Mumbai: Global and local cues coupled with a volatile currency led to build up of selling pressure in the Indian equities market during the week ended Dec 20.
Selling by foreign investors also subdued sentiments during the week, even as the opposition did not stop obstructing both houses of parliament where important bills were stuck for approvals.
As crude price continued to fall, the concern over global growth increased. As a result, profit booking picked-up in the market.
The benchmark Sensex was down marginally by 0.07 percent or 21.16 points in the week ended Dec 19 from its previous weekly close on Dec 13. The index closed at 27,371.84 points, while it had ended trade at 27,350.68 points on Dec 13.
In the week ended Dec 13 the Sensex had plunged by four percent or 1,107.42 points from its previous weekly close on Dec 5. The index closed at 27,350.68 points, while it had ended trade at 28,458.10 points on Dec 5.
"As crude price continues to fall the concern over global growth is increasing. As a result, profit booking has increased from FIIs. India is also impacted by the fact that we have moved fast, ahead of fundamentals, in likelihood of expectation," said Vinod Nair, Head - fundamental research, Geojit BNP Paribas.
"We continue to believe that India is in a healthy platform awaiting reform and European Central Bank policy. The domestic economy is already in a bonus (inflation, fiscal, oil and metal)."
For the week ended Dec 19, the FPIs sold stocks in equity markets worth Rs.4,838.86 crore or $765.34 million, according to data with the National Securities Depository Limited (NSDL).
The FPIs had bought shares worth Rs.5,116.42 crore or $826.25 million. The FPIs had also sold shares worth Rs.878.79 crore or $141.49 million.
The foreign institutional investors (FIIs) along with sub-accounts and qualified foreign investors have been clubbed together by market regulator Securities and Exchange Board of India (SEBI) to create a new investor category called FPIs.
