Markets had a volatile week as financial markets across the world slumped on bets that the trade truce between China and the United States won’t last after the arrest of Huawei CFO Meng Wanzhou. Back home, investors turned cautious ahead of the outcome of crucial state polls, while the RBI policy decision was on expected lines with status quo on key rates.
Indian stock markets ended the week on a high note as global equities rebounded amid expectations of slower rate hikes by the U.S. Fed and easing of U.S.-China trade tensions. The rupee and crude oil prices also supported sentiments.
Markets stalled after a three-week rally despite a stronger rupee and falling oil prices as investors start assessing the risks associated with the general election due by May.
Indian stocks rose for the third consecutive week for the first time since August on signs that liquidity could increase and the market correction was more or less over. Benign oil prices and the rupee’s appreciation against the dollar also boosted sentiment.
Indian markets had a dream run during the week thanks to a confluence of positive factors including a rising rupee, falling crude oil prices, a U.S. waiver from Iran sanctions and decent corporate results. Benchmark indices gained about 5 percent during the week with the Nifty marching past the 10,550-mark.
Markets ended lower in a highly volatile trading week with the Nifty falling 2.65 percent to 10,030. Crude slumped 4.2 percent to a two-month low of $75 but negative global cues, disappointing quarterly results and liquidity concerns over the NBFC crisis had a negative impact on stocks.
A sell-off in the markets resumed after the previous week's breather, with the volatile Nifty trading in a wide range between 10,250 and 10,700 levels. Growth concerns in China and global trade tensions weighed on global sentiments. Plans for bilateral trade talks between the United States and China have stalled, keeping markets shaky and putting pressure on China's already softening economy and weakening currency.
Indian indices, already reeling from the IL&FS crisis, falling rupee and high oil prices, got another jolt from a selloff in U.S. stocks following President Donald Trump's scathing remarks against the Federal Reserve. Adding to investors' concerns was the IMF’s prediction that the global economy will grow at a slower pace of 3.7 percent compared to its earlier expectation of 3.9 percent. This deepened the cuts during the first half of the week. The Nifty, however, rebounded from the extremely oversold territory to end the week 1.5 percent higher.
Markets posted their worst week in 31 months, with the Nifty losing all the gains it had made in 2018 to end at 10,316. A confluence of factors including the RBI’s surprise decision to keep the repo rate unchanged, fears that the government will move away from deregulation of fuel, and the IL&FS fiasco led to an extended decline spanning five weeks.
Markets ended in the red for the fourth consecutive week led by a sharp correction in financial services. Sentiment remained cautious after the government raised import tariffs on select goods and the RBI announced measures to ease liquidity concerns.