Indian market which remained in bear grip throughout the week saw some hefty selling on Friday after housing finance companies came under heavy sell-off which dampened the overall sentiments. The market on Monday opened on weak note with Nifty and Sensex broke their crucial levels 11,500 and 38,000 respectively remained under pressure during the week. Both the major indices shed more than 3 percent amid rising trade war concern, depreciating rupee, rising crude oil prices, merger of 3 PSU banks and heavy selling in housing finance companies.
“Overall sentiments in the market have turned cautious and we feel that with rising bond yields interest rate sensitive stocks may come under pressure as their margins erode and cost of borrowing rises,” Hemang Jani, Head – Advisory, Sharekhan by BNP Paribas told Money control. On Friday, Sensex saw an intraday swing of around 1500 points after housing finance company DHFL plunged as much as 60 percent during the day may be after selling of commercial papers worth about Rs 200-300 crore by DSP Mutual Fund recently.
The rupee fell 0.5 percent against US dollar ended at 71.85 for the week ended September 21. This is a fourth consecutive weekly fall in rupee against the US dollar. Yes Bank (down 46.45) was a major contributor to Nifty slide followed by Bajaj Finance (down 15.07 percent), Infosys (down 11.64 percent), Kotak Mahindra Bank (down 9.66 percent) and Indiabulls Housing (down 8.99 percent). The Nifty 50 index ended down 372.1 points at 11,143.1 (3.23 percent), while Sensex shed 1,249.04 points closed at 36,841.6 points (3.27 percent)
In the last week, FIIs sold equities worth Rs 2,674.12 crore, while domestic institutions bought equities worth of Rs 1,782.63 crore. India’s volatility index (India VIX) was up 12.28 percent last week. The smallcap index was down 5.54 percent, largecap index ended 3.34 percent lower, while midcap index shed 4.61 percent.