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WEEKLY REPORT
Indian markets snapped a three-week gaining streak, posting the worst weekly fall in nearly six months amid persistent FII selling, fresh US tariffs on pharmaceuticals, higher visa fees, a falling rupee, and a weakening dollar. However, continued DII support and GST implementation provided some support.
For the week, Nifty50 shed 672.35 points or 2.65 percent to finish at 24,654.70, while the BSE Sensex index fell 2199.77 points or 2.66 percent to end at 80,426.46.
During the week, Tata Consultancy Services lost the most in terms of market value, followed by Reliance Industries, Infosys, and HDFC Bank. On the other hand, Maruti Suzuki India, Larsen & Toubro, and Axis Bank added the most to their market capitalization.
All the sectoral indices gave a negative return during the week, with the Nifty IT index plunging 8 percent, the Nifty Realty index shedding 6 percent, the Nifty Pharma index falling 5.2 percent, the Nifty Consumer Durables index slipping 4.6 percent, Nifty Defence index declining 4.4 percent.
All the broader market indices ended with gains; the BSE Large-cap index rose 1.4 percent, the BSE Mid-cap index went up 2 percent, and the Small-cap indices also gained 2.5 percent this week.
Foreign Institutional Investors (FIIs) remained net sellers throughout the week, extending their selling for the 13th consecutive week, as they offloaded equities worth Rs 19,570.03 crore, while Domestic Institutional Investors (DIIs) continued their buying in 24nd week, as they purchased equities worth Rs 17,411.40 crore.
Indian rupee touched a fresh record low of 88.80 to end near the low at 88.71 per dollar on September 26 against the September 19 closing of 88.10, down 61 paise in this week. The Indian rupee traded in the range of 88.80-88.12 during the week.
ECONOMY
Trump’s H-1B visa fee hike rattles India’s software exports
The MSCI India index fell for five consecutive sessions after U.S. President Trump introduced a higher fee overhaul on H-1B visas. This move is seen as a threat to India’s $280 billion IT services sector, which relies heavily on sending professionals to the U.S. The sell-off was led by tech and pharmaceutical stocks, and concerns also mounted over remittances and rupee depreciation.
China’s central bank to step up policy support for growth
China’s central bank said it will step up monetary policy adjustments and strengthen coordination between monetary and fiscal policies to support economic growth amid a “complex and severe” external environment. In a summary of its monetary policy committee’s quarterly meeting held on Tuesday, the central bank said that while China’s economy has made steady progress, it faces mounting challenges, including rising trade barriers.
STOCKS IN NEWS
Waaree Energies
The shares went down 8 percent this week after US customs officials said that they were investigating the Indian solar company as they sidestepped US tariffs on Chinese-made cells and panels by labeling them as ‘Made in India’.
Glenmark Pharma
The shares declined 5.80 percent over the week, after U.S. President Donald Trump announced a 100 percent tariff on imports of branded or patented drugs from October 1, unless the manufacturer is setting up a production facility.
L&T
Shares of Larsen and Toubro are higher by 2.19 percent this week, as investors welcomed the clarity on financials after the Telangana government agreed to take over Phase-I of the Hyderabad Metro project for a payment of Rs 2,000 crore, along with taking over the debt worth Rs 13,000 crore, a report by news agency PTI said.
Zydus Lifesciences
Zydus Lifesciences shares went down more than 6 percent over the period of five days, as they have been penalized of ₹33.50 million following an order related to the alleged availment and utilization of CENVAT (Central Value Added Tax) credit on sales commission paid to foreign entities. The order, issued by the Commissioner of CGST, Ahmedabad, was communicated to the company via email.
Swiggy
Shares went down over 7.5 percent in the week, following the sale of its 12 percent stake in Rapido and the restructuring of its quick commerce arm, Instamart.
Source – Moneycontrol, Reuters