Ahead of Union Budget 201, the market witnessed continuous selling throughout the truncated week ended January 29 amid volatility due to monthly expiry, FII selling, and weak global markets. Meanwhile, market participants also booked profit ahead of the Budget to be presented later in the day.
Last week, BSE Sensex slipped 2,592.77 points or 5.3 percent to end at 46,285.77 and while the Nifty50 fell 737.3 points or 5 percent to finish at 13,634.60 levels.
The BSE Large-cap Index slipped 5 percent dragged by the Piramal Enterprises, Maruti Suzuki India, Tata Motors, and Dr. Reddy’s Laboratories, while Grasim Industries, Axis Bank, Cipla, and Sun Pharmaceutical Industries ended with marginal gains.
BSE Mid-cap Index declined 3.6 percent with Info Edge India, Kansai Nerolac Paints, Aditya Birla Fashion, Vodafone Idea, Mahindra & Mahindra Financial Services shed 10-18 percent, while gainers were Shriram Transport Finance Corporation, Cummins India, TVS Motor Company, Colgate Palmolive (India) and Supreme Industries.
BSE Small-cap index shed 2.3 percent dragged Chennai Petroleum Corporation, Dewan Housing Finance Corporation, Vakrangee, Apollo Tyres, Astec Lifesciences, DCB Bank, Ramkrishna Forgings, and Suven Life Sciences. However, gainers were IIFL Finance, Majesco, Cosmo Films, Solara Active Pharma, and Salasar Techno Engineering.
On the BSE Sensex, Tata Consultancy Services, Infosys and Housing Development Finance Corporation were the top losers in terms of market value, while Axis Bank, Sun Pharmaceutical Industries, and ICICI Bank added most of their market value.
On the sectoral front, Nifty IT, Auto and Energy lost more than 6 percent each and Infra sector lost 5 percent.
In the last week, foreign institutional investors (FIIs) sold equities worth Rs 12,096.69 crore, while domestic institutional investors (DIIs) bought equities worth Rs 3,788.98 crore. However, in the month of January FII bought equities worth Rs 8,980.81 crore and DII sold equities worth Rs 11,970.54 crore.
In the last week, the Indian rupee ended flat at 72.95 per dollar on January 29, against its January 22 closing of 72.97 per dollar.
Five days of the selloff on D-Street pushed Sensex and Nifty50 below crucial support levels. The average market capitalization of the BSE-listed companies fell by about Rs 10 lakh cr in just five sessions. The market capitalization of the BSE-listed companies fell from Rs 197.70 lakh cr to Rs 188.13 lakh cr as of January 28, 2021.
Wild gyrations cannot be ruled out on Budget Day; hence, traders prefer to trade light. The next big support for the index is placed around 50-Days EMA placed at 13700 levels. A break below this level could fuel further selling pressure.