After numerous U.S. banks crashed and FII unloading resulted, the market saw strong selling for the second consecutive week ending March 17 amid negative global cues. The second part did experience some recovery, though, as a result of financial aid provided to U.S. banks, a decline in the price of crude oil, and predictions that the U.S. Fed might not pursue an aggressive monetary policy going forward.
The 30-pack Sensex dropped 1,145.23 points (1.93%) throughout the course of the week ending March 17 to finish at 57,989.90. Nifty50 lost 312.9 points, or 1.79%, to close at 17,100. BSE small-, mid-, and large-capitalization indices all experienced declines of 2.8%, 2%, and 1.6%, respectively, among the broader indices.
This week, domestic institutional investors (DIIs) bought shares worth Rs 9,233.05 crore, while foreign institutional investors (FIIs) sold shares worth Rs 7,953.66 crore. But, so far this month, FII’s and DII’s have purchased stocks worth Rs 6,408.19 crore and Rs 16,162.40 crore, respectively.
“With weaker U.S. retail sales data and lower U.S. PPI inflation raised hopes of a Fed rate hike next week of only 25 basis points, we anticipate a brief drop in the market. Yet, because of the still-weak market structure, traders should exercise caution at higher levels. Following a 25bps reduction in CRR by China’scentral bank to boost the economy, metal stocks may gain some traction” said, Siddhartha Khemka, Head-Retail Research, Motilal Oswal Financial Services.