Nifty sees worst weekly decline in 3 months despite rebound

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The Indian market started off on a weak note on Monday, amid rising geopolitical tensions between Russia and Ukraine. It closed flat at the end of the trading session.

On Tuesday, the market recovered from steep losses in early trade and ended with modest cuts. Apart from escalating geopolitical tensionscrude oil price soaring to a 7-year high weighed on sentiments. Even after a sharp recovery, NIFTY and Sensex closed 114 and 382 points lower, respectively.

On Wednesday, the market extended declines for the sixth consecutive day. After trading higher for the most part of the day, the indices saw some selling in the last hour of trade and ended in the red. Autos and financial shares declined, while realty, metals and consumer durables shares jumped. 

Nifty chart for the week

Indian equity shares posted deep losses on Thursday, amid a broad-based sell-off after Russia announced a military operation in Ukraine. Sensex fell more than 2,700 points to end the day at 54,529, while the Nifty closed 816 points to close the day at 16,248. This was the 4th worst daily fall witnessed by the markets.

On Friday, the market opened with a gap-up opening and continued to stay positive throughout the day.  The losing streak was finally broken as Western sanctions on Russia, following its attack on Ukraine, stopped short of the harshest measures. All the sectors closed in green with PSU Banks and Power sector topping the chart. However, the Nifty registered its worst weekly decline in 3 months to end 3.6% lower during the period. 

Here is a quick recap of the market moving developments:

Russia Ukraine conflict and crude oil prices: Even though the market made a rebound on Friday, analysts caution that markets could remain volatile in the near-future. The looming uncertainty over the geopolitical tension combined with the increasing crude oil prices would keep the investors on edge going forward. We prepared a detailed note on the impact of Russia-Ukraine crisis on India, and what investors should do now. 

Top Nifty gainers and losers for the week

Good news for Paytm investors - Two big brokerage firms have given a BUY call on the Paytm shares and increased the target. The news did not help the stock much as the overall market sentiments were negative. The stock declined 3.88% during the week and closed at Rs 790 per share. 

Top Sectoral gainers and losers

FedFina files for IPO - Fedbank Financial Services Ltd (FedFina) which is the subsidiary of Federal Bank has filed draft papers with the SEBI to raise Rs 1700 crore via IPO. Post the issue, Federal Bank will continue to own more than 51% of the outstanding share capital post the listing. Check our initial analysis of the company.

HDFC Block deal - The HDFC shares are continuously falling with parent company shares taking the maximum hit. Societe Generale has offloaded shares worth Rs 1,730 crore through an open market transaction, while BNP Paribas Arbitrage bought shares of HDFC at the same price. Check our detailed report on the block deal.

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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