Nifty falls for 3rd week in a row amid weak advance decline ratio

The advance-decline ratio once again turned in favour of the bears which indicates that weakness is likely.

Jun 23, 2019 04:06 IST India Infoline News Service

Another high volatile week ended with marginal losses as Nifty extended its losing streak to third consecutive week. Weakness was seen despite equity markets in the US hitting fresh lifetime highs. The S&P hit fresh highs amid expectations that the Federal Reserve would cut interest rates as soon as next month to keep the US-China trade war from stalling economic growth.

The advance-decline ratio once again turned in favour of the bears which indicates that weakness is likely.

Sentiment dampened after monsoon progressed slower than usual. Rains have been 44% lower-than-average so far in June, raising concerns that parts of the country could face drought. In addition, global growth slowdown and rising crude oil prices amid geopolitical tensions continued to keep the trader and investor fraternity on the edge.

Meanwhile, the beaten down space like ADAG stocks, Jet Airways and DHFL hogged the limelight on account of wild gyrations throughout the week.

For the week, Pharma index declined by 2.2%, FMCG index ended lower by 2%, Media index declined by 2%, Auto index was down by 2%, Energy index slipped 1.2%, Midcap 100 index slipped by 0.8%, Metals and IT index were down by half a percent each.

On the other hand, Realty index rose higher by a percent while the PSU Bank index too gained by 0.8% and Bank Nifty ended flat.

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