MUMBAI: Benchmark indices put on a sluggish performance in this truncated week. After posting solid gains in the last week, benchmark indices ended the week in red owing to Friday’s steep fall.
Domestic and global economic developments kept investors on the watch, throughout the week. Mounting issues over NPAs in the banking segment came under the government’s scanner as it issued an ordinance to amend the Banking Regulation Act that will empower the RBI to go after defaulters.
In another move by the government, Indian steel makers took a breath of relief after the Cabinet approved National Steel Policy, under which priority will be given to Indian steelmakers in government tenders for infrastructure projects.
News from other end of the globe, the U.S. Federal Reserve kept the key interest rates unchanged. Further, it viewed the slowdown in economy as transitionary and remained optimistic about the future, hinting at at least a couple more interest rate hikes in this year.
After opening the week at 30,021.49 points, the Sensex posted a loss of 0.20 per cent. It traded in the range of 29,804.12 and 30,176.55 to finally close at 29,858.80.
The Nifty started the week over 9300 mark at 9,339.85 and lost 0.20 per cent by the end of the week. It traded in the range of 9,269.90 and 9,377.10 and closed at 9,285.30.
Anupam Singhi, COO of William O’Neil India said,” Talking about the broader indices the Nifty Midcap snapped from its seven week winning streak to post a loss of 0.21 per cent in this week.
Talking of the trading action in this week, benchmark indices traded sluggishly in the first two trading sessions.
Volatility prevailed on Tuesday and Wednesday as key composites were range bound and closed flat with no major move. Investors awaited U.S. Federal Reserve’s verdict on key interest rate.
However, benchmark indices staged a strong rebound in Thursday’s session to end the day with significant gains. Government’s amendments to the Banking Regulation Act and approval of National Steel Policy fostered market growth. The Nifty clocked an all-time high on closing basis in the session.
The cheers were however short lived as bears rampaged markets on Fiday’s session giving away all the week’s gains. Key indices witnessed sharp correction amid weak metal prices and profit booking.
Meanwhile, foreign portfolio investors (FPIs) and foreign institutional investors (FIIs) sold shares net Rs 930.85 crores during the week.
The total turnover during the week on BSE and NSE fell to Rs Rs 17,292.52 crores and Rs 1,07,803.40 crores respectively from Rs 21,404.14 crore and Rs 1,42,309.69 crs last week.