Mumbai The equity market crashed during the week ended on Friday as the BSE Sensex dropped by 737.53 points to 35,808.95 or 2.02 per cent, two-week-low on fresh concerns about rising crude
oil prices resurfaced, with Brent crude oil futures firming up amid mixed global cues.
Sustained foreign fund outflow and fresh weakness in the rupee against the dollar too dragged the market.
The Nifty 50 index fell 219.20 points or 2% to settle at 10,724.40.
The BSE Mid-Cap index slid by 388.27 points or 2.71 pc to settle at 13,940.54. The BSE Small-Cap index fell 403.94 points or 2.96 pc to settle at 13,252.81.
Trading for the week began on a negative note. Key equity indices declined on Monday as the Sensex fell 151.45 points at 36,395.03, its lowest closing level since January 31, due to selling pressure in index pivotals. Investors worried over global uncertainties amid lingering fears over US-China trade talks and global growth.
On Tuesday, the Sensex fell 241.41 points at 36,153.62.
Very next day, the Sensex regained the psychological 36,000 after sliding below that level in intraday trade. The Sensex fell 119.51 points or 0.33% to settle at 36,034.11.
The market ended on a mixed note on Thursday as key benchmarks settled with modest losses while mid- and small-cap indices finished with gains. The Sensex fell 157.89 points or 0.44 pc to settle at 35,876.22.
On the last day of the week, the sensex ended with modest losses after a volatile session of trade as the BSE Sensex, fell 67.27 points at 35,808.95.
Bank shares declined. State Bank of India by 7.75 pc, Axis Bank by 4.71 pc, ICICI Bank by 3.63 pc, HDFC Bank by 1.04 pc and Kotak Mahindra Bank by 0.91 pc.
Yes Bank surged 25.11 pc after the bank announced after market hours on Wednesday that the Reserve Bank of India (RBI) assesses compliance by banks with extant prudential norms on income recognition, asset classification and provisioning (IRACP) as part of its supervisory processes. As part of this process, Yes Bank has received the Risk Assessment Report for FY2018. The report observes NIL divergences in the bank’s asset classification and provisioning from the RBI norms.
Mahindra & Mahindra (M&M) fell 8.08 pc. M&M launched new SUV, the XUV300 at an ex-showroom starting price of Rs 7.90 lakh for the Petrol W4 variant and Rs 8.49 lakh for the Diesel W4 variant (one price applicable across India). The announcement was made during market hours on Thursday.
ONGC fell 5.85 pc. The company’s net profit rose 64.8 pc to Rs 8,262.70 crore on 20.4 pc increase in net sales to Rs 27,694.09 crore in Q3 December 2018 over Q3 December 2017. The result was announced after market hours on Thursday.
Further, the ONGC board approved a proposal for buyback of its equity shares. Around 25.29 crore equity shares of the company will be bought back at the price of Rs 159 per equity share payable in cash. The total cost of this share buyback will not exceed Rs 4,022 crore, ONGC said in its statement. The process of buyback is likely to be completed in February 2019.
Infosys fell 2.38 pc. Infosys said it has inaugurated its Digital Innovation and Design Center in Providence and announced a partnership with the Community College of Rhode Island (CCRI) to build and launch the Digital Economy Aspirations Lab (DEAL) to enable and develop students for the digital jobs of the future. The Providence Center will help close the gap for design and human-centric skills in technology fields and enhance Infosys’ ability to provide digital technologies and breakthrough innovations at the intersection of industry and design for its clients.
Reliance Industries (RIL) fell 2.65 pc. RIL announced that Reliance Brands (RBL), a subsidiary of the company, has acquired a further stake of 2.5 pc in Future101 Design (Future101) on 7 February 2019, for a consideration of Rs. 1.99 crore, taking its total stake in Future101 to 15 pc.
On the macro front, India’s industrial production (base year 2011-12=100) increased at improved pace of 2.4 pc in December 2018, compared with 0.3 pc growth recorded in November 2018. The industrial production growth for November 2018 has been revised downwards from 0.5 pc increase reported provisionally. The data was released by government after market hours on 12 February 2019.
The all-India general CPI inflation eased to 2.05% in January 2019 (new base 2012=100), compared with 2.11% in December 2018. The corresponding provisional inflation rate for rural area was 1.29% and urban area 2.91% in January 2019 as against 1.50% and 2.91% in December 2018. The core CPI inflation eased to 5.36% in January 2019 compared with 5.66% in December 2018. The data was released by government after market hours on 12 February 2019. India’s wholesale price inflation (WPI) cooled to 2.76% in January from 3.8% in December, data released on Thursday showed. It was 3.02% in January last year.
In global stock markets, shares were mixed as traders awaited the conclusion of U.S.-China talks in Beijing. Traders awaited results of a meeting on Friday between the Trump administration’s top two negotiators and Chinese President Xi Jinping in Beijing. There has been no decision to extend a March 1 US deadline for a deal, White House economic adviser Larry Kudlow reportedly said on Thursday.