Mumbai: Indian bourses turned into a consolidation mode after nearing the crucial 16,000 resistance as both the benchmark Sensex and Nifty shed more than 1% in the week after global markets turned vulnerable to the Chinese counterpart.
Analysts said the market is expected to consolidate at current levels in the absence of any major trigger and once breached the 16,000 strong resistance, it may get a rally.
India’s industrial production data and monsoon rains, which has shown signs of revival in the past few days, apart from global trend will influence the domestic markets.
In the week till 5 September, after a surge of 291 points on Friday, the Bombay Stock Exchange 30-share barometer ended the week lower at 15,689.12, registering a net fall of 233.22 points or 1.46% from its last weekend’s close.
The broader 50-share Nifty of the National Stock Exchange also finished the week down 51.95 points or 1.10% at 4,680.40 from its previous weekend’s close.
Foreign Institutional Investors pulled out Rs904 crore in the initial four days of the week under review. They had pumped in more than Rs4,900 crore during August.
On the global front, the US stocks scored impressive gains on Friday despite the unemployment rate jumped to a 26-year high of 9.7% in August.
The Direct tax collections by the government for the first five months of current fiscal grew to Rs87,888 crore, a meagre 4.12% growth which is attributed to tax refunds paid during the period.
India’s largest private sector firm, Reliance Industries fell by 4.32% in the week.
Auto sector was exceptionally strong on heavy buying interest during the week after key auto companies announced robust sales in August.
India’s prominent car maker Maruti Suzuki spurted by 8.75% as its sales grew by 41.6% in August. Hero Honda was up 6.99%, Mahindra & Mahindra rose 4.61% and Tata Motors gained 3.79%.
Similarly, country’s second largest mobile services provider by sales Reliance Communications gained 10.1% over the week.
The trading volume was relatively low on BSE at Rs30,493 crore from Rs31,262.14 crore during the last week. The turnover on NSE also fell to Rs88,964 crore from Rs91,567.78 crore.