Markets hit fresh lows on liquidity woes, global cues

Mumbai: National Stock Exchange’s 50-share Nifty shed nearly 1% on Friday to its lowest close in seven months, in tandem with weaknesses in global markets and beset by a host of domestic factors such as the liquidity crunch, weak currency and rising oil prices.

BSE’s 30-share Sensex shed 1.01% or 340.78 points to close at 33,349.31, its lowest close since 4 April, while the Nifty declined 0.94% or 94.90 points to close at 10,030 points, its lowest close since 23 March.

For the week, the Sensex and Nifty declined 2.82% and 2.65% respectively.

“Selling is being witnessed across all segments, with macro indicators worsening due to rising oil prices, a weaker rupee, nervousness with regard to future rate hikes by the Reserve Bank of India (RBI) and the US Federal Reserve along with trade wars being the main causes of concern,” said Hemang Jani, head, advisory, Sharekhan, which is owned by BNP Paribas.

“On the domestic front, the investors will take cues from the upcoming state elections. With changes in market sentiments and macros we feel volatility in the markets may persist,” said Hemang Jani.NextMAds

On Friday, the biggest casualties were Ujjivan Financial Services Ltd and Equitas Holdings Ltd.

Ujjivan Financial Services slumped 17.62% to ₹ 181.15, while Equitas nosedived 23.34% to ₹ 99.05 after the RBI clarified that promoters of small finance banks must list their banking units separately within three years of operations.

Both the stocks, which were listed in 2016, now trade below their respective issue prices.thirdMAds

“I think the larger amount of selling pressure for mid-cap is over. Current sell-off is more to do with large caps,” said Deven Choksey, group managing director, KR Choksey Investment Managers Pvt Ltd.

“Foreign investors are incurring losses elsewhere and selling in India and other emerging markets to make up for it,” said Choksey.

Foreign institutional investors sold a net of $4.94 billion of shares in the year to date, while domestic institutional investors have picked up a net of just over ₹ 1 trillion of shares so far in 2018.fourthMAds

For the week, only two sectoral indices, BSE Realty and BSE Telecom, logged gains.

BSE IT was the worst performing index with a 5.73% decline.

Private lender Yes Bank Ltd was the top loser among Sensex components this week, with a 17.06% decline, as it posted a 3.8% decline in profit in the September quarter owing to higher provisions.

Pharmaceutical major Sun Pharmaceutical Industries Ltd followed with a 9% decline in its share price for the week.