Indian stock markets extend drop for second straight week
MUMBAI: The BSE benchmark Sensex extended its fall for second straight week by slumping 294.75 points and once again slipping below the psychological 28,000, while the broader Nifty lost 94.35 points to fall below the crucial 8,600-level.
Bears took control over bulls in a lopsided trading week following appointment of new RBI chief Urjit Patel which triggered wariness and set-in-motion the debate over the topic of domestic rate-cut and inflation.
However, sentiments were dominated by global caution on eagerly awaited US Federal Reserve Chair Janet Yellen speech at the Kansas City Fed`s annual Monetary Policy Symposium in Jackson Hole, Wyoming, which could provide hints about the timing of the next rate hike, in view of recent set of hawkish tone from senior Fed officials.
Absence of any major trigger and worries over higher US interest rates could pull-out massive money from emerging markets in the backdrop-off domestic derivative expiry for August month ruled overall weak trading sentiment for the week.
For the week, the Sensex opened flat 28,088.07 and hovered between a high of 28,154.21 and a low of 27,696.99 before ending at 27,782.25, showing a loss of 294.75 points, or 1.05 per cent. The market had lost 370.15 points during two weeks.
While, the Nifty fell by 94.35 points, or 1.09 per cent to 8,572.55 after moving between a high of 8,684.85 and a low of 8,547.55. it had declined nearly 100 points in two weeks.
Selling was witnessed in most of the sectors, led by Capital Goods, Metals, Realty, Power, PSU, IT, Banks, Teck, HealthCare, Auto followed by secondline shares of midcap companies. While, Consumer Durable, Oil&Gas, FMCG supported by broader smallcap shares saw some buying interest.
Foreign Portfolio Investors (FPIs) will be given direct access to NDS-OM to ease the process of investment in debt securities. The RBI said it has also been decided to provide FPIs facility to trade directly in corporate bonds.
Bullion
After its last week recovery, the yellow metal slide during the week at the domestic bullion market here due to slackened demand from jewellers stockists and trad- ers. Gold discounts in India hit near three-month lows this week while buying gathered steam elsewhere in Asia as lower prices and festive buying lifted demand for the metal.
Despite ongoing festive season, precious metal witnessed a relatively lower momentum throughout the week as buyers preferred to remain on the sidelines.
Elsewhere, silver also witnessed a third week fall, on sustained selling by stockists and investors coupled with lack of demand from industrial users.
The white-metal cracked below the Rs44,000-mark owing to lack of industrial buying support.
The dollar held steady against the euro on Friday, leaving it little changed on the week, as investors focused on Yellen’s speech.