Market Research Report: Indian Equity Market Continued its Losing Streak by Closing in Red

Major Equity Indices Performance

S&P BSE Midcap and S&P BSE Small Cap underperformed Sensex, closed at a weekly loss of 5.34% and 8.45%, respectively. Sensex fell 1.67% while S&P BSE 100 and S&P BSE 200 plunged 2.83% and 2.33%, respectively. Initially, heavy fall in DHFL kept participants vary over possible liquidity fears. Besides this, surge in the crude oil prices and depreciation in rupee added to the woes. On Monday, Sensex fell 536.58 points at a closing value of 36,305.02. Later, RBI and finance minister immediately provided their statements by reporting that they will monitor the situation and would take required steps to ensure adequate liquidity, and this supported investors’ sentiments. Gains were also driven by buying in healthcare, bankex, auto, consumer durables, and IT sectors. On Tuesday, Sensex ended higher by 0.96%, S&P BSE Midcap grew 0.36%, whereas S&P BSE Smallcap dragged 0.74%. On the third consecutive day, the market traded down because investors’ sentiments were affected by the US Fed Reserve’s policy meeting and expiry of September’s derivative contracts. Later, in order to take action on persistent fall in rupee, the government has raised import duties on various goods dampened sentiments. Financial stocks also witnessed sell-off which pulled the market lower. On the last day, heavy downfall in an IT stock by more than 70% dragged the market down. During the week, Infibeam Avenues remained the top loser on S&P BSE Small cap, down by 67.58%. Investors also remained cautious ahead of RBI’s policy meeting next week and selling of October futures & options series.

Sectoral Indices Performance

Gaining Sectors

Sectoral indices traded on a weak note. S&P BSE Energy stood as the top gainer, up by 1.22% followed by S&P BSE IT which traded at a weekly profit of 1.03%.

Losing Sectors

Except Energy and IT, all the other sectors were traded in loss. S&P BSE Auto was the top loser, down by 7.73%. It is mainly due to escalating trade tension between the US and China and the rising crude oil prices. S&P BSE capital goods and S&P BSE metal traded down by 5.26% and 4.85%, respectively. S&P BSE consumer durable and S&P BSE Power fell 4.75% and 4.44%. Other sectors including healthcare, FMCG, bankex, and oil & gas saw selling pressure, down by 3.61%, 2.57%, 2.47%, and 1.28%, respectively.

Top Performers & Losers

All in all, it was too a week with a lot of turbulence and correction in the market. Investors often panic in such a state and they do away with their investments. This is the worst you can do with your money. When you invest in mutual funds via SIP, you need not to time the market. Here, when the market goes down, you buy more number of units at lower prices, and this way you earn well at the end due to compounding benefit. For more guidance on mutual fund investment, you can shoot your queries to our experts at https://goo.gl/5Af1xU