After climbing for 4 successive weeks, it looked like we would gather further momentum, but, a weak set of results, pushed benchmark indices lower with the Sensex losing 813.98 points, or 3.05 per cent, and the NSE Nifty plunging 229.70 points, or 2.84 per cent. This was the worst performance seen by the Sensex and the Nifty in 2 months.
In fact, the Sensex and the Nifty fell on all 5 trading sessions of the week in a row. Axis Bank, Larsen and Toubro and ITC were responsible to a large extending in dragging the Nifty lower this week.
Markets were very rather happy on the day Axis Bank declared its results and the stock ended higher.
Larsen and Toubro also saw a sharp drop in its share price on Friday, after the company reported numbers. The company sounded very bearish and this is what it had to say:
"Slowing global economics, depressed commodity prices, weakening currencies and capital outflows are constraining the growth prospects of emerging economics. Uncertainties in the financial markets and excess capacities across the world have also impacted the investment sentiment, " it said.
ITC Shares also slumped 4 per cent on Friday, after its sales declined for the quarter ending Sept 30. Profits at the company were more or less in line with estimates.
In fact, a drop in the Indian markets comes on the back of robust global cues from across the globe. Most of the global markets saw good gains this week.
For India, Foreign Funds sold heavily on Friday, though domestic institutions managed to support the market, it did not help sentiments, particularly on Friday.
In fact, on this day, which was also the first day of trading for the Nov F&O series, Foreign Portfolio Investors bought shares worth Rs 1560 crores, while FPIs sold shares worth Rs 1461 crores.
All in all it was a bad week for the market, which saw stocks seeing their worst fall in 2 months. Selling in banking, infrastructure and FMCG dragged stocks lower.
The markets are ready to severely punish under performance and with most of the biggies having declared their results markets will wait for the results from some of the PSU banking names.