The special muhurat trading on Sunday gave up some gains and ended in red as the benchmark Sensex ended lower at 27930. The Nifty also ended in red at 8625.70. Initial gains were wiped off as investors started booking profits. The losses were led by the banking, FMCG and power sectors. Dr Reddy’s, Tata motors, power grid and NTPC were the top losers. However the midcap and small cap indices remained upbeat and closed up .50% and 1% respectively.
The benchmark indices – the Sensex and the Nifty ended the past week with marginal gains at 28,061 (up 195 points) and 8,698 (up 86 points) respectively. The indices have been moving in a sideways range for the last one month since there was too much of news flow from around the globe, coupled with geo political tensions and surprise 25 basis points rate cut by the RBI.
Moving ahead, the present geo political tensions are unlikely to have a lasting impact on the economy. Although is causing temporary problems in the short term, the medium term outlook of the market will not be affected. Progress in implementing the GST, good south west monsoons and the rate cut from RBI will keep boosting the investor sentiments.
Concerned by the possible conflict with Pakistan, markets corrected sharply during the last week wiping of profits of the investors. Panic selling was seen as the Sensex tanked 802 points and the nifty sank 271 points to close the week at 27,866 and 8,611.
The Indian benchmark indices – Sensex and the Nifty – ended the winning streak that was going on for the last two consecutive weeks and closed at 28,599 and 8,780 respectively due to selling pressure and profit booking on many counters. The markets had opened last week with a downward gap following the global markets.
Going ahead, the selling pressure witnessed last week is likely to continue. There is a Sharp fall in food prices according to the CPI data for August released last week. The bank of England has kept the rates unchanged in the review meeting but has announced that rates may come down in near future. The key event that the world is watching is the fed meet which starts on Tuesday. The possibility of US rate hike will keep the markets volatile on Monday and if, the rate hike becomes a reality , there could be further sell off in the markets.
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