Witnessing a selloff in tandem with global equities, the Indian stock markets ended the week in the red as trade tensions between the US and China escalated following the arrest of Huawei CFO Meng Wanzhou for allegedly violating the US trade sanctions against Iran.
The week was also witness to the crucial RBI monetary policy meeting, where the central bank maintained status quo on key interest rates and also held its stance of “calibrated tightening”.
It, however, announced a 25bps (0.25%) reduction in SLR every quarter (w.e.f. Jan 2019) until it reaches 18% from 19.5% currently. The move is in a bid to increase the lending power of Indian banks.
The volatility in the markets is set to persist as all eyes now shift to the outcome of the ongoing elections across five Indian states. These states, which went to polls over the course of the past one month, will announce the results on Tuesday, December 11. This would be the last major political event of 2018 ahead of the general elections next year.
Sector-wise, IT was the only index that closed the week in the green. The index gained 0.17% to December 07.
On the other hand, Nifty Pharma was the worst-performing index, closing 6.39% lower. Auto was down 4.32%, PSU Bank corrected 3.10%, while Metal declined 2.93%. For the week, Nifty lost 1.68%, while Bank Nifty dipped 1%.