Market weekly wrap-up: Sensex, Nifty decline over 2 per cent over elevated crude oil prices, bond yields

The domestic equity benchmark indices extended losses for the fifth straight week amid a surge in global crude oil prices that hit a fourweek high on Friday due to the heightened tensions between US and Iran and higher bond yield ratesAnalysts also pointed out that the booming activity in the primary markets with nearly 12 mainboard IPOs valued at over Rs 7000 crore during the week diverted the investor sentiment from the secondary market weighing on the indicesThe benchmark indices corrected sharply and the market breached the 2380076000 crucial support zone and postbreakdown selling pressure intensified according to Amol Athawale VP Technical Research Kotak SecuritiesDuring the week the Sensex tumbled 173367 points or 227 per cent while the Nifty slipped 49960 points or 209 per cent The indices declined on four out of the five days during last weekDomestic equities ended the week decidedly lower extending the corrective trend as an energyled inflation narrative dominated sentiment Crude sustaining above the USD 100 per barrel mark on continued hostilities and retaliatory action in West Asia remained the central variable through the week Compounding the pressure the fund flow environment turned increasingly challenging as expectations of synchronized monetary tightening gained traction Vinod Nair Head of Research Geojit Investments saidRising global bond yields together with concerns over a potential unwind of yenfunded carry trades amid expectations of a Bank Of Japan BOJ rate hike and a stronger yen weighed on investor risk appetite and heightened concerns over capital flows into emerging markets Domestically rising bond yields and a depreciating rupee weighed on sentiment through the week he addedOn Friday the market indices however recovered from their intraday lows to minimise the fall as the crude oil prices eased The 30share BSE Sensex dropped 12083 points or 016 per cent to end at 7478176 while the 50share NSE Nifty slipped 7970 points or 034 per cent to settle at 2339810Sectoral performanceMidcap 100 and Smallcap 100 declined 03 per cent and 06 per cent respectively Private Banks outperformed gaining 05 per cent while Realty was among the key laggards with the Nifty Realty index declining sharply and hitting a more than twomonth low led by Godrej Properties and Lodha amid the broader riskoff sentiment and rising bond yields Siddhartha Khemka Head of Research Wealth Management Motilal Oswal Financial Services saidRealty and IT sectors witnessed the highest selling pressure declining around 5ndash7 per cent during the weekFII outflowsForeign Institutional Investors FIIs ended the week as net sellers for the fourth consecutive week offloading Rs 1795 crore Domestic Institutional Investors DIIs stayed on the buy side extending their streak with accumulation of Rs 6419 crore said Pabitro Mukherjee Deputy Vice PresidentResearch Bajaj Broking saidMarket outlookAccording to Khemka investors will focus next week on Indias August CPI and WPI inflation the US Fed policy decision next week US retail sales and industrial production with crude prices the rupee and global yields remaining key market monitorableIn the primary market the National Stock Exchanges NSE Rs 22569 croreIPO is going to hit the market on September 17 with a price band of Rs 1700ndash1785 per share for its issueThe coming week brings a dense macro calendar with key releases like the US and domestic inflation prints and policy decisions from both the Fed and the BoJ which alongside the trajectory of crude will set nearterm direction Elevated energy prices sustained foreign outflows and geopolitical uncertainty will keep volatility high However resilient domestic fundamentals and strong institutional support could continue to attract buying at lower levels and contain the downside Nair said