Markets started the holiday truncated week on an optimistic note
supported by positive macroeconomic data. Business activity in Indian manufacturing sector picked up in the month
of September 2018, amid firmer gains in new orders, output and employment. The
Nikkei India Manufacturing Purchasing Managers'' Index (PMI) - a composite
single-figure indicator of manufacturing performance - rose to 52.2 in
September from 51.7 in August. Besides,
Goods and Services Tax (GST) mop-up rose to Rs 94,442 crore in September, from
Rs 93,690 crore in the previous month. However, markets turned pessimistic and never looked in recovery mood
afterwards as market participants remained concerned with the government data
showing that the growth of eight core sectors slowed to 4.2% in August, due to
fall in output of crude oil, petroleum product and fertilizer. Markets extended southward journey after India''s
services sector activity fell for the second straight month in September 2018. The seasonally adjusted Nikkei Services Business
Activity Index dropped to 50.9 in September from 51.5 in August, signaling the
slowest growth in the current four-month sequence of rising activity. The
Indian indices witnessed bloodbath in last day of the week after the Reserve
Bank of India (RBI) kept the repo rate unchanged at 6.5%.
The Sensex and Nifty slipped 1850 points (5.11%) and 614 points (5.62%)
to 34,377 and 10,316, respectively.
The Mid Cap and Small Cap indices suffered bigger losses and lost 5.14%
and 4.09% respectively.
DIIs were net buyers while FIIs were net sellers during the week.
Sector Wise Movement
BSE Oil & Gas was
down by 2712 points or 18.2%, BSE PSU was down by 533 points or 7.4%, BSE Auto
was down by 1502 points or 7%, BSE Consumer Discretionary Goods & Services
was down by 222 points or 6.00% and BSE FMCG was down by 632 points or 5.5% were
the top losers on the BSE sectoral front, while there were no gainers.
Investors will be
eyeing the release of Index of Industrial Production (IIP) data for the month
of August and the CPI data for the month of September on October 12.
Traders will be
eyeing on the Corporate earning of the important companies scheduled to
announce in the coming week.
The market will be choppy. Traders are therefore
advised to act cautiously and invest in fundamentally good companies on