Market wrap: Sensex, Nifty log worst week in 5 months as global cues weigh

Market wrap: Sensex, Nifty log worst week in 5 months as global cues weigh

Last updated: 01 Oct, 2021 | 01:30 pm

Market wrap: Sensex, Nifty log worst week in 5 months as global cues weigh

On Monday, benchmark indices ended almost flat after a volatile session on Monday. 

IT, pharma and FMCG stocks witnessed profit selling. Realty stocks extended recent rally while auto stocks climbed on hopes of better sales performance in September. Oil explorers were in demand on firm crude oil prices.

On Tuesday, the key equity indices ended with steep losses on Tuesday, snapping their three-day rising streak. Global shares were under pressure amid a stronger dollar and rising U.S. Treasury yields. Investors also fretted over China Evergrande Group's debt crisis and a widening power shortage in China.

On Wednesday, key indices ended with modest losses, tracking mixed Asian cues. A spike in U.S. benchmark bond yields and a strong dollar capped gains in equities. Trading was volatile ahead of monthly F&O expiry on Thursday, 30 September 2021.

On Thursday, the equity benchmarks declined for the third session on Thursday amid lack of fresh triggers and mixed global cues.

On Friday, the indices fell further and ended the week with a 1.7% decline from the previous week. Nifty ended below the 17,550 mark. FMCG, telecom, bank and IT declined while power, sugar and Cement stocks were up.

Top gainers and losers

  • All the public sector oil and power companies were the top gainers this week due to increasing oil prices.
  • Two tech stocks were among the top losers, namely Tech Mahindra & HCL Tech. was the top loser.
  • Bharti Airtel was among the top losers as it passed the record date for its rights issue.
  • Asian paints fell due to increasing crude oil prices.
  • Nifty PSU bank was the top gainer this week on privatization hopes.

Here is a quick recap of the market moving developments:

Paras Defence had a bumper listing: Paras Defence and Space Technologies had a bumper listing on Friday as the scrip got listed at Rs 475 against its issue price of Rs 175. This makes the listing gain to be 171%.

Piramal acquires DHFL:  Piramal Enterprises fell 1.45%. Piramal Group on Wednesday announced that it has completed the acquisition of housing finance firm Dewan Housing Finance Corporation (DHFL) at a total consideration of Rs 34,250 cr, which has been paid. As a part of the process, Piramal Capital and Housing Finance (PCHFL), a subsidiary of Piramal Enterprises, will merge with DHFL. The merged entity will be 100% owned by Piramal Enterprises. 

Gold near 6 month low: On MCX, December gold futures were up 0.38% to hover near 6 month lows of ₹45,942 per 10 gram. In global markets, gold prices inched higher but held near a seven-week low, hurt by a strong US dollar. The dollar index dipped slightly today but held near a year's high touched on Wednesday, raising gold's cost for buyers in other currencies. Meanwhile, benchmark US 10-year Treasury yields were a tad lower but held above 1.5%, a level not seen since late June, still posing a challenge for gold.

News around Air India Privatisation: On Friday, media reports said that Tata Sons has won the bid for Air India, even though an official announcement is awaited. However, the government later termed the media reports as “incorrect.” The government is yet to take a decision on the winning bidder for national carrier Air India, secretary of Department of Investment and Public Asset Management (DIPAM), Tuhin Kanta Pandey told reporters.

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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