Economy

Weak trade continues; Sensex below 33k-mark on CAD, Fed hike worries

Weak trade continues; Sensex below 33k-mark on CAD, Fed hike worries

Markets benefited from value buying in beaten-down stocks and a mixed trend overseas, as investors focused on new Federal Reserve Chairman Jerome Powell's first policy meeting starting later in the day amid trade war concerns, broker said.

"When you look at the data, it's relentless selling by foreign investors".

For the third straight week stocks ended in the red with the flagship Sensex recording a weekly fall of 131.14 points, or 0.39 per cent, and the NSE Nifty losing 31.70 points, or 0.30 per cent.

The benchmark indices were trading flat on Tuesday tracking negative trend in Asian markets as investors dumped high-flying USA technology shares on fears of stiffer regulation as Facebook came under fire following reports it allowed improper access to user data. Metal, media, IT and auto stocks were early losers today. The benchmark finally settled at 32,996.76, showing a gain of 73.64 points, or 0.22 per cent.

The broader NSE Nifty dipped below the 10,200-mark to hit a low of 10,180.25 before ending at 10,195.15, down by 165 points, or 1.59 per cent. Investor wealth saw an erosion of Rs 1.86 lakh crore amid a massive sell-off in the broader market.

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The broader midcap and smallcap company shares outperformed the key indices.

Foreign portfolio investors had sold shares worth Rs 705.40 crore on net basis on Thursday.

However, side-counters have shown impressive gains during the week with the S&P BSE Mid-Cap index advancing 1.45 per cent and the BSE Small-Cap index gaining 1.56 per cent.

Sectoral indices led by metal, healthcare, realty, consumer durable and banking stocks were trading in the negative terrain, falling by up to 1.38 percent. Other gainers were Sun Pharma, Dr Reddy's, Adani Ports, HDFC Ltd, L&T, Tata Motors, Bajaj Auto, Asian Paints, SBI, Power Grid, HUL, Axis Bank, Maruti Suzuki and Hero MotoCorp, rising up to 2.20%. However, Telecom major Bharti Airtel surged 4.04 per cent.