Sensex, Nifty slips sharply, IT & Pharma index outperform

Auto stocks were in focus as a relief to the Auto sector came after minister for road transport and highways announced there will be no deadline for transition to electric vehicles, or a ban on petrol and diesel-run vehicles.

Aug 24, 2019 03:08 IST India Infoline News Service

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The Indian equity market plunged sharply for second consecutive week, losing 1.6% as bears tightened their grip over the street. Markets came tumbling down after Chief Economic Adviser seemed to indirectly rule out the possibility of a major stimulus package when he said: “have to be careful on the issue of a fiscal stimulus". He emphasised that the government is not expected to intervene every time when some sectors go through sunset phases.

The Rupee crashed to over 8-months low during the week and was very close to the 72 per dollar mark. This move aided the export-oriented sectors like IT and pharma to outperform amid fierce selling pressure witnessed across the board.

For the week, PSU Bank and Realty index both lost 7.7%, Metal index plunged by 5%, Private Bank index was down by 4.5%, Nifty Bank index fell by 4.5%, Midcap 100 index fell by 3%, Infra index declined by 2.5%, Energy index declined by 2.1%, FMCG index was down by 2.2% and Auto index edged lower by 0.3%. 

Auto stocks were in focus as a relief to the Auto sector came after minister for road transport and highways announced there will be no deadline for transition to electric vehicles, or a ban on petrol and diesel-run vehicles. The government has decided to review the proposed increase in the registration fee of petrol and diesel vehicles.

Meanwhile, Sebi announced a number of steps to address FPI concerns. The market regulator reduced the number of overseas investor categories to two from three. Tweak in buyback norms and tightening of rules for credit rating agencies among others were taken at Sebi’s board meeting during the week.

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