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Sensex, Nifty post biggest weekly loss since February

Sensex, Nifty post biggest weekly loss since February

Last updated: 29 Oct, 2021 | 02:34 pm

Market wrap: Sensex, Nifty post biggest weekly loss since February

On Monday, the equity barometers snapped a four-day losing streak and ended with modest gains. Positive global cues lifted sentiment. Bank stocks supported the up move while IT, auto and realty shares dragged. 

On Tuesday, the equity benchmarks ended near the day's high with strong gains amid positive global cues. The Nifty ended above the 18,250 mark. Barring the Nifty Private bank index, all the sectoral indices on the NSE ended in the green.

On Wednesday, key equity indices ended lower, tracking negative global cues. The index hit the day's low of 18,167.90 in late trade. Private banks and metal shares dragged while PSU banks and IT shares advanced. 

On Thursday, the main indices ended with steep losses again. The BSE Sensex slipped below the psychological mark of 60,000 while the Nifty fell below the crucial 18,000 mark. Investors also squared off positions ahead of the monthly F&O expiry today. All sectoral indices on the NSE closed in the red with realty, metal, PSU banks stocks losing the most. 

On Friday, the indices ended with significant losses. At close, the Nifty was down 1.04% ending the week with a 2.45% decline.

Top gainers and losers

  • Quarterly results were the major factor determining top gainers and losers this week.
  • Ultratech posted estimates beating results and Axis Bank missed estimates hence the top gainer and loser respectively.
  • Nifty PSU Bank was the only sector gaining this week. 

Here is a quick recap of the market moving developments:

Morgan Stanley on India: Morgan Stanley has downgraded India and Brazil equities to equal-weight while upgrading the Indonesian market to overweight position. Morgan Stanley said it expects a structural multi-year earnings recovery in India, but at 24 times forward price to earnings it will look for some consolidation ahead of US Federal Reserve's tapering, an RBI hike in February and higher energy costs.

Asian Paints whistle blower situation: Asian Paints fell 2.2% last week after the media reported that a whistleblower flagged off related party transactions (RPTs) carried out by the promoters of Asian Paints. Following the allegation, Asian Paints clarified to the bourses on 24 October 2021, that the company had entered into a technical consultancy agreement with Jayram Nadkarni (ex-employee of the company) and Paladin Paints and Chemicals during the financial year 2005-2006. Pursuant to this agreement, an upfront consultancy charge of Rs 1.20 crore and a monthly consultancy of Rs 12 lakh for a period of 21 months amounting to Rs 2.52 crore was paid to him for providing necessary technical consultancy, technology knowledge package and process for manufacturing of resins to the company with respect to the products governed by the agreement. As he was an ex-employee, he provided this technical service exclusively to the company. There was no related party relationship existing at this point of time.

IPOs this week: The IPO of Nykaa, with a price band of Rs 1,085-1,125 per share, opened for public subscription on 28 October 2021 and will conclude on Monday, 1 November 2021. Ahead of its IPO, Nykaa on Wednesday said it has raised Rs 2,396 crore from anchor investors. 

Fino Payments Bank also opened for subscription on Friday with an issue size of Rs 1,200 cr at the upper price band. 

IRCTC stock goes through a roller coaster ride: On Thursday, IRCTC shares plunged as much as 29 per cent to hit an intraday low of Rs 650.10 on the BSE after the company informed exchanges that the Ministry of Railway asked it to share half of all the convenience fee revenue it earns. However, post the clarification from the government, IRCTC stock staged a recovery of 39 per cent to hit an intraday high of Rs 906.

IRCTC had collected around Rs 300 crore as 'convenience fee' in FY21.

That's all for this week's market wrap. We will be back with more interesting market insights in the next week!

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