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In the week ended October 10, the 30-share Sensex fell 271 points, or 1.1 per cent, to close at 26,297, while the 50-share Nifty closed with a loss of 86 points, or 1.07 per cent, at 7,860.
Among the broader markets, the BSE mid-cap and small-cap indices lost 0.3-0.7 per cent.
According to provisional figures provided by stock exchanges, foreign institutional investors sold shares worth Rs 720 crore on Friday. In about three weeks, foreign investors have pulled out about $500 million (Rs 3,000 crore) from Indian markets.
In September, growth in China’s services sector weakened, as new business cooled, a private survey showed on Wednesday, reinforcing signs of a slowdown in the world’s second-largest economy, which could prompt more stimulus measures. The HSBC Purchasing Managers’ Index for services in China, compiled by Markit Economics, stood at 53.5 in September, against a 17-month high of 54.1 in August.
Exports from Germany, Europe’s largest economy, slumped 5.8 per cent, the steepest monthly decline since January 2009.
Stocks in focus
In the Sensex pack, 18 stocks fell, while 12 rose in the week ended Friday. Sesa Sterlite was the top loser during the week, tumbling eight per cent. Metal and mining stocks declined on global growth worries. Hindalco fell three per cent.
In the pharmaceuticals space, Dr Reddy’s Laboratories and Sun Pharmaceutical Industries declined five-seven per cent. Cipla dropped 5.1 per cent. The company said India Ratings & Research, a Fitch group company, had affirmed the company’s long-term issuer rating of ‘IND AAA’, as well as ‘IND A1+’ rating of the company’s Rs 1,000-crore commercial paper /short-term debt programme.
Mahindra & Mahindra lost 5.19 per cent. The company said it would stop production for four days this month, across its tractor plants in Rudrapur and Jaipur, owing to weak demand.
Tata Motors declined two per cent. The company said its total sales of commercial and passenger vehicles fell eight per cent year-on-year to 46,118 units in September.
Cigarette maker and index heavyweight ITC lost three per cent, as investors aren’t betting on the stock, fearing weak sales and profits from its cigarette division.
On the gaining front, Bhel surged 10.62 per cent after bagging orders worth Rs 7,800 crore from Tamil Nadu Generation and Distribution Corporation Ltd.
Infosys gained 1.09 per cent at Rs 3,888.95. The company reported a better-than-expected consolidated net profit of Rs 3,096 crore for the quarter ended September. To the surprise of investors, the company announced a one-for-one bonus share issue. Several analysts termed this “Sikka’s gift for the Street”. The company has also declared an interim dividend of Rs 30 an equity share, compared with Rs 20 a share a year earlier.
Week ahead
Amid weak global cues, markets are likely to remain under pressure early next wee. Weak industrial output in August will also weigh on investor sentiment.
The government will release data on Consumer Price Index-based inflation, as well as Wholesale Price Index-based inflation for September.
The quarterly earnings of major companies such as Reliance Industries, Tata Consultancy Services, Bajaj Auto, Hero MotoCorp, HCL Technologies and Axis Bank will also be tracked.
The trend in investment by foreign investors and the movement of the rupee against the dollar will also be watched.
On the global front, market participants will be eyeing US Producer Price Index, as well as jobless claims in that country.
Markets will be closed on Wednesday (October 15), owing to Assembly elections in Maharashtra.
