The Indian equity markets ended the truncated week with losses while extending its losing streak to the second consecutive week. Markets fell sharply in the initial part of the week after the rupee weakened severely and hit a fresh all-time low of 72.9 against the US dollar.
Currency took a U-turn after media reports stated that Prime Minister Narendra Modi is likely to hold an economic review meeting over the weekend to consider fiscal or monetary measures.
In terms of macroeconomic data, industrial production
growth in the month of July fell to 6.6% as compared to a revised 6.9% in June 2018. On the other hand, retail inflation fell to 3.69% in August, the lowest in ten months compared to 4.17% in July.
Meanwhile, the European Central Bank (ECB) kept its policy unchanged, announcing only a slight change in its guidance. Markets will pay attention to ECB President Mario Draghi's comments and whether he maintains the ECB's stance that growth risks are broadly balanced. On the other hand, Turkey's central bank raised its benchmark rate in a move to boost the lira.
For the week, the auto index declined 2%, FMCG was down 1.1%, Bank Nifty was down 1.1%, and the energy index was down 0.9%.
On the other hand, the metal index gained 0.3%, while the infra index was up 0.2%.