Indian stock markets end lower, weekly gains trimmed
Mumbai, Aug 7: India’s equity benchmarks closed lower today, trimming their weekly gains as losses in heavyweight financial stocks and rising international crude oil prices weighed on investor sentiment.
The Nifty 50 fell 0.27 per cent to close at 24,570.65, while the BSE Sensex declined 0.58 per cent to settle at 78,499.17.
Despite Friday’s losses, the benchmark indices ended the week higher, with the Nifty gaining 0.8 per cent and the Sensex rising 0.5 per cent.
Trading remained volatile during the week amid the Reserve Bank of India’s monetary policy decision and the introduction of a new closing auction mechanism for stocks linked to derivatives contracts.
“This week was a mixed bag for markets. RBI’s decision to keep rates unchanged was in line with expectations, while the crash in crude oil prices earlier in the week on Middle East peace prospects helped sentiments,” said Sunny Agrawal, head of fundamental equity research at SBICAPS Securities.
Agrawal added that the new closing auction session dominated trading activity, triggering sharp swings at the close and reducing retail participation in derivatives.
Twelve of the 16 major sectoral indices ended in negative territory. However, broader markets outperformed, with the small-cap index rising 2.7 per cent and the mid-cap index advancing 0.9 per cent during the week.
Investors remained cautious ahead of the release of US monthly jobs data, which could shape expectations regarding future policy moves by the US Federal Reserve. US interest rates are closely watched in India and other emerging markets because they influence the dollar, US Treasury yields and foreign investment flows.
According to data from the National Securities Depository, foreign portfolio investors have purchased Indian equities worth a net USD 1.3 billion so far in August, after buying USD 2.1 billion in July.
Among individual stocks, State Bank of India rose 1.1 per cent after reporting stronger-than-expected quarterly earnings, supported by healthy loan growth.
In contrast, Bajaj Finance declined 5.8 per cent, leading losses among non-banking financial companies after a draft Reserve Bank of India proposal raised concerns over restrictions on certain revolving-credit products offered by lenders. (BVI)
