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Weekly Wrap: Investors Lose Rs 1.5-Lakh Crore As Selloff Continues

Indian equity investors lost Rs 1.52 lakh crore of wealth this week, according to data available with the Bombay Stock Exchange.

A trader reacts as he works at his computer screens. (Photographer: Hannelore Foerster/Bloomberg)
A trader reacts as he works at his computer screens. (Photographer: Hannelore Foerster/Bloomberg)

Indian equity investors lost around Rs 1.52 lakh crore of wealth this week, according to data available with Bombay Stock Exchange.

That came after Indian equity benchmarks extended declines for the third consecutive week, their longest weekly losing streak since January, as investors analysed earnings over the budget announcements.

The S&P BSE Sensex and the NSE Nifty 50 fell 1.2 percent each this week to 37,882.79 and 11,284.30, respectively.

Weekly Wrap: Investors Lose Rs 1.5-Lakh Crore  As Selloff Continues

Investors are currently assessing corporate earnings, which are struggling to recover from the budget announcements, according to Joindre Capital Services’ Research Head Avinash Gorakshakar.

“The budget is now something the investors aren’t weighing much because the street doesn’t expect any major changes in reforms immediately,” Gorakshakar told BloombergQuint over the phone. “The earnings recovery may take longer if the results are same in September quarter.”

Besides, the markets were volatile since it was F&O expiry week, he said.

Gorakshakar doesn’t see changes in market sentiment immediately. “There could be very less investments after the markets declined for over a week,” he said. “However, market conditions will only improve when foreign investors turn buyers and if corporate earnings turn positive.”

The Nifty has taken support levels just below its 200-day moving average, Independent Market Analyst Rahul Randeria said.

“We believe that Nifty could bounce back from the current levels as some stocks are attractive at present,” told BloombergQuint in an interview. “We expect the Nifty to reclaim 11,480 level in the next couple of days.”

Eight out of the 11 sectoral gauges compiled by National Stock Exchange ended lower, led by the NSE Nifty PSU Bank Index’s 5.1 percent fall. On the flipside, the NSE Nifty Media Index was the top sectoral gainer, up 5.6 percent.

How Broader Markets Performed

The broader market represented by the NSE Nifty 500 Index ended 1.2 percent lower, led by declines in Cox & Kings Ltd. and Triveni Tribune Ltd.

How Currency Markets Performed

The Indian rupee ended lower for the third consecutive week against the U.S. dollar. The home currency depreciated as much as 0.14 percent to end the week at 68.9 against the greenback.

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Key Earnings Announced This Week

Nifty Earnings To Watch Next Week

Key Events/Data To Watch Next Week

  • July 31: India June fiscal deficit data.
  • July 31: India June industrial output data.
  • Aug 1: July auto sales numbers.
  • Aug 1: India manufacturing PMI data for July.