The market extended its decline for second straight week with BSE Sensex lossing another 299.18 points to close 38,090.64 and the broader Nifty falling 73.90 points to finish at 11,515.20.The truncated and volatile week saw the stock market enduring initial bitter losses as rupee stabilized during late session after initial record lows.The key indices fell sharply for the two sessions during start of the week, marking one month lows to revisit 37K-level impacted by escalating trade war concerns and global slide after US President Donald Trump threatened to impose higher tariffs on China, also the negative sentiments on expectation of US Fed rate hike this month.
While the rupee crashed to fresh record lows on rising crude, strengthening dollar and widening current account deficit, the 10 year-yield surged, so did the stocks selling pressure.
However, the market rebounded and capped the weeks larger losses after an government official assurance on measures to support the rupee after a planned review of the economy by Prime Minister Narendra Modi this weekend.The assurance led the rupee recovery from record lows, it was further supported by data released by the Central Statistics Office on cooling of retail inflation (CPI) to 10-month lows at 3.69 percent in August and Wholesale Price index (WPI) inflation to a four-month low of 4.53 per cent in August.
For the week, rupee declined to end the week 71.84 per dollar after hitting record low of 72.92 on Wednesday.
The widespread buying finally reclaimed the key 38K- level.The market was closed on Thursday, 13th September for ‘Ganesh Chathurti’.
The BSE Sensex started the week lower 38,348.39 and hovered between a high of 38,354.52 and low of 37,342. before ending the week at 38,090.64, showing loss of 299.18 or 0.78 per cent.(The Sensex lost 255.25 points or 0.66 per cent during previous week session). The Nifty also resumed lower by 11,570.25 and moved between high of 11,573.00 and low 11,250.20, the index settled the week at 11,515.20, a loss of 73.90 points, or 0.64 per cent. Barring some gains in Power, Metal and Capital Goods counters, selling was led by Auto, IPO, Banks, FMCG, IT, Oil and Gas, Consumer Durables, HealthCare, Realty, PSUs and Teck sectors.The broader midcap and smallcap companies shares also witnessed intense selling activity. The BSE Mid-Cap index fell 154.89 points or 0.94 per cent to settle at 16,349.97.