Home ECONOMY Negative global and local cues dip the markets for third straight week

Negative global and local cues dip the markets for third straight week

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Mumbai, March 28:

Negative geo-political cues, coupled with expectations of subdued fourth quarter earnings results, led a benchmark index of Indian equities markets to the third straight week of consolidation during the trade ended March 27.

stock_exchange sensex The benchmark 30-scrip Sensitive Index (Sensex) of the S&P Bombay Stock Exchange (BSE) fell 802.44 points or 2.83 percent during the weekly trade session ended March 27.

The Sensex ended March 27 trade at 27,458.64 points. For the previous weekly trade ended March 20, the BSE Sensex had closed at 28,261.08 points.

The 30-scrip Sensex had lost 242.22 points or 0.84 percent during the weekly trade session ended March 20.

The Sensex ended March 20 trade at 28,261.08 points from 28,503.30 points close in the weekly trade ended March 13.

The consolidation in the Indian markets continued since the weekly close of March 13, when the S&P BSE Sensex plunged 945.65 points or 3.21 percent to its worst weekly fall in 2015.

The Indian markets were cautious about the geo-political tensions in the Middle East and the March F&O (future and options) expiry.

“The F&O expiry and potential geo-political issues in Middle East likely impacted markets during the week,” Dipen Shah, head, private client group research, Kotak Securities, told IANS.

According to Shah, going ahead, there are no immediate triggers for the markets on the domestic front and hence, markets may continue to be dictated by global factors. Quarterly results are also expected to be subdued.

“Further action on the fiscal or monetary front, if any, can give some upside to the market,” said Shah.

Vinod Nair, head, fundamental research, Geojit BNP Paribas said that India is in the later half of the consolidation since Nifty is at 9,100 points level.

“Global concerns in middle east has added flare to the consolidation. After the steep correction on the expiry day, banks and IT have been able recover on short covering,” said Nair.

“No further negative surprise from fourth quarter and post budget reforms form the second shift of budget-session from 20th April will influence the market ahead,” added Nair.

The markets were extremely volatile throughout the week. Friday was the eighth consecutive session when the markets either ended flat or in the red. On Thursday the markets closed 654 points or 2.33 percent down.

The BSE Sensex had closed Wednesday’s trade down 50 points. On Tuesday, it slipped by 30 points. On March 23, the market closed down 69 points.

In the previous week, the Sensex closed Friday’s trade 208.59 points down. On March 19, it declined by 152.45 points and on March 18 it closed the day’s trade down 114 points.

The major Sensex gainers on Friday were: Hindalco, up 2.97 percent at Rs.133.55; Infosys, up 2.68 percent at Rs.2,201.95; State Bank of India (SBI), up 2.59 percent at Rs.263.55; Larsen and Toubro (L&T), up 2.50 percent at Rs.1,676.85; and ICICI Bank, up 2.23 percent at Rs.314.40.

The losers were: Bharti Airtel, down 5.64 percent at Rs.376.20; Wipro, down 3.45 percent at Rs.612; Reliance Industries, down 2.27 percent at Rs.811.75; Mahindra and Mahindra, down 1.72 percent at Rs.1,182.60; and ITC, down 1.72 percent at Rs.317.10. IANS

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