Benchmark equity indices posted second consecutive weekly fall as foreign institutional investors (FIIs) turned net sellers on a weekly basis for the first time since August. Data showed that FIIs sold $61-million worth of Indian shares in the cash segment ? first such weekly sale since August 30, 2013.
Domestic institutional investors (DIIs) also remained net seller, selling R88-crore worth of Indian shares this week. Last week DIIs had sold Indian shares worth R1,178 crore, while FII weekly buying had declined to its lowest in four months at $181.5 million.
Sensex declined 0.5% and the Nifty lost about 0.65% this week as the street was jittery ahead of India Inc?s Q3 results. Moreover, unfavourable economic data and speculation over further a cut in quantitative easing by the US Federal Reserve in its meeting next month kept market sentiment in check.
On Friday, however, Sensex posted biggest single-day gain in nearly two weeks as Q3 results season began on a positive note with two major companies ? Infosys and IndusInd Bank ? reporting revenue growth that met market expectations. The 30-share gauge advanced 45.12 points or 0.22%. The Nifty ended flat-to-positive. The 50-share index ended at 6,171.45, up 3.10 points or 0.05% from the previous close.
Markets witnessed broader selling pressure on the second consecutive day on mild profit booking. The BSE mid-cap and small-cap indices lost 1% and 0.6% respectively, after having gained more than 15% in the previous three months, data show. Banks and shares of rate sensitive sectors such as real estate, mining and metals, power, capital goods ended in red for the second week in succession. BSE Realty index declined 6.5% in the week, followed by BSE Capital Goods (-4%), Bank Nifty (-3.4%), BSE Power (-3%) and BSE Consumer Durables (-2.1%). CNX IT, BSE Healthcare, BSE Oil and BSE FMCG indices ended positive.
The mood in global markets was mixed, with major European and US equities trading positive. However, Asian markets ended weak, with major indices such as Nikkei 225 and Shanghai Composite ending down 3-4% each this week.
Back home, market was weak. Of 30 Sensex companies, about 18 scrips ended in the red this week. Axis Bank lost 7.62% ? the biggest loser this week. Hindalco (-6.9%), Tata Steel (-6.8%), SBI (-6.25%) and Larsen & Toubro (-5.5%) completed the list of top five losers. Prominent gainers this week include Sun Phrama (5%), Dr Reddy?s Laboratories (5%), Coal India (3.9%), ONGC (2.9%), and TCS (2.7%).
