In the stock market this week, the main indices Sensex and Nifty declined and this has happened for the second consecutive time. BSE Sensex fell 444.71 points or 0.51 per cent to close at 85267.66 while Nifty50 fell 139.5 points or 0.53 per cent to close at 26046.95. Broader indices have also moved in line with the main indices and each has fallen by about 0.4 per cent, extending their losing streak for the second consecutive week.
The reasons for this were continuous selling by foreign investors, weakening of the rupee and uncertainty over the US-India trade deal. Foreign institutional investors sold shares worth Rs 9201.89 crore this week while domestic institutional investors bought shares worth Rs 20184.70 crore, which provided some support, but the fall could not be stopped.
Nifty defense index fell 3 percent
Among sectors, Nifty Defense index fell 3 per cent while Nifty Media PSU Bank IT and FMCG were down 1 to 1.7 per cent. On the other hand, Nifty Metal index rose 2 percent and Nifty Consumer Durables closed 0.4 percent higher. Overall, there was an atmosphere of caution in the market and investors were keeping an eye on America’s policy and global signals. The week started sluggishly, Nifty slipped below 26000 and the pressure has increased due to concerns about trade deal with America.
Midcap and smallcap indices fell
In such a situation, some stocks showed excellent performance and gave double digit returns, which is a relief for investors in the falling market. Although the complete list was not available, there were stocks which shone despite the fall and gave good profits to the investors. In the broader market also, midcap and smallcap indices fell but selected stocks won. According to the report of Moneycontrol, experts say that now the market has become of stock pickers, which means only the stocks with good fundamentals will do, there will be pressure on the rest. Nifty is above 21 day moving average of 26020 in short term which is a positive signal and if it remains above 26000 then it can go from 26200 to 26250 with short covering. Momentum indicators on the weekly chart are in buy mode which shows strength. But due to the decline, it is important to be cautious because FII selling is not showing any signs of stopping. Balance is being maintained due to DII purchases but if global signals are bad then there may be pressure.
rise in these stocks
This week, BSE Smallcap index also fell by 0.4 per cent and many stocks fell heavily. Stocks like Refex Industries, Kothari Industrial Corporation, Hubtown, Bliss GVS Pharma, Jagatjit Industries, Websol Energy System, Fino Payments Bank, Deccan Gold Mines and Reliance Infrastructure fell by 12 to 23 per cent, causing huge losses to investors. There was an atmosphere of decline in the market, pressure increased due to selling by foreign investors and small cap stocks were also affected.
Shares of many smaller companies fell sharply as investors became cautious and ran away from risky stocks. But amidst the decline, some stocks performed brilliantly and gave good returns. Stocks like Fermenta Biotech, Stallion India Fluorochemicals, Rolex Rings, Shree Adhikari Brothers Television, Dolat Algotech, Transformers & Rectifiers India, Suratwala Business Group, Praveg, Dredging Corporation India, Blue Cloud Softech Solutions and EFC India gained 16 to 26 per cent.
Overall, this week was mixed for investors, the main indices fell and the broader market also fell, but some stocks have raised hopes by giving double digit returns. If you are an investor then adopt a stock specific approach, focus on good companies and take a long term view because there are ups and downs in the market. The market will keep an eye on America’s policy and economic data next week. Rupee is also weak which is making imports expensive. This was the second consecutive decline of the week but some sectors like metal did well.
