Market fall continues for the second week but gets DII support

Indian market closed negative for the second week ended August 4 amid volatility. After a strong start for the week, the market remained under pressure for the next three days after Fitch downgraded the US credit rating which led to continued selling from foreign investors. However, market recovered some losses in the final session supported by sustained DII buying on the back of robust India’s service sector growth, surplus monsoon, inline earnings and third-highest GST collections in the month of July.

This week, BSE Sensex fell 0.66 percent or 438.95 points to finish at 65,721.25, and Nifty50 lost 0.65 percent or 129.05 points to end at 19,517.

The BSE Small-cap index rose 1.5 percent supported by Lloyds Steels Industries, Digispice Technologies, MPS, Optiemus Infracom, Sanghi Industries, Jai Balaji Industries, HCL Infosystems, Udaipur Cement Works, WPIL and Dilip Buildcon. On the other hand, Sintex Plastics Technology, MSP Steel & Power, Ador Welding, Thangamayil Jewellery, Redington, Shivalik Bimetal Controls, Bhagiradh Chemicals and Industries, Equitas Small Finance Bank, Tracxn Technologies and Bajaj Hindusthan Sugar fell 10-15 percent.

BSE Mid-cap Index ended flat. Gainers included Laurus Labs, IDBI Bank, Lupin, PB Fintech, MRF, Jubilant Foodworks and Ajanta Pharma, while losers were Godrej Properties, Max Healthcare Institute, Piramal Enterprises, Cummins India, Apollo Hospitals Enterprises, Aditya Birla Fashion & Retail and Max Financial Services.

The BSE Large-cap Index shed 0.6 percent dragged by Vedanta, Adani Green Energy, Hero MotoCorp, State Bank of India, Bajaj Finserv, HDFC Asset Management Company and DLF. However, gainers included Zomato, Tech Mahindra, Info Edge India, Bandhan Bank, Life Insurance Corporation of India, SRF and One 97 Communications (Paytm).

Among BSE Sensex, State Bank of India lost the most in terms of marketcap followed by ICICI Bank, ITC and Bajaj Finserv, while Tata Consultancy Services, Infosys and HCL Technologies added the most of their marketcap.

On the sectoral front, Nifty Realty index shed 4.2 percent, Nifty PSU Bank index declined 4 percent, Nifty FMCG index fell 1.7 percent, while Nifty IT index rose 3 percent and Nifty Pharma index up nearly 2 percent.

Foreign institutional investors (FIIs) offloaded equities worth Rs 3545.64 crore, while domestic institutional investors (DIIs) bought equities worth Rs 5,617.33 crore in this week.

This week, the Indian rupee shed 59 paise to close at 82.84 on August 4 against its July 28 closing of 82.25.