The stock markets remained under intense selling pressure for the second week in a row, with the benchmark S&P BSE Sensex sliding 137 points to end at 20,376.56, mainly due to global growth concerns as well as consistent offloading by foreign institutional investors.
Heavy selling was witnessed in tech, refinery and capital goods sector stocks. However, domestic bourses were fairly resilient despite large scale volatility in global markets.
The Sensex rebounded sharply after a brief plunge below the psychological 20,000 mark on the back of heavy profit-booking by operators.
Also, strong buying sentiment in beaten-down counters with bargain-hunting in healthcare, auto, metal, power and financials counters helped the market to stay in green in rest of the four trading sessions.
Concerns relating to the health of China’s economy and US Fed’s decision to cut its stimulus further by USD 10 billion weighed on the market sentiment.
The Sensex resumed sharply lower at 20,479.03 and dropped further to hit intra-day four-month low of 19,963.12 before regaining to settle the week at 20,376.56, still showing a loss of 137.29 points or 0.67 per cent. It had lost a massive 619.71 points, or 2.93 per cent, in the last week.
The NSE 50-share Nifty also declined by 26.30 points, or 0.43 per cent, to finish at 6,063.20.
Jignesh Chaudhary, Head Of Research, Veracity Broking Services said, “The Indian equity market started with a bearish trend but there was a recovery and finally they managed to close on the positive side on the last trading day of the week.
“There are many important economic factors to watch in the coming trading weeks. India has CPI numbers to be released and other important data whereas in US the sales data is expected to depreciate. The technical indicators are suggesting a bearish trend for the Indian equity markets.
“The BSE Sensex is expected to trade in the range of 20,249 to 20,355 and CNX Nifty is expected to trade in the range of 6,016 to 6,048.”
Foreign Institutional Investors (FIIs) sold shares worth Rs 1,353.66 crore during the week as per the figures issued