FII selling, increasing bond rates, and investor concerns about possibly aggressive central bank rate rises as inflation climb to new highs in multiple nations kept the Indian market volatile, losing about 2% in a holiday-shortened week.
Foreign institutional investors sold Rs 6,334.63 crore worth of stocks, while local institutional investors purchased Rs 1,794.36 crore worth of stocks.
In the week ending April 13, the Sensex slid 1,108.25 points, or 1.86 percent, to close at 58,338.93, while the Nifty50 fell 308.65 points, or 1.73 percent, to conclude at 17,475.7.
The index cooled throughout the shortened week as market players sought to reduce their holdings ahead of the holiday weekend. With a weekly loss of 1.74 percent, the index finished below the 17,500 barriers.
The BSE information technology and telecom indexes both sank 3%, while the metal and capital goods indices both declined 2%. The BSE Power index, on the other hand, increased by 5.2 percent. The BSE midcap index was down 2.6 percent, smallcaps was down 0.8 percent, and large-cap was down 1.3 percent.
A substantial fall below 17,450, according to Research Analysts, might lead to a retest of the 16,900 zones. Traders should have a slightly pessimistic view for the coming week. The negative picture can be reversed if the price rises over the immediate resistance level of 17,850.
Nearly 35 smallcaps stocks rose between 10-37 percent in the last week, including Shiva Cement, Sandur Manganese and Iron Ores, Gujarat Ambuja Exports, Siyaram Silk Mills, Cantabil Retail India, Godfrey Phillips India, Kitex Garments, The Dharamsi Morarji Chemical Company, and Garden Reach Shipbuilders & Engineers.
Experts feel that if there are no unforeseen events on the global front in the next few days, any positive indication would be the icing on the cake. On the upside, 17,700 and 17,850 are the levels to keep an eye on. If the Nifty is to recover any power, it must break through these hurdles with force.