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Snapping a two-week winning streak, Indian equities finished the week on a dismal note, with the BSE Sensex falling below its crucial level of 26,000 mainly on prospects of US interest rate hike. The hawkish stance of US Federal Reserve chair Janet Yellen as she showed confidence in the US economy, further reinstated the case for an interest rate hike, thus unnerving the market participants.
The slowdown in India’s service sector coupled with weakness in rupee has also weighed on the sentiment across Dalal Street. For the week ended December 4, the Sensex ended at 25,638, down 490 points or 1.8 per cent, while the Nifty50 settled down at 7,782, down 161 points or two per cent.
“Nifty ended the week nearly lower by two per cent as global and local concerns weighed heavy on stocks. Policy measures will be crucial to drive the markets from here on and Parliament’s functioning would be keenly watched,” said Ravi Shenoy, AVP-Midcaps Research, Motilal Oswal Securities.
Bharti Airtel tanked nearly six per cent and was the biggest loser during the week after it announced an investment of Rs 60,000 crore in the next three years for its project aimed at improving network quality. Shares of Chennai-based companies fell during the week as torrential rains and heavy flooding marooned the city.
The week ahead
The government will announce the Index of Industrial Production data for October on Friday. The IIP for the month of September 2015 was recorded at 3.6 per cent, against 6.3 per cent in August. Investors would be hopeful to see the goods and services tax Bill sail through this winter session of Parliament after the CEA led committee has proposed its amendments to end the deadlock over GST.
