Why The Sensex Saw Its Biggest Weekly Fall Of 2015?

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It was not a good week for the markets as the benchmark indices ended sharply lower on the first and the last day of the trading week, resulting in huge weekly losses for the indices.

Why The Sensex Saw Its Biggest Weekly Fall Of 2015?
Indices
Sensex26,236.87Sensex Quote-155.89 [0.59%]
Nifty8,102.05Nifty Quote-41.10 [0.50%]
Here are a few reasons for the fall. 

US Interest Rate Hike Fears

It began the week on a dismal note after the previous week saw solid robust employment data from the US. This sparked concerns that there would be an earlier than expected interest rate hikes in the US.

Inflation Data Worrying

Worries that the rise in CPI inflation data could hault the RBI rate cuts, also affected markets sentiments. CPI inflation for the month of Feb rose to 5.46%. Analysts had expected inflation readings near 5.25 per cent.

Rupee Falls To Two Week Low

A drop in the rupee to a two week low also discouraged investors. FIIs though did not sell aggressively through the week and on a few days their net selling was modest in the cash markets.

Trend For the Next Week

The mood for the next week does not look too encouraging and analysts expect the markets to fall in the coming week as well. Technicals are not perfectly placed for a rally as the Nifty has fallen below the 8700 levels.

Also, there are no major triggers at the moment for the markets, which are now awaiting the RBI Monetary Policy dues next month.

GoodReturns.in

Read more about: sensex, nifty
Story first published: Saturday, March 14, 2015, 13:38 [IST]
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