Nifty Losing Streak Continues Amid Rise in Covid Cases

Stock Market This Week

It was not a good week for investors as bears seem to have taken hold of the market amid negative global cues. Both the major indices along with smallcap and midcap indices tanked during the week. Let us look at how the market shaped up this week.

Indian stock market this week: Nifty movement

The Indian equity market started the week on a positive note on Monday. In the initial hours, the market was trading flat amid negative global cues but closed higher, gaining momentum in the last hour. Yes Bank shares gained on assigning Rs 48,000 crore stressed asset loan portfolio to JC Flowers ARC.

On Tuesday, the Indian equity market closed flat on the negative side as investors were worried that the central bankers' tightening campaign could push the economy into a recession. Bank Of Japan dragged the overall Asian market after a surprise monetary move. Except for IT and Metal, all the sectors were trading in the red.

The Indian equity market tanked on Wednesday amidst strong concerns about an impending recession and a worsening Covid-19 situation in China. Both indices shed a percent for the day. Healthcare/Pharma sector gained because of Covid news and concerns raised at all levels around another wave.

On Thursday, the Indian equity market closed lower for the third consecutive day. The indices started on a positive note amid positive global cues (the US market closed in the green). However, after the first hour, it gave all the gain and traded lower throughout the day. All the major indices closed in the red, with Metal and Auto being the biggest drag.

The Indian equity market tanked on Friday, with two major indices losing more than 1.5%. The smallcap and midcaps lost 4% and 3.4%, respectively. All the major indices closed lower for the day, with PSU banks stocks facing the maximum selling pressure - the index was down 6%.

Market this week India: Top Nifty gainers and losers

Market this week India: Top sectoral gainers and losers

Key highlights of the week:

Share buyback rules to change: SEBI said that it will amend the share buyback regulations and announced a gradual phase-out of stock exchange buybacks. SEBI has said it favors the repurchase of shares by companies from shareholders on a proportionate basis through the tender offer because that is considered more equitable and fair. Also, SEBI has reduced the timeline for completion of the buyback through a tender offer by 18 days.

IPO Updates: KFin Technologies IPO opened for subscription this week and saw 100% subscription. The retail portion was fully booked on the final day. The listing is likely to happen next week. Another IPO that opened for subscription was Elin Electronics IPO. It was fully subscribed on the final day, with the retail portion booked 2.07 times. Three IPO made their debut on the exchanges - all made flat to the negative listing. Sula Vineyards opened flat and closed 7% lower on the first day. Landmark Cars list at a 7% discount to issue at Rs 471, while Abans Holdings makes a flat debut at Rs 270.

Reliance Retail buys Metro India: Reliance Industries has agreed to acquire Metro Cash and Carry (India), the local arm of German wholesaler Metro. Metro entered the Indian market in 2003 and was the first company to introduce a cash-and-carry business in India. It currently operates 31 large-format stores in 21 Indian cities. Reliance has routed the transaction through its subsidiary Reliance Retail Ventures.

Defensive stock in focus: The recent resurgence in Covid infections with fears already around tightening monetary policies and hawkish commentaries by global central banks that could potentially trigger a global recession has dragged India's benchmark indices down by nearly 5% after hitting their all-time highs on December 1. Investors have shifted focus to defensive stocks - Pharma sector stocks are back in demand. FMCG and Consumer Goods continued to perform better than most sectors this week.

This is not investment advice. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future returns.