 22,043 vehicles, more than it sold in October 2015. In a statement issued, the company said its combined domestic wholesales and exports grew to 22,043 vehicles in October, in comparison to 20,420 vehicles in October 2015. October domestic wholesales stood at 7,508 vehicles against 10,008 vehicles in the same month last year, while exports grew to 14,535 vehicles compared to 10,412 units in October 2015, Ford India said.
Prime Minister Narendra Modi on Wednesday chaired a meeting to discuss a roadmap to reduce the country's dependency on import of oil and gas, sources said. They said the Petroleum Ministry presented strategies at the meeting to achieve the objective of reducing oil and gas imports. The strategies included increasing production of crude oil and gas, promoting bio-fuels and renewables, energy efficiency and promoting conservation. Home Minister Rajnath Singh, Petroleum Minister Dharmendra Pradhan and Environment Minister Anil Madhav Dave attended the meeting. Others present included NITI Aayog Vice Chairman Arvind Panagariya, NITI Aayog CEO Amitabh Kant, Cabinet Secretary Pradeep Kumar Sinha and senior officials from PMO, Petroleum Ministry, External Affairs Ministry, Home Ministry, Finance Ministry and Defence Ministry. Indian Oil Corporation shares closed at Rs315.60, down 2.91%.
Indian equity markets on Thursday were pulled lower on the back of global cues, such as the US Fed's interest rate decision and uncertainty over the upcoming US presidential election. The barometer 30-scrip sensitive index (Sensex) of the BSE hit its lowest level in over 16 weeks. The BSE market breadth was skewed in favour of the bears -- with 1,775 declines and 1,174 advances. On Wednesday, the benchmark indices had closed on a lower note, depressed by weak global cues. Initially on Thursday, the key equity indices opened on a flat note in sync with their Asian peers. The global markets remained cautious over the US Fed's Federal Open Market Committee (FOMC) meet decision on Wednesday, which indicated a possible rate-hike in December on the back of economic recovery, while keeping its short-term interest rate intact for the current month. A hike in the US interest rates can potentially lead foreign portfolio investors (FPI) and funds away from emerging markets such as India. It is also expected to dent the business margins of corporates as access to capital from the US will become expensive. Besides, positive domestic macro-economic data -- the Nikkei India Services PMI (Purchasing Manager's Index) -- released earlier during the day, could not cheer the equity markets. The data showed a rise of the index to 54.5 in October from 52 in September, indicating a healthy growth in the services sector.
Indian equity markets on Friday traded in the negative territory as there was global uncertainty over the result of the forthcoming US presidential election. Selling pressure was witnessed in healthcare, metal and capital goods stocks. The US non-farm payrolls data is expected later in the evening, which will also signal if there will be a rate-hike in the mid-December, pointed out market analysts. Friday’s trading ended with moderate losses of around 0.50% in the major indices over Thursday’s close.