Mumbai, Sep 29: The equity market remained under pressure for the fourth consecutive week, as BSE Sensex crashed by 614.46 points or 1.67 pc to settle at 36,227.14 in the week ended Friday amid mixed global shares, following renewed uncertainty over US-China trade relations.
The Nifty 50 index fell 212.65 points or 1.91 per cent to settle at 10,930.45. The first day of the trading, Monday marked the day when the latest round of tariffs which target products from both the US and China came into effect.
Global shares were also under pressure after US Federal Reserve on Wednesday announced hike in interest rates by 25 basis points, as widely anticipated, and indicated its intent to tighten once more in December.
Domestic investors turned cautious after the government raised import tariffs on select goods. Trading was volatile as traders rolled over positions in the F&O segment from the September 2018 series to October 2018 series. The September 2018 F&O contracts expired on September 27.
The BSE Mid-Cap index fell 832.43 points or 5.34 pc to settle at 14,763.20. The BSE Small-Cap index fell 1332.42 points or 8.45 pc to settle at 14,430.68.
Trading for the week began on a negative note as it fell 536.58 points or 1.46 pc to settle at 36,305.02. The Nifty 50 index fell 168.20 points or 1.51 pc to settle at 10,974.90 on selling in financials and automobiles stocks.
On Tuesday, it bounced back as the Sensex rose by 347.04 points at 36,652.06. The Nifty index too gained by 100.05 points at 11,067.45 on bargain hunting emerged after steep losses in past few trading sessions.
Next three sessions, the equity market remained negative as on Wednesday it was weighed down by IT and FMCG shares as the Nifty managed to stay afloat above the key 11,000 level. The Sensex fell 109.79 points at 36,542.27. The Nifty 50 index fell 13.65 points at 11,053.80 as volatility creeped in a day ahead of expiry of
derivative contracts for the month of September. Investors were cautious ahead of US Federal Reserve's decision on interest rates, which will be declared later in the global day.
On Thursday, the Sensex declined by 218.10 points at 36,324.17 and the Nifty fell by 76.25 points at 10,977.55 ahead of the futures and options (F&O) expiry and mixed global cues.
On the last day of the week on Friday, the sensex fell 97.03 points at 36,227.14. The Nifty too eased by 47.10 points at 10,930.45 weighed by losses in Larsen & Toubro, Yes Bank and Maruti Suzuki India.
The major Sensex losers were Yes Bank by 19.20 pc, Tata Motors by 10.69 pc, Mahindra & Mahindra by 10.08 pc, Adani Ports & Special Economic Zone by 9.27 pc, Bharti Airtel by 9.17 pc, Maruti Suzuki India by 8.57 pc, Hero MotoCorp by 7.38 pc, Tata Steel by 7.08 pc, Power Grid Corporation of India by 5.87 pc and Larsen & Toubro by 4.89 pc.
The major Sensex gainers were Tata Consultancy Services (TCS) by 3.84 pc, Reliance Industries by 3.4 pc, Infosys by 3.05 pc, Axis Bank by 2.16 pc, HDFC Bank by 1.87 pc, Vedanta by 0.89 pc and NTPC by 0.15 pc.
On the macro front, Finance Minister Arun Jaitley on Monday assured that there will not be any liquidity crunch for non-banking financial companies (NBFCs), mutual funds and small and medium enterprises (SMEs).
On Sunday, Securities and Exchange Board of India (Sebi) and Reserve Bank of India (RBI) had issued similar statements saying that the RBI and the Sebi are closely monitoring the recent developments in financial markets and are ready to take appropriate actions, if necessary. These statements had some impact on the stock
market in the initial trade when both the indices opened higher, but soon turned negative. The government on Wednesday increased import duty on 19 'non-essential items' which include air conditioners, refrigerators, washing machines and ATF (aviation turbine fuel). Rates on compressor for air conditioners and refrigerators are also hiked to 10 pc from current 7.5%. The new import duty rate on ATF will now be 5 pc from nil earlier. These changes aim at narrowing the current account deficit (CAD). The new rates will be effective from midnight.
Overseas, the US-China trade war remained in focus last week with tariffs from both parties going into effect on Monday. Washington had announced 10 pc duties on USD 200 billion of Chinese imports, which prompted Beijing to respond with tariffs on USD 60 billion of US goods. Last Friday, the media reported that China had called off planned trade talks with the US in the wake of a new round of duties.
On Tuesday, US President Donald Trump reiterated his administration's stance on trade, telling the United Nations General Assembly that his country would "no longer tolerate abuse" on that front. (UNI)