Markets Swing High And Low

Selling pressure in heavyweights and profit booking in broader markets pulled the Indian benchmark indices lower. Sensex fell by 1.78 per cent while Nifty declined by 1.61 per cent during the last fortnight.

After an eventful 2020, the markets have continued to soar high in 2021. But during the recent fortnight bears dominated the domestic markets. Selling pressure in heavyweights and profit booking in broader markets pulled the Indian benchmark indices lower. Sensex fell by 1.78 per cent while Nifty declined by 1.61 per cent during the last fortnight. Compared to domestic indices, other Asian indices outperformed with Shanghai Composite index and Nikkei gaining by 2.63 per cent and 2.43 per cent, respectively. Hong Kong’s Hang Seng index zoomed by 8.06 per cent during the fortnight.

European indices declined with FTSE 100 ending the fortnight in red (down by 2.35 per cent) while DAX and CAC 40 declined by 2.10 per cent and 3.36 per cent, respectively. In the US, DJIA fell by a mere 0.16 per cent while S&P 500 rose by 1.47 per cent. NASDAQ jumped by 4.52 per cent.

Amongst the domestic sectoral indices, Metal index tumbled by 6.72 per cent. 

Ahead of the presentation of the Union Budget in February 2021, profit booking dragged down indices in the last few weeks. Realty index fell by 3.43 per cent while Healthcare index declined by 3.80 per cent. Other indices such as IT, Power and FMCG also decreased by 2.64 per cent, 1.73 per cent and 1.30 per cent, respectively. Auto index was the only one to gain during the recently ended fortnight, surging by 4.32 per cent. In the broader markets, Small-Cap index and Mid-Cap index decline by 3.53 per cent and 3.18 per cent, respectively. 

Trading data suggests that in the last few weeks FIIs were net buyers to the tune of Rs 18,810.52 crore whereas DIIs were net sellers to the tune of Rs 11,269 crore.

During the fortnight WTI Crude prices rose by 1.45 per cent to USD 53.01 from USD 52.25. Since the beginning of the month of January 2021, WTI crude prices have surged by 9.25 per cent from USD 48.52. In the last few weeks, Brent Crude prices gained by 1.22 per cent to touch USD 56.34 from USD 55.66. Since January 2021, Brent Crude prices have jumped by 8.76 per cent from USD 51.80. Gold prices remained volatile during the fortnight, gaining by a mere 0.44 per cent to Rs 50,515 for 10 grams of 24 carat gold.