Market snaps seven-week rally; PSU Banks worst hit

Indian equity markets snapped seven weeks rising momentum to finish 0.5 percent lower but touched fresh record highs in the volatile week ended December 22 amid mixed global cues and fear of rising covid cases in India.

For the week, BSE Sensex shed 0.52 percent or 376.79 points to finish at 71,106.96, while Nifty50 declined 107.25 points or 0.49 percent to end at 21,349.40. On December 20, the Sensex and Nifty hit fresh milestone of 71,913.07 and 21,593, respectively.

The BSE Small-cap index hit fresh record high of 42,648.86 but ended on a flat note for the week. PC Jeweller, Salasar Techno Engineering, Gallantt Ispat, Sangam (India) and Hindustan Copper rose 20-60 percent, while IIFL Finance, Allcargo Gati, Sunteck Realty, Man Industries (India), Hindustan Construction Company, Gujarat Ambuja Exports and
Spencer Retail were among the losers.

BSE Mid-cap Index touched fresh record level of 36,483.16 during the week but for the week the index fell nearly 1 percent. Losers included Indian Bank, Union Bank of India, Dalmia Bharat, SJVN, Mahindra & Mahindra Financial Services and Power Finance Corporation, while gainers included Oil India, Castrol India, IRCTC, Voltas and Gujarat Fluorochemicals.

The BSE Large-cap Index also hit fresh record high of 8,277.58 but shed 0.4 percent. Gainers included Varun Beverages, HDFC Asset Management Company, One 97 Communications (Paytm), Zydus Lifesciences, while losers were Bandhan Bank, Adani Enterprises, Indus Towers, Mahindra and Mahindra and HDFC Life Insurance Company.

In terms of the market value, Reliance Industries added the most in terms of market value, followed by Hindustan Unilever, HDFC Bank and Nestle India. On the other hand, ICICI Bank, Bajaj Finance and Tata Consultancy Services lost the most of their market-cap.

Among sectors, Nifty PSU Bank index plunged 3 percent, Nifty Media index down 2 percent, Nifty Auto index down 1.4 percent, and Nifty Metal index shed 1 percent. On the other hand, Nifty FMCG and Pharma indices added 1 percent each.

Foreign institutional investors (FIIs) turned net sellers in this week, as they sold equities worth of Rs 6,422.24 crore, while Domestic institutional investors (DIIs) bought equities worth Rs 9,093.99 crore. However, in the month of December so far, FIIs bought equities worth Rs 23,310.82 crore, while DIIs purchased equities worth Rs 12,276.19 crore.

Indian rupee ended lower versus US dollar, to finish at 83.15 in the week ended December 22 against December 15 closing of 83.