Weekly Bombay Stock Exchange: Global cues, macro data weigh on equities

Mumbai - Weak rupee also dampens investor sentiment

Negative global cues, profit booking and mixed macro-economic data saw two key Indian equity market indices end in the negative during the week ended Friday.
The markets, which started the week on a flat-to-negative note, resumed the uptrend after the accommodative monetary policy stance of the Reserve Bank of India. Investors' risk-taking appetite also climbed on expectations of the onset of southwest monsoons.
However, later in the week, gains were capped as investors' sentiments turned cautious with global markets turning weak ahead of the Federal Open Market Committee's rate decisions and a weak rupee, analysts said.
Consequently, the 51-scrip Nifty of the National Stock Exchange was down 50.75 points or 0.62 per cent to 8,170.05 points, while the 30-scrip sensitive index of the BSE lost 207.28 points or 0.77 per cent to 26,635.75 points.
"Over the last one week, markets have been languidly moving up, devoid of any sharp movements. While the week was filled with news flows, market participants decided to take most developments in their stride," said Brijesh Ved, senior portfolio manager at BNP Paribas.
"Markets were cheered by the statements of RBI Governor Raghuram Rajan when he said that the central bank will monitor macroeconomic and financial developments for scope for reduction in the repo rate," Ved told IANS.
"The RBI retained its March 2017 inflation projection of seven per cent while at the same time pointing out some upside risks to inflation such as firming international commodity prices and the implementation of the sevent Central Pay Commission awards," he added.
"A curb in the global growth outlook by the World Bank and consensus that retail inflation in May can increase to 5.6 per cent, versus 5.39 per cent in April, compelled investors to stay cautious on Dalal Street," said Vinod Nair, head of research at the brokerage.
Among the sector-specific indices of the BSE, the realty index declined 1.03 per cent, auto lost 0.95 per cent, consumer durables were down 0.71 per cent, and oil and gas fell 0.69 per cent. On the other hand, power was up 0.60 per cent, utilities were up 0.27 per cent and basic materials rose 0.09 per cent.
Among the individual stocks that go into the Sensex basket, State Bank of India was the top gainer with 4.94 per cent, followed by Bhel with 4.83 per cent, ICICI Bank with 3.69 per cent, Oil and Natural Gas Corp with 2.90 per cent and Cipla with 2.40 per cent.
The losers were led by Infosys, down 6.76 per cent, followed by Asian Paints with 3.31 per cent, Dr Reddy's Labs with three per cent, Tata Consultancy with 2.66 per cent and Maruti Suzuki with 2.43 per cent.
The week also saw appreciable inflows of foreign funds.
As per official data, foreign funds purchased net stocks worth Rs1,492.71 crore during the week under review, while domestic institutional investors sold scrips worth Rs925.42 crore.
Figures from National Securities Depository showed that foreign portfolio investors were net buyers of equities worth Rs2,501.11, or $373.11 million from June 6-10