Sensex, Nifty Drop Over 2.5% This Week; Equities Wipe Out Rs 5.6 Lakh Crore: Market Wrap
Domestic equities recorded worst weekly losses in nearly seven months.
The Indian market eroded over Rs 5.6 lakh crore from investor wealth this week as the domestic equities recorded worst weekly losses in nearly seven months.
India's benchmark stock indices closed lower for the fourth consecutive day after swinging between gains and losses through Friday. The S&P BSE Sensex closed 221 points, or 0.33%, lower at 66,009.15, while the NSE Nifty 50 declined 68 points, or 0.34%, to end at 19,674.25.
Auto and public-sector banking stocks rose in trade, while the pharma and healthcare sectors declined.
State Bank of India, Maruti Suzuki India Ltd., IndusInd Bank Ltd., Larsen & Toubro Ltd. and Mahindra & Mahindra Ltd. positively contributed to the Nifty 50.
HDFC Bank Ltd., ICICI Bank Ltd., ITC Ltd., Reliance Industries Ltd. and Infosys Ltd. weighed on the index.
HDFC Bank lost Rs 99,571 crore in market capitalisation since last Friday.
On a weekly basis, the headline indices snapped three weeks of advance. The Sensex fell 2.57% and the Nifty was lower by 2.70% this week. This is the steepest fall in a five-day period in nearly seven months since the week ended Feb. 24.
During the week, the market eroded over Rs 5.6 lakh crore from investor wealth as measured by the market capitalisation of companies listed on BSE Ltd.
All sectors dropped this week, with realty, metal and bank sectors declining the most.
The broader market indices ended mixed, with the BSE Midcap ending 0.14% lower and the BSE Smallcap rising 0.04% at the close of the market on Friday.
Fourteen out of the 20 sectors compiled by BSE Ltd. advanced, while six declined. BSE Healthcare fell the most.
The market breadth was split between the buyers and the sellers. About 1,792 stocks rose, 1,842 declined, and 147 remained unchanged on the BSE.
Globally, European stocks declined and U.S. equity futures pared gains as the prospect that central banks would keep interest rates high to fight inflation hurt sentiment.
The Stoxx 600 fell 0.4%. In individual moves, Adevinta ASA soared after the European classifieds company said it received a takeover proposal from private equity investors, including Blackstone Inc. and Permira.
The yen weakened after the Bank of Japan held interest rates, its 10-year yield target, and forward guidance unchanged. In Asian stock trading, a region-wide equity index retraced early declines. Chinese shares rallied.