5 key factors that will influence Sensex, Nifty this week
The BSE benchmark Sensex settled with 0.6 per cent loss last week as market factored in some rationalisation in GST rates, shortfall in tax collection and RBI indication of losing traction on growth
- Jun 23, 2019,
- Updated Jun 23, 2019 4:51 PM IST
Indian benchmark indices, Sensex and Nifty, ended lower last week as volatility persistent in the markets amid negative domestic as well as global cues. Several factors like concern of economic slowdown at home, global trade war, geopolitical tension in West Asia and forecast of a weak monsoon spooked investor sentiment. The BSE benchmark Sensex settled with 0.6 per cent loss as market factored in some rationalisation in GST rates, shortfall in tax collection and RBI indication of losing traction on growth.
The market capitalisation (m-cap) of six of the 10 most valued domestic companies declined by Rs 53,458.80 crore last week, led by Reliance Industries Ltd (RIL). RIL's valuation fell by Rs 23,929.9 crore to Rs 8,10,889.80 crore, followed by Tata Consultancy Services, HDFC Bank, HUL, HDFC and ITC among others.
"Concern over shortfall in tax collection and RBIs indication of losing traction on growth impacted the sentiment, where the government is not likely to stick on fiscal target of 3.4% for FY20. The market seems to factor in some rationalization in GST rates in the upcoming meeting and more fiscal measures in the budget due next month. Delayed monsoon and a surge in oil prices due to US-Iran tensions further led the consolidation," said Vinod Nair, Head of Research, Geojit Financial Services.
Indian benchmark indices, Sensex and Nifty, ended lower last week as volatility persistent in the markets amid negative domestic as well as global cues. Several factors like concern of economic slowdown at home, global trade war, geopolitical tension in West Asia and forecast of a weak monsoon spooked investor sentiment. The BSE benchmark Sensex settled with 0.6 per cent loss as market factored in some rationalisation in GST rates, shortfall in tax collection and RBI indication of losing traction on growth.
The market capitalisation (m-cap) of six of the 10 most valued domestic companies declined by Rs 53,458.80 crore last week, led by Reliance Industries Ltd (RIL). RIL's valuation fell by Rs 23,929.9 crore to Rs 8,10,889.80 crore, followed by Tata Consultancy Services, HDFC Bank, HUL, HDFC and ITC among others.
"Concern over shortfall in tax collection and RBIs indication of losing traction on growth impacted the sentiment, where the government is not likely to stick on fiscal target of 3.4% for FY20. The market seems to factor in some rationalization in GST rates in the upcoming meeting and more fiscal measures in the budget due next month. Delayed monsoon and a surge in oil prices due to US-Iran tensions further led the consolidation," said Vinod Nair, Head of Research, Geojit Financial Services.