Markets end in red for second consecutive week
Stocks: Markets ended in red for the second consecutive week due to persistent selling pressure even as RBI cut policy rates by 25 bps and took a cautious stance on the economic recovery, while a forecast of a deficient monsoon added to the rout.
The sensex resumed lower at 27,770.79, but firmed up to 27,959.43 on initial buying by funds and other participants to enlarge their portfolios.
However, it fell immediately to 26,551.97 due to heavy selling pressure following cautious stance of RBI coupled with forecast of deficient monsoon before concluding at 26,768.49, and showing a loss of 1,059.95 points or 3.81 per cent.
It has lost 1,189.01 points or 4.26 per cent in two weeks.
The CNX 50-share Nifty also fell by 318.95 points or 3.78 per cent to end at 8,114.70. It has also dropped by 344.25 points or 4.07 per cent in two weeks.
The Reserve Bank cut interest rate by 0.25 per cent for the third time this year but hinted there may not be any more cuts in the near-term sending stock markets in a tizzy.
Meanwhile, monsoon is expected to be “deficient” as per the forecast of IMD , triggering fears of drought.
Rate sensitive sectors –realty, banking and auto — suffered the most.
In the overseas market, Greece postponing repayment of an IMF loan added to the negative sentiment. Global market is cautious regarding Greek issue.
Foreign portfolio investors (FPIs) sold a net amount of Rs 1,203.02 crores shares during the week as per the SEBI’s record including the provisional figure of June 5.
26 scrips out of the 30-share sensex pack ended lower while only four finished higher.
Major losers were Sun Pharma (12.14 pct), ICICI Bank (10.34 pct), Tata Motors (8.10 pct), SBI (7.32 pct), VEDL (7.09 pct), Hindalco (7.01 pct), ITC (6.72 pct), ONGC (6.53 pct), Axis Bank (6.30 pct), Tata Power (5.55 pct), Tata Steel (5.31 pct) Bajaj Auto (5.00 pct), Hero Motocorp (4.42 pct), M&M (4.37 pct) and Cipla (4.12 pct).
However, Coal India rose by 3.65 per cent followed by RIL 3.29 per cent , NTPC 2.52 per cent and Larsen 1.63 per cent.
Among the S&P BSE sectoral indices, Realty fell by 8.19 per cent followed by Bankex 6.14 per cent , HC 5.84 per cent, Auto 5.14 per cent, FMCG 4.52 per cent, CD 3.82 per cent, Metal 2.77 per cent and Power 2.48 per cent.
Small-cap and Mid-cap indices also dropped by 3.80 per cent and 3.38 pct respectively due to fresh selling pressure from retail investors.
The total turnover during the week on the BSE rose to Rs 16,643.47 crores from Rs 13,512.28 crores last week while for NSE, it fell to Rs 82,255.38 crores from Rs 1,10,289.59 crores.