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Bears hit with retribution, equities slide for fourth week

Mumbai :Indian equities lost further ground for fourth week in a row as both the BSE benchmark Sensex dipped to 14 month lows and the broader Nifty fell below the key 7,700-mark, with key indices witnessing massive weekly loss not seen more than five years.

Sentiment was hit as the week only witnessed a single bargain hunting gains mirroring a recovery in global stocks.

Already bogged down by the global uncertainty over China slow down, the market expected a balm in the absence bad news from China from its declaration of two-day holiday to commemorate the end of World War II.

The government ruling to propel the investors sentiment by not levying Minimum Alternate Tax (MAT) on gains made by FPIs, and also RBI would consider domestic and global deflation trend on dictating its policy rates did not helped at the ground level to pick-up the stock momentum.

The free fall the week witnessed as investors sentiment tangled in web of insecurities driven by concerns over future economic conditions amid data of deficit monsoon with country receiving 12 per cent less rainfall this year would provoke poor agriculture output.

The bearishness also attributed to the continued FII sell-off amid key macro datas of slow-down in GDP growth by 7 per cent this quarter from previous 7.5 per cent and manufacturing PMI to 52.3 per cent from 52.7 per cent.

The uncertainty over key US Federal Reserve rate hike in September on the back of its strong economic data also loomed the trading sentiment.

The Sensex resumed higher at 26,469.42 and traded to high of 26,504.73 and crashed to low of 25,119.06 before ending the week at 25,201.90, showing a massive loss of 1,190.48 points, or 4.51 per cent.

Similarly, the broader CNX 50-share Nifty index also tanked by a huge 346.90 points, or 4.34 per cent to end at 7,655.05 after hitting a low of 7,626.85 during the week trade.

09051235 Rate sensitive stocks led the pack on heavy selling followed by Capital Goods and PSUs.

Foreign portfolio investors (FPIs) continued their selling pressure as they sold shares net Rs 4,385.31 crore during the week as per the SEBI’s record including the provisional figure of September 4.

Among the S&P BSE sectoral indices, Power dropped by 7.15 pct, followed by Bankex 6.42 pct, Auto 5.67 pct, Capital Goods 5.47 pct, Consumer Durables 4.17 pct, Metal 3.85 pct, Oil & Gas 3.55 pct, Healthcare 2.89 pct, Realty 2.77 pct, FMCG 2.67 pct, Teck 1.98 and Information Technology 1.95 pct.

The BSE Mid-Cap Index dropped by 399.51 points or 3.71 pct to settle at 10,359.90. The BSE Small-Cap index tumbled by 387.58 points or 3.53 per cent to settle at 10,605.24.

Among the 30-share Sensex pack, all the 30 shares in the Sensex pack declined in the week end.

Major losers were Bhel (11.91 pct), M&M (9.78 pct), Hindalco (9.66 pct), SBIN (9.71 pct), ICICI Bank (9.06 pct), Axis Bank (7.72 pct), ONGC (7.37 pct), NTPC (5.88 pct), Tata Motors (5.16 pct), Larsen (5.14 pct) HDFC (4.72 pct), Hero Motoco (4.51 pct) Tata Steel (4.18 pct), Reliance Ind (4.09 pct), Bharari Airtel (3.42 pct) and ITC (3.42 pct).

Total turnover at BSE and NSE declined to Rs 12,374.23 cr, and 89,759.01 cr from the last weekend’s level of Rs 18,931.54 crs and Rs 1,20,565.45 crs, respectively.