Mumbai: Markets endured immense volatility and unprecedented sell-off sessions by FIIs during the week, leading the benchmark Sensex and the CNX Nifty to log their multi-months low though it managed to accrue gains on hectic short-coverings on April 8 on government's move to soothe foreign investors' tax worries and the rupee rebound.
The week commenced strong, with investors taking fresh positions at the beginning of May contract on heavy sell-off in April series and the passing of Finance Bill, 2015.
However, the momentum was short-lived as sentiment was overlapped by negativity on sustained selling by foreign portfolio investors (FPIs) on worries over Minimum Alternate Tax (MAT), weak corporate earnings, delay over passage of key reforms, including GST, and the Land Bill.
Even Bollywood superstar Salman Khan's conviction swayed entertainment-related stocks.
Selling pressure also built up due to sudden spurts in brent crude price, the rupee breaching the $64 mark to 20-month low and the global sell-off after US Federal Reserve chief Janet Yellen's comment on equity valuations leading to global bond routs.
Investor worries abated after the government set up a high-level committee to look into the MAT issue, which turned the table in favour of bulls.
The BSE 30-share indicator resumed firm and hovered in a wide range of 27,603.71 and 26,423.99, before recovering to end with a small weekly rise of 94.08 points, or 0.35 percent, to end at 27,105.39. In the last straight three weeks, it had crashed 1,868.07 points, or 6.47 percent.
Similarly, the broader 50-issue CNX Nifty opened higher at 8,230.05 and moved in a breadth of 8,355.65 and 7,997.15 before settling the week better at 8,191.50, a modest gain of 10.00 points, or 0.12 percent.
The market saw a bloodbath on Wednesday with the Sensex tanking 723 points -- its biggest single-day fall since Narendra Modi government took over -- on huge sell-off by FPIs on concerns over GST and other reforms.
Bouts of buying were seen in hammered stocks from FMCG, metal, tech, realty, oil & gas and auto while IT gained on rupee devaluations.
However, heavy off-loading was observed mainly in consumer durables, banking, power and capital goods.
Second-line shares, too, came under profit-booking by wary retail investors as BSE-Midcap and BSE-Smallcap indices closed down 1.73 percent and 1.05 percent, respectively, thus underperforming the Sensex.
Meanwhile, FPIs sold shares worth Rs 6,972.23 crore during the week, factoring in provisional data of May 8.
Jignesh Chaudhary, Head of Research, Veracity Broking Services, said, "The Indian equity markets had biggest fall on May 6 in the trading week. On the last trading day, the markets opened up with a huge upside gap and continued the momentum tracking the global cues. The main reason behind was the result of UK elections that gave David Cameron another shot to govern the country.
There were some positive Q4 results by major blue chips such as HUL and Eicher Motors."
He added: "Another reason was the softening crude price that fuelled the markets to grow. The coming week is going to be active for Indian and US economies. Trading technicals are suggesting a positive trend for both the markets."
