In an almost anti-climactic finish to an otherwise record-breaking week, benchmark stock indices weakened on Friday , led by worries about geopolitical tensions after the US missile strike in Syria and tepid sentiments in Asian markets. The truncated trading week was characterised by a sense of optimism as the continued liquidity flush helped indices scale new highs.
On Friday, the BSE Sensex settled 0.7%, or 220 points lower, at 29,706 and the NSE Nifty fell 0.7%, or 63 points, to close at 9,198. Both indices gained 0.3% this week.
The Sensex on Wednesday touched a record 30,007.48 for the first time since March 2015 and the Nifty also touched a lifetime high of 9,265. Though the passage of the GST bill boosted optimism among traders, the overarching theme was the unabated institutional buying, said market experts. “While the GST and UP election win by the BJP have helped, constant liquidity from both FIIs and DIIs has been the driving factor in the rally we've been seeing,“ said Vaibhav Sanghavi, co-CEO, Avendus Capital Public Markets Alternative Strategies LLP . “Not only have there been a record number of subscriptions in do mestic mutual funds so far this year, last month there has also been a marked interest in emerging markets from foreign investors.“
BSE Realty and Capital Goods indices saw rallies to the tune of 4.75% and 5.9% this week. RBI's decision to keep rates unchanged at 6.25% did not dampen sentiment. Realty stocks like Sobha and UnitechBSE -5.96 % were in focus during the week while a surge in index movers like RILBSE -2.28 % , HDFC BankBSE 0.20 %, HDFC and L&T helped the broader market maintain higher levels.
While foreign investors bought shares to the tune of `4,697.77 crore during the week, domestic investors pumped in Rs 1,133.01 crore into the market. It was expected that a new tax rate from April 1would lead foreign investors to tone down their purchases of Indian equities. Foreign investors will have to pay a tax rate of 7.5% on short-term gains from stocks, while the General anti avoidance regulations(or GAAR) has also kicked in on April 1.
BSE Realty and Capital Goods indices saw rallies to the tune of 4.75% and 5.9% this week. RBI's decision to keep rates unchanged at 6.25% did not dampen sentiment. Realty stocks like Sobha and UnitechBSE -5.96 % were in focus during the week while a surge in index movers like RILBSE -2.28 % , HDFC BankBSE 0.20 %, HDFC and L&T helped the broader market maintain higher levels.
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