Nifty, Sensex Register Biggest Weekly Loss in 2 Years – Weekly Closing Report
Moneylife Digital Team 18 June 2022
We had mentioned in previous week’s closing report that Nifty, Sensex were under pressure on inflation and rate hikes and all eyes were on US inflation data.
 
The major indices opened lower this week and closed with loss.
 
 
On Monday, the indices opened gap down and ended deeply in red. On the National Stock Exchange (NSE), only 247 stocks advanced, 1,876 declined and 43 remained unchanged with advance decline ratio of 0.13, indicating major weakness in broader markets. The reason was another high rate of US inflation—it was 8.6% for May.
 
On NSE, just 13 stocks advanced to close at a new 52-week high whereas 171 stocks sunk to close at their new 52-week lows. All sectoral indices ended in red, Nifty IT and Nifty Media were the biggest losers whereas Nifty FMCG and Nifty Healthcare Index declined the least. BSE Midcap and BSE Small Cap fell in line with broader markets, falling 2.73% and 3.15% respectively.
 
Volatility index, India VIX surged 13% to close above the level of 22. Rupee closed at record low of 78.04 per US dollar after opening at record low of 78.11. The 10-year government bond yield closed at 3-year high of 7.60%.
 
Indian Premier League (IPL) TV rights for the Indian subcontinent were sold to Disney Star for Rs23,575 crore, while Viacom18 got the digital rights for the Indian subcontinent for Rs20,500 crore. Viacom18 also  won digital special bouquet for India by paying Rs3,258 crore. Further Viacom18, along with Times Internet, won both TV and digital rights of IPL cricket matches for rest of the world.
 
Paritosh Tripathi has been named the new MD and CEO of SBI General Insurance.
 
On Tuesday, the indices opened gap down and ended with a loss. On the NSE, 914 stocks advanced, 1,162 declined, and 62 remained unchanged with an advance-decline ratio of 0.79.
 
On NSE, only 9 stocks advanced to close at a new 52-week high, whereas a whopping 139 stocks sunk to close at their new 52-week lows. In sectoral indices, Nifty Realty and Nifty Metal were the biggest gainers, whereas Nifty Oil & Gas and Nifty Auto were the biggest losers. The broader market indices closed in line with their larger peers, BSE Midcap and BSE Small cap closed 0.16% and 0.40% down, respectively.
 
In fund flow activity, foreign institutional investors (FIIs) sold Rs4,502.2 crore and domestic institutional investors (DIIs) bought funds worth Rs3,807.6 crore. 
 
The Competition Commission of India (CCI) has approved the acquisition of Air Asia India by Air India.
 
State Bank of India (SBI) raised its one-year marginal cost of funds-based lending rate (MCLR)-based lending rate to 7.4% from 7.2%. 
 
The director general of civil aviation (DGCA) has levied a penalty of Rs10 lakh on Air India for the absence of a policy on denied boarding.
 
On Wednesday, the indices opened flat and ended with loss. On the NSE, 1,094 stocks advanced, 953 declined, and 94 remained unchanged with advance decline ratio of 1.15.
 
On NSE, only 13 stocks advanced and closed at a new 52-week high whereas 80 stocks sunk to close at their new 52-week lows. In sectorial indices, Nifty Auto and Nifty Financial Services were the biggest gainers whereas Nifty Oil& Gas and Nifty Metal were the biggest losers. The broader market indices BSE Midcap and BSE Small cap bucked the trend of larger peers and gained 0.52% and 0.49% respectively. Rupee closed at 78.07 to the dollar compared to 77.99 on Tuesday.
 
The Union Cabinet has approved the auction of 5G spectrum which is set to begin on 26th July. The airwaves will be auctioned for a period of 20 years. The last date to apply is 12th July and the department of telecom (DoT) will declare the final list of bidders on 20 July 2022. There is no mandatory requirement for making upfront payment for 5G spectrum and spectrum dues can be paid in 20 equal installments.
 
India’s May exports were up by 20.6% to US$38.94 billion whereas imports jumped 62.8% to $63.32 billion on year-on-year (y-o-y) basis.
 
On Thursday, the indices opened gap up after the US markets ended higher but closed with huge loss. On the NSE, 288 stocks advanced, 1,814 declined, and 48 remained unchanged with advance decline ratio of 0.16 indicating major correction in the broader markets.
 
On NSE, just 14 stocks advanced and closed at a new 52-week high whereas a whopping 267 stocks sunk to close at their new 52-week lows. All sectorial indices closed in red with Nifty Metal and Nifty Media being the biggest losers whereas Nifty FMCG and Nifty Pharma were least affected. The broader market indices underperformed their larger peers with BSE Midcap and BSE Small cap closing 2.34% and 2.87% down respectively. Rupee closed at fresh record low of 78.08/$.
 
According to TRAI’s April subscriber data, Jio added 16.8 lakh subscribers, Airtel added 8.16 lakh whereas Voda Idea, BSNL and MTNL lost 15.6 lakh, 3.69 lakh and 3,147 subscribers respectively. 
 
LIC has increased its stake in Dr Reddy’s from 3.63% to 5.65%. 
 
The 47th GST Council meeting is scheduled to be held on 28th and 29th June in Srinagar.
 
On Friday, the indices opened gap down and ended with loss. On the NSE, 676 stocks advanced, 1,406 declined, and 52 remained unchanged with advance decline ratio of 0.48.
 
On NSE, only four stocks advanced and closed at a new 52-week high whereas a whopping 395 stocks sunk to close at their new 52-week lows. In sectorial indices, Nifty Private Bank and Nifty Bank were the biggest gainers whereas Nifty Oil& Gas and Nifty Pharma were the biggest losers. The broader market indices underperformed their larger peers with BSE Midcap and BSE Small cap closing 0.69% and 0.88% down respectively.
 
Bank of Japan, in its monetary policy, kept the rate unchanged, maintained policy balance rate at -0.1% and the 10-year Japan Government Bond yield target at 0%. 
Swiss National Bank has taken a 50-bps hike for the first time since 2007. 
 
RBI has lifted restriction imposed on Mastercard Asia; it will now be able to onboard new customers.
 
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