Market snaps a 4-week rally as FIIs turn sellers, rupee trades lower

Markets took a breather in the week ended on July 28 after rallying for the last four weeks and hitting record highs. The market witnessed volatility amid mixed cues, including better progress of monsoon, FIIs turning net sellers, mixed earnings and interest rate hiked by the ECB and the US Fed. The Federal Reserve kept the door open for further rate hikes based on data.

In this week, the BSE Sensex lost 0.78 percent or 524.06 points to end at 66,160.20, and Nifty50 shed 0.50 percent or 99 points to close at 19,646.

The BSE Mid-cap Index gained 2 percent with REC, GMR Airports Infrastructure, Ajanta Pharma, Power Finance Corporation, Colgate Palmolive (India), SJVN, Zee Entertainment Enterprises, Motilal Oswal Financial Services and ACC climbing 10-20 percent.

The BSE Small-cap index added 1 percent with Thangamayil Jewellery, MSP Steel & Power, Foseco India, Indo Borax and Chemicals, Godfrey Phillips India, Jyothy Labs, Heubach Colorants India, Jai Balaji Industries, Mukand, Jagsonpal Pharmaceuticals, Vesuvius India, Gallantt Ispat, Texmaco Rail and Engineering and Jain Irrigation Systems adding 20-52 percent. On the other hand, Globus Spirits, Abans Holdings, Coffee Day Enterprises, Xchanging Solutions, Jindal Saw, Apcotex Industries, Can Fin Homes, Kriti Industries (India), Sharda Cropchem, Sportking India, Mahindra Logistics, Rail Vikas Nigam, Rane Brake Linings, Tanfac Industries, DCM Nouvelle, Chennai Petroleum Corporation and LG Balakrishnan and Brothers lost 10-18 percent.

The BSE Large-cap Index fell 0.22 percent, dragged by One 97 Communications (Paytm), Tech Mahindra, Kotak Mahindra Bank, Bharat Petroleum Corporation, ITC and Indian Oil Corporation. However, gainers included Tata Motors – DVR, Cipla, Adani Green Energy, Ambuja Cements, Zomato, The Tata Power Company and NTPC.

Among the BSE Sensex league, ITC lost the most in terms of market cap, followed by HDFC Bank, Kotak Mahindra Bank and Asian Paints, while NTPC, Power Grid Corporation of India and Sun Pharmaceutical Industries added the most to their valuations.

On the sectoral front, the Nifty Realty index gained 5 percent, Nifty Pharma index 4.8 percent, Nifty Healthcare index 4.3 percent, and the Nifty Media and Metal indices 3.5 percent each. However, the Nifty Bank, IT and FMCG shed 1 percent each.

In this week, the rupee fell 30 paise to close at 82.25 against the US dollar on July 28, while it closed at 81.95 on July 21.

In this week, foreign institutional investors (FIIs) sold equities worth Rs 3,074.71 crore, while domestic institutional investors (DIIs) bought equities worth Rs 5,233.79 crore. In this month so far, FII bough equities worth Rs 14,623.18 crore and DII sold equities worth Rs 3,672.40 crore.