Third weekly loss for indices; Financials become top losers

The broader indices in the domestic equity markets remained in cautions to negative bias amid extended lockdown and weak economic recovery. Indian equity benchmark indices ended the week lower by one per cent.

Sensex ended 1.3 per cent lower while, Nifty closed 1.1 per cent lower along with mid-cap and small-caps, which too closed with losses of 2.5 per cent and 2.2 per cent, respectively. This is the third consecutive weekly fall in the benchmarks. Financial sector faced a tough time and registered the biggest fall this week, among sectoral indices.

At the index level, ITC remained flavour of the street to gain as much as 13.2 per cent for the week. On the other hand, IndusInd Bank faced severe selling pressure to settle 19.2 per cent down, at the end of the week.

The weak trend can be expected to continue as uncertainty over economic revival still looms large. As per recent updates, COVID-19 cases have seen a continuous rise in India. Further, though the lockdown in many parts of the world is about to end, its impact is still very much unknown. Further, US and China tensions are making headlines again. News reports of delisting of Chinese stocks, more trade-related sanctions have already surfaced over this week.

Investors are advised to apply very simple approach that is, look for the value investing and not opportunity. Besides, riding the sentiment would be beneficial for the traders.