The domestic equity market settled the volatile week in the red as market participants preferred to stay on the sidelines amid aggressive US Fed tightening and China Covid fear. The benchmark equity index BSE Sensex declined 0.24 per cent to 57,060.87 on April 29 from 57,197.15 on April 22. Likewise, the NSE Nifty index retreated 0.40 per cent to 17,102.55 during the same period.
With a fall of nearly 10 per cent, Coal India emerged as the top loser in the Nifty index. It was followed by Bharat Petroleum Corporation (down 7.83 per cent), Apollo Hospitals (down 7.79 per cent) and Axis Bank (down 6.66 per cent). On the other hand, Hero MotoCorp, HDFC Life Insurance, HUL and Kotak Mahindra Bank advanced between 3 per cent and 10 per cent.
Vinod Nair, head of research, Geojit Financial Services said, "A shrink in the US economy and rate hike expectations in the upcoming Fed meet triggered sell-off in the global market. Domestic market reduced exposure ahead of the shortened next week and opening of India's largest IPO of Life Insurance Corporation."
Among the sectoral indices on the BSE, the Telecom index fell the most by 5 per cent. Oil & Gas (down 3.51 per cent), Metal (down 2.88 per cent), Information Technology (down 2.16 per cent) and TECk (down 2.13 per cent) stood among other major losers. The BSE Auto and BSE FMCG indices gained 0.72 per cent and 0.60 per cent, respectively, in the past five trading sessions.
Yesha Shah, head of equity research, Samco Securities, said, "Globally, the FOMC meeting will be in the limelight and it is widely expected that a 50-basis points hike is on the cards. As market participants attempt to read between the lines of the Fed's policy actions, any surprises can result in panic reactions in global markets. In addition, the unemployment rate in the US will also be monitored closely."
Back home, the largest IPO, LIC, is poised to go public next week on May 4. "Considering the mammoth issue size, the IPO is expected to test investors' appetite and the liquidity routed towards the IPO can mildly influence secondary markets," Shah added.
In the forthcoming holiday truncated week, which marks the start of the new month, market participants would be also watching out S&P Global Manufacturing PMI, scheduled to be released on May 2. The S&P Global India Manufacturing unexpectedly fell to 54.0 in March 2022 from 54.9 in February. Stock markets will remain shut on May 3 on account of 'Id-Ul-Fitr (Ramzan Id)'.
Further, auto and cement companies would be in focus for the coming week as these companies will report their monthly sales figures. In the ongoing result season, traders will also be eyeing the earnings of prominent companies, including Yes Bank, Britannia Industries, HDFC, Inox Leisure, Godrej Properties, Hero MotoCorp, Tata Steel, Adani Green, Kotak Mahindra Bank, Tata Consumer Products, Blue Dart Express, Ceat, Dabur India, Marico, TVS Motor Company, Voltas and Tata Power, among others.
Also read: Sensex tumbles over 460 points, Nifty settles near 17,100; Axis Bank tanks 6%
Also read: What should investors do with Ambuja Cement shares post results?
Copyright©2023 Living Media India Limited. For reprint rights: Syndications Today