Disappointing quarterly results, combined with foreign fund outflows and negative global cues, pulled the Indian equity market lower during the week ended on Friday. Index-wise, the volatile week saw the S&P BSE Sensex decline by one per cent, while the NSE Nifty50 edged-lower by 1.16 per cent.
“Domestic markets witnessed volatile trade tracking lacklustre global cues as political uncertainty in the US and worries about weakening global economic growth weighed on investor sentiment,” SMC Investments & Advisors CMD D.K. Aggarwal told IANS.
“Even some strength in the rupee failed to give much fillip to market. The December quarter earnings have been a mixed bag so far.” According to Geojit Financial Services’ Head of Research Vinod Nair: “Mid and small caps continued to underperform as mixed quarter earnings dragged investor’s focus from riskier portfolios.”
“Additionally, apprehension over governments’ ability to meet the fiscal target of 3.3 per cent of GDP in FY19 due to lower tax revenue and higher fiscal expenditure.”
Consequently, the BSE Sensex declined 1 per cent or 361.07 points to close at 36,025.54 points. The NSE Nifty50 closed at 10,780.55 points, down 1.16 per cent or 126.4 points lower on a week-on-week basis. On a stock-specific basis, ITC and Maruti Suzuki stocks faced sell-offs due to lower than expected quarterly results, whereas Sun Pharma and Yes Bank shares gained.