A trader reacts as he looks at financial data on computer screens on the trading floor at ETX Capital, a broker of contracts-for-difference in London, U.K. (Photographer: Chris Ratcliffe/Bloomberg)

Weekly Wrap: Tata Motors’ Biggest Quarterly Loss Narrows Sensex, Nifty Gains

India’s equity benchmarks wiped off most of their weekly gains with just Friday’s last 30-minute selloff.

The S&P BSE Sensex, which rallied nearly 1.4 percent between Monday and Thursday, ended the week 0.2 percent higher. The NSE Nifty 50 Index, too, pared its weekly gains to end 0.5 percent higher.

Weekly Wrap: Tata Motors’ Biggest Quarterly Loss Narrows Sensex, Nifty Gains

Indian stocks were pulled down on Friday by Tata Motors Ltd. after the automaker reported the biggest quarterly loss in India’s corporate history. Shares of the owner of Jaguar Land Rover tumbled 17 percent—the worst single-day drop on the National Stock Exchange.

Weekly Wrap: Tata Motors’ Biggest Quarterly Loss Narrows Sensex, Nifty Gains

The rally during the last few days was “misleading”, according to G Chokkalingam, founder and managing director of Equinomics Research & Advisory’s, said. “That rally was led by hardly 12-15 stocks. Majority of the fund managers and investors are under stress.” The market is not helping investors to recover the destruction caused earlier, he told BloombergQuint over the phone. Another possible rate cut by the Reserve Bank of India and the general election may be another trigger, he said.

Hadrien Mendonca, senior technical analyst at IIFL, said the trade formed a “Doji” pattern—small trading range with an opening and closing price that are virtually equal—on Thursday. “We had witnessed an extension of a decline after we opened lower on Friday. This means, further profit-booking cannot be ruled out,” Mendonca told BloombergQuint in an interaction.

He said the Nifty is seen attempting to fill the gap formed on Feb. 6. “This means the 50-share index could come down to 10,950 levels—the first support line of the Nifty. If that is broken, we can expect a downside of 10,800-10,850.”

We could see the resumption of the uptrend if the Nifty continues to hold 11,000-mark.
Hadrien Mendonca, Senior Technical Analyst At IIFL

The NSE Nifty 500 Index dropped 0.21 percent, led by the slump in Reliance Group stocks. Only Reliance Nippon Asset Management among the Anil Ambani-led group firms was among the top sectoral gainers in the 500-shares gauge.

Six of the 11 secotral gauge advanced this week, led by the NSE Nifty Media’s Index’s 5.6 percent rally. On the flipside, the NSE Nifty Metal Index was the top sectoral loser, down 2.7 percent.

The Indian rupee ended marginally lower against the U.S. dollar. The home currency depreciated 0.08 percent this week against the greenback.

Big Talking Points This Week

  • India’s fiscal deficit narrows in December.
  • RBI Policy: MPC cuts benchmark rate, RBI governor emphasises growth.
  • Moody’s downgrades Bharti Airtel’s debt to below investment grade.
  • Jaguar woes lead to Tata Motors loss for the history books.
  • From the RBI’s balancesheet to IL&FS, YV Reddy weighs in
  • Anil Ambani Group loses a third of its market cap in five days.

Also these

  • Trump says he won’t meet Xi Jinping before tariff deadline.
  • Modi hits back at Congress over Rafale in Parliament.
  • Twitter reports tepid sales forecast and lackluster user growth.

Meanwhile, don’t forget to catch all the BQ Blue Exclusives here

Data To Watch Next Week

  • Feb. 12: CPI Inflation for January YoY.
  • Feb. 12: IIP data for December YoY.
  • Feb. 14: WPI Inflation for January YoY.
  • Feb. 15: Trada export-import data for January.