The sentiment was hit after the GDP expanded at its slowest in over six years. GDP was lower-than-expected at 5% yoy in the April-June quarter and it was driven by weak demand. Meanwhile, the government's fiscal deficit touched Rs5.47 lakh cr in the June quarter, which is 77.8% of the budget estimate for 2019-20.
August turned out to be another gloomy month for major carmakers in the country as there seems to be no respite in terms of demand pick up. Auto heavyweights like Maruti, Tata Motors and Mahindra & Mahindra witnessed their sales going down during the month. The total domestic passenger vehicle sales of Maruti fell 36%, domestic passenger vehicle sales of Tata Motors declined a massive 58%, while Mahindra & Mahindra's total passenger vehicle sales touched a total of 13,507 units in August, which was 32% lower compared to August 2018 figures.
For the week, Metals index shot up by 3%, Energy index was up by 1.5%, Nifty Auto index gained by 1.3% and Infra index rose by 0.8%.
On the other hand, the Realty index slipped by 5%, PSU Bank index was down by 4% and FMCG index slipped by 2.1%. The Nifty Metals index showed signs of recovery during the week. The index has broken out from a two-week consolidation base indicating the recovery is likely to get extended in the coming week.