The Indian indices ended almost 4 percent lower this week amid escalating tensions between the US and China. Asian shares also remained subdued during the week amid worries of a trade war.
US President Donald Trump on May 6 said he would increase the tariff to 25 percent from 10 percent on $200 billion worth of Chinese goods. The rise in tariff took effect from today.
Meanwhile, Beijing vowed to strike back, ratcheting up tensions. US and Chinese negotiators are trying to rescue a faltering deal aimed at ending the 10-month trade war.
For Friday, the indices ended lower, extending losses for the eighth session, dragged by IT and metal stocks. Weakness in broader Asian markets over Sino-US trade tensions kept investors on the edge.
The BSE Sensex closed 96 points (0.26 percent) lower at 37,463, down 3.8 percent for the week, while the broader NSE Nifty50 ended 23 points lower (0.2 percent) at 11,279, falling 3.7 percent for the week. The Nifty Midcap outperformed indices, falling 2.5 percent for the week.
All sectoral indices ended in the red for the week. The Nifty Media fell the most, down 6.7 percent followed by the Nifty Metal (down 6.3 percent), the Nifty Energy (down 5.9 percent) and the Nifty Realty (down 4.3 percent) for the week. The Nifty Metal was the best performing sector, up 1.1 percent followed by Nifty Energy, which gained 0.8 percent.
Tata Consultancy Services (TCS) was the only gainers on the Nifty50 index for the week, up 0.2 percent. The Tata company rose during the week as the rupee fell due to rising US-China trade war concerns. The IT major also reclaimed the status of the country's most valued firm by market valuation, surpassing Reliance Industries Ltd on May 9.
Tata Motors was the worst performing stock for the week, down 11.7 percent after Jaguar Land Rover (JLR) retail sales in April 2019 were 39,185 vehicles, down 13.3 percent compared to April 2018. The company also clarified that there was no truth to reports of the sale of Jaguar Land Rover to French automotive group PSA.
Reliance Industries Ltd also fell 11.6 percent for the week after Morgan Stanley downgraded the Mukesh Ambani-led company to "equal-weight" with the price target of Rs 1,349 per share. The company lost more than Rs 96,000 crore in the market capitalisation or stock market value in the last four days post the downgrade.
Tata Steel slipped 10 percent after ThyssenKrupp said that it is expecting the joint venture with Tata Steel to fail, sources told
Reuters. The two companies last year struck a deal to combine their European steel units to create the continent's second-largest steelmaker after ArcelorMittal, a move that must be cleared by the European regulators.
Zee Entertainment Enterprises fell 9.7 percent on reports of the sale of pledged shares. However, the company denied such rumours. It also said that it was in an advanced stage of the stake sale process, which will complete in 6-8 weeks.
In the midcap space, Reliance Communications was the top performer, up 23 percent after the National Company Law Tribunal allowed the company to exclude the 357 days spent in litigation and admitted it for insolvency.
PNB Housing Finance shares surged 12.5 percent on Friday after the company reported a 51 percent rise in its consolidated net profit at Rs 379.77 crore for the fourth quarter of the fiscal year 2018-19.
Edelweiss Financial Services added 12 percent after the NBFC arm of Edelweiss Group announced the public issue of Secured Redeemable Non-Convertible Debentures (NCDs) worth Rs 300 crore.
Among other gainers, PC Jeweller gained 16.3 percent this week followed by Tata Chemicals (up 6.1 percent), Gallant Ispat (up 11 percent) and Welspun (up 3 percent).
DHFL was the top midcap loser for the week, down 17.4 percent followed by JSPL (down 10.2 percent), Bharat Financial Inclusion (down 8.5 percent), Vakrangee (down 8 percent) and GSPL (down 7.8 percent).