Market snaps two-week gains, sheds 2% on US rate hike fears

Mumbai: The BSE Sensex fell nearly 2 percent at 25,638.11 and Nifty tanked below the key 7,800-mark during the week under review amid fears of US Fed rate hike this month.

Stock momentum in the first two days was positive but lacklustre on higher July-September GDP data and likelihood of passage of the GST Bill.

Though RBI kept the key repo rate steady at 6.75 percent, the market enthusiasm worn out from the third session amid combined worries over data of November PMIs manufacturing which fell to 25-month low, and stagnation in services sector after its four straight months expansion.

The selling pressure also aggravated by US Fed Chair Janet Yellen's comments on first interest rate hike nearly over a decade spurring concerns of flight of capital from emerging market.

Sentiments also took a hit by the sell-off in global equities reacting to the much hyped higher stimulus measures from European Central Bank bond buying programme which was shunned and fell short of market expectations.

Domestic enthusiasm also dissuaded by heavy FII sell-off and volatile rupee valuation which lingered around over two year lows.

The Sensex resumed higher at 26,142.53 and hovered between a high of 26,256.42 and low of 25,623.71 before finishing the week at 25,638.11, showing a fall of 490.09 points or 1.88 percent.

The 50-share Nifty also dropped by 160.80 points or 2.02 percent to 7,781.90.

Selling was led by Banking, Auto, Consumer Durables, Teck, FMCG, PSUs, Power, Capital Goods and IT sectors. While the broader midcap witnessed selling, smallcap shares saw some buying activity.

Foreign portfolio investors (FPIs) continued their selling

spree during the week as they sold a net Rs 4,108.13 crores as per SEBI's record including the provisional figure of December 4.

The BSE Mid-Cap index fell 49.46 points or 0.45 percent to settle at 10,935.11. The fall in the index was lower than Sensex's decline in percentage terms. The BSE Small-Cap index rose 11.68 points or 0.1 percent to settle at 11,557.52. The index outperformed the Sensex.

Among the 30-share Sensex pack, 23 stocks declined and rest of them rose during the week.

Major losers were Bharti Airtel (5.97 percent ) followed by HDFC (4.73 percent), Tata Motors (4.23 percent), BHEL (4.15 percent), SBI (3.45 percent), ONGC (3.25 percent), Hero Motoco (3.22 percent), ICICI Bank (3.02 percent), ITC (2.43 percent) and M&M (2.39 percent).

However, Tata Steel gained 3.89 percent followed by Dr Reddy by 3.09 percent, Sun Pharma by 2.18 percent, Hindalco by 2.06 percent and Maruti by 0.54 percent.

Among the S&P BSE sectoral indices, Bankex fell 2.68 percent, Auto 2.12 percent, Consumer Durables 1.83 percent, Teck 1.66 percent, Fast moving Consumer Goods 1.56 percent, Capital Goods 1.39 percent, IT 1.29 percent, Power 0.55 percent and Oil & Gas by 0.23 percent.

However, Metal rose by 1.91 percent, followed by Healthcare by 0.85 percent and Realty by 0.35 percent.

The total turnover at BSE and NSE rose to Rs 14,943.39 crores and Rs 94,796.17 crores respectively from the previous weekend's level of Rs 11,087.94 crores and Rs 69,864.40 crores respectively.