The Indian stock market ended its four-week winning streak after the hawkish U.S. Federal Reserve forecast on the interest rate drop and FIIs’ selling. The key benchmark indices erased their four-week gains in the week ended.
The Nifty 50 index saw a weekly decline of 1,181 points, falling from 24,768 to 23,587. Last week, the BSE Sensex fell more than 4,000 points, from 82,133 to 78,041. Similarly, the Nifty Bank index had a weekly loss of 2,824 points last week, plunging from 53,583 to 50,759.
The Nifty 50 index may have raised the spirits of Indian stock market bears during this drop by breaking below its 200-DEMA support and closing at 23,800. The Nifty 50 index is at its most recent swing low of 23,250 in this bear market, and there are a lot of wagers on whether this support will hold firm or if the 50-stock index will drop to a new bottom.
The aggressive US Fed perspective on interest rate reduction gave bears the chance to paint the Indian stock market crimson before Christmas, according to stock market specialists. The bond and currency markets saw buying as a result of the strengthening US dollar rates. They claimed that another factor preventing the DII feelings for bottom fishing from being fuelled is the sale of FIIs.
Notably, investor wealth lost ₹18.5 lakh crore as a result of this week’s market crash.
The week finished with losses for 48 of the 50 Nifty equities. The index had only two gains, Dr. Reddy’s and Cipla, while the worst performers for the week were Shriram Finance (down 9%), Tata Motors (down 8.4%), and JSW Steel (down 8.25%).
Indian IT equities were unable to maintain their early gains on Friday, despite an upward adjustment in sales growth estimate from US-based information technology major Accenture Plc. The Nifty IT index lost almost 5% for the week after plunging 2.6% on Friday. The sub-index’s poorest performances were industry heavyweights including Tech Mahindra, LTI Mindtrees, L&T Technology Services, and TCS, which had losses ranging from 2.2% to 6.3%.