Market ends flat for the week, PNB fraud shock play spoilsport

Mumbai: Markets spirited attempt reclaim its stature after two weeks of slump were frustrated by Punjab National Bank (PNB) fraud shocker as both the BSE Sensex and Nifty managed to close the week flat at 34,010.76, up 5 points, and 10,452.30 marginally down 2.65 points respectively.

The truncated trading week saw the market resuming on robust note on incessant value buying amid firm global cues and comforting sentiment over the stabilizing economic datas of strong IIP growth and ease in both CPI, WPI inflation.

Later sessions saw volatility creeping back to the trading momentum following detection of key corporate fraud affecting the Banking counters, also loomed by RBI's new norms for recognising stressed assets.

The detection of massive Rs 11,400 crore fraud in India's second largest state-owned lender Punjab National Bank (PNB) played on investors minds.

Intense selling pressure spread across most of the sectors, the PSU banks tumbled nearly 3 per cent, while the broader Midcap and Smallcap massive correction from its all-time highs.

The Sensex started the week higher at 34,203.34 and hovered between 34,535.08 and 33,957.33, it closed the week at 34,010.76, showing a marginal gain of 5.00 or 0.01 per cent.

(The Sensex lost 2,044.68 points or 5.76 per cent during past two week sessions).

The Nifty also resumed the week up at 10,518.20 and traded between 10,618.10 and 10,434.05 before ending the week at 10,452.30, showing a marginal loss of 2.65 points, or 0.03 per cent.

Barring Oil and Gas and Metal the selling was led by PSUs, Banks, Consumer Durables, Auto, Teck, HealthCare, IPOs, Realty, Capital Goods, IT and Power sectors.

The broader midcap and smallcap company shares also corrected substantially.

Meanwhile, foreign portfolio investors (FPIs) and foreign institutional investors (FIIs) sold shares worth Rs 2,678.87 crore during the week, as per Sebi's record including the provisional figure of February 16, 2018.

Among secondary indices, the S&P BSE Mid-Cap index dropped 0.19 per cent and the S&P BSE Small-Cap index declined 0.75 per cent. Both these indices underperformed the Sensex.

Among sectoral and industry indices, bankex dipped by 1.68 percent followed by consumer durables 1.21 per cent, auto 1.08 per cent, teck 0.56 per cent, healthcare 0.56 per cent, IPO 0.50 per cent, realty 0.39 per cent, capital goods 0.21 per cent, IT 0.15 per cent, and power 0.13 per cent, while metal rose by 0.16 per cent, FMCG 0.10 per cent and oil and gas 0.03 per cent.

Among the 31-share Sensex pack, 15 stocks fell and remaining 16 stocks rose during the week. Among stocks, banking giant State Bank of India (SBI) tumbled 8.32 per cent at Rs 271.75. The bank reported net loss of Rs 2416.37 crore in Q3 December 2017 as against net profit of Rs 2610 crore in Q3 December 2016.

Total income rose 17.4 per cent to Rs 62887.06 crore in Q3 December 2017 over Q3 December 2016. It was followed by Yes Bank 4.19 per cent, Axis Bank 3.54 per cent, ITC 1.82 per cent, ICICI Bank 1.76 per cent, Hero Motoco 1.44 per cent, TCS 1.39 per cent, Sun Pharma 1.28 per cent and Maruti 1.19 per cent.

However, HDFC rose by 2.84 percent, Reliance 2.64 per cent, Kotak Bank 2.11 per cent, Wipro 1.82 per cent, HDFC Bank 1.56 per cent, Power Grid 1.27 per cent, Adani Ports 1.21 per cent and Asian paints 1.19 per cent.

The total turnover during the week on BSE eased to Rs 17,444.72 crs as against last weekend's level of Rs 24,106.99 crores and NSE moved down to 1,27,267.45 crores compared to Rs 1,76,449.69 crores previously.