The week commenced strong, with investors taking fresh positions at the beginning of May contract on heavy sell-off in April series and the passing of Finance Bill, 2015.
However, the momentum was short-lived as sentiment was overlapped by negativity on sustained selling by foreign portfolio investors (FPIs) on worries over Minimum Alternate Tax (MAT), weak corporate earnings, delay over passage of key reforms, including GST, and the Land Bill. Even Bollywood superstar Salman Khan’s conviction swayed entertainment-related stocks.
Selling pressure also built up due to sudden spurts in brent crude price, the rupee breaching the $64 mark to 20-month low and the global sell-off after US Federal Reserve chief Janet Yellen’s comment on equity valuations leading to global bond routs.
Investor worries abated after the government set up a high-level committee to look into the MAT issue, which turned the table in favour of bulls.
The BSE 30-share indicator resumed firm and hovered in a wide range of 27,603.71 and 26,423.99, before recovering to end with a small weekly rise of 94.08 points, or 0.35 per cent, to end at 27,105.39. In the last straight three weeks, it had crashed 1,868.07 points, or 6.47 per cent.
Similarly, the broader 50-issue CNX Nifty opened higher at 8,230.05 and moved in a breadth of 8,355.65 and 7,997.15 before settling the week better at 8,191.50, a modest gain of 10.00 points, or 0.12 per cent.
PTI