Weekly review: Market take heavy beating, tumble 983 points

Mumbai: The market cracked the impressive eight-week record setting-run, thanks to the much awaited Union Budget, the Sensex were severely beaten to tumble 983.69 points to finish at 35,066.75 and the broder Nifty slid well below the key 11,000-mark at 10,760.60.

The key indices resumed the record-setting cycle on Monday following the upbeat economic survey tabled in Parliament ahead of the budget reiterating India would be the world fastest growing economy with GDP estimates of 7-7.5 percent 2018-19, giving fresh impetus to investor sentiment.

It was shortlived, as the anxiety ahead of Union- Budget and subsequent tabling brought-out big disappointment as far as investors is concerned, while it was nothing short of blood-bath in Dalal-street as Bears gained upper-hand.

Investor expectation of good balance between fiscal discipline amid growth withered on Budget proposals tabled in the Parliament by Finance Minister Arun Jaitley.

The budget proposals of 10 percent long term capital gains tax on equities and overshooting of fiscal deficit target quashed investor optimism.

The volatility in rupee and bonds over fiscal slippage along with primary concern over further rise in inflation amid RBI taking more hawkish tone in upcoming monetary policy meet led to the market turmoil.

The Sensex started the week higher at 36,106.36 and hovered between all-time record high of 36,443.98 before budget and subsequent tumble after the budget at 35,006.41, it closed the week at 35,066.75, showing a slump of 983.69 or 2.73 percent.

(The Sensex garnered 3,578.59 points or 10.90 percent during past eight week sessions).

The Nifty also resumed the week up at 11,079.35 and marked all time high of 11,171.55 and later to a low of 10,736.10 before ending the week at 10,760.60, showing a fall of 309.05 points, or 2.79 percent.

All the sectoral indices got severely punished led by Realty, Consumer Durables, HealthCare, PSUs, Power, Metals, Banks, Oil&Gas, Capital Goods, FMCG, IPOs, Teck, Auto and IT sectors.

The broader midcap and small cap shares also took heavy a hammering.

Meanwhile, foreign portfolio investors (FPIs) and foreign institutional investors (FIIs) bought shares worth Rs 2,526.97 crore during the week, as per Sebi’s record including the provisional figure of February 02, 2018.

The S&P BSE Mid-Cap index dropped 1266.49 points or 7.10 percent to settle at 16,574.70. The S&P BSE Small-Cap index dropped 1494.65 points or 7.73 percent to settle at 17,847.53. Both these indices underperformed the Sensex.

Among sectoral and industry indices, realty fell by 8.53 percent followed by consumer durables 7.10 percent, healthcare 6.40 percent, PSU 5.25 percent, power 5.04 percent, metal 4.28 percent, bankex 3.77 percent, oil&gas 3.53 percent, capital goods 3.37 percent, FMCG 2.30 percent, IPO 2.16 percent, teck 2.01 percent, auto 1.78 percent and IT 1.53 percent.

Among the 31-share Sensex pack, 24 stocks fell and remaining 7 stocks rose during the week.

Dr Reddy was the top sensex loser last week. The stock fell by 15.25 percent,

Tata Steel lost 12.91 percent. The company announced at the fag end of the trading session on 2 February 2018, that it concluded the acquisition of 74 percent stake in Bhubaneshwar Power (BPPL) from JL Power Ventures for Rs 255 crore.

It was followed by Axis Bank 7.95 percent, Bharti Artl 7.69 percent, ONGC 7.59 percent, ICICI Bank 6.56 percent, Tata Motors DVR 6.16 percent, Reliance 6.10 percent, SBI 5.19 percent and Sun Pharma 5.09 percent.

However, Auto major Mahindra & Mahindra (M&M) rose 1.73 percent. The company said its total auto sales rose 32 percent to 52,048 units in January 2018 over January 2017. Domestic sales rose 33 percent to 49,432 units while exports rose 15 percent to 2,616 units in January 2018 over January 2017.

Hero MotoCorp rose 1.51 percent. The company announced during trading session on 2 February 2018, that its total sales rose 31 percent to 6.41 lakh units in January 2018 over January 2017.

It was followed by Indus Ind Bank 1.33 percent, TCS 1.00 percent and HUL 0.20 percent.

The total turnover during the week on BSE rose to Rs 28,417.75 crs as against last weekend’s level of Rs 22,625.37 crores and NSE moved up to 1,96,972.94 crores compared to Rs 1,66,288.96 crores previously.