MF Weekly Update: The Market Posted Losses During the Week

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Major Equity Indices Performance

Sensex traded at a weekly loss of 0.78%, BSE 200 and BSE 100 down by 0.78% and 0.75% respectively. S&P BSE Midcap and S&P BSE Small cap lost maximum; fell 0.94% and 1.34%. Continuous falling rupee raised fear of foreign fund outflow. A week ago, foreign investors have pulled out Rs. 5,600 crore due to falling currency value and continuously increasing crude oil prices. US President Trump again initiated a new plan to impose tariff on additional $267 billion of Chinese import. Ongoing trade battle had weakened rupee to fresh record low.

On Wednesday, market logged profits due to heavy sell-offs in FMCG, metal and capital goods sector. Moreover, recovered rupee also extended market gains. On the last trading session, market registered profits because of eased Consumer Price Index-based inflation and Wholesale Price Index based inflation to 3.69% and 4.53% in August 2018 as against 4.17% and 5.09% in July 2018 mainly due to falling prices of food articles and vegetables. However, Industrial Production witnessed 6.6% growth in July as against 6.9% growth in the month of June 2018. The growth is mainly the result of solid performance by manufacturing sector (7%), consumer durables (14.4%) and capital goods (3%).

Sectoral Indices Performance

Gaining Sectors

Three sectors have traded in gains; S&P BSE Power gained 0.47% followed by S&P BSE Metal up by 0.32%. However, S&P BSE capital goods was slightly up by 0.07%.

Losing Sectors

Out of the 11, 8 sectoral indices have traded in the loss. Among all, BSE Auto has lost the maximum, going down by 1.85% followed by S&O BSE Energy which was down by 1.42%. According to the Indian Automobile Manufacturers data, in August 2018, the passenger car sales volume witnessed 1% fall to 196,847 units as against August 2017. S&P BSE Bankex fell 1.25%, FMCG fell 0.97%, Oil & gas fell 0.65%, consumer durables fell 0.63%, and IT sector down by 0.22%.

Top Performers & Losers

Conclusion

Although as the market trade in losses the investors' sentiments are highly affected, still, they must remember that this is the zone where nothing is certain, and the short-term fluctuations don’t determine the final outcomes. To fight this volatility like a pro, one can prefer investing in mutual funds. Here, with small and disciplined SIP investments, one can sail through the market volatility and also gain attractive returns. The benefits of compounding and rupee cost averaging offer investors high returns in the long run. To find out more about it, connect with our experts.