Sensex, Nifty fail to extend weekly gains

The Indian benchmark indices ended the holiday-truncated week on a lower note as the markets failed to sustain the previous week’s momentum. Sentiments were spooked by lower than expected GDP data released in previous week. Meanwhile, sharp drop in August auto sales numbers, decline in PMI manufacturing and services data along with rupee depreciation weighed down the markets. Besides, weak global cues and persistent selling by foreign investors dragged the indices lower.

Indian equity benchmarks Sensex and Nifty closed the week at 36,981.77 and 10,946.20, respectively, logging weekly losses of 0.94 per cent and 0.70 per cent, respectively. Indices had started the week on a negative note and continued to show weak trade for next two sessions. On Friday, the benchmarks delivered a smart bounce back as US and China agreed to resume their trade talks in October. However, Nifty and Sensex failed to recapture crucial levels 11,000 and 37,000 respectively and ended the week with losses.

Week ahead, markets will take cues from US jobs data and a speech by Federal Reserve Chairman Jerome Powell. Jobs growth in US remained muted as nonfarm payrolls increased by just 130,000 against expectations of 150,000. Investors will also be cautious ahead of finance minister Nirmala Sitharaman press conference in Kolkata. At the same time, markets will await IIP and inflation (CPI) data to be released on September 12, 2019.