The Indian benchmark indices in red for the week dragged by banking and financial stocks amid worries of Dewan Housing Finance Corporation (DHFL) crisis aggravating.
The Reserve Bank of India (RBI), yesterday, cut its benchmark interest rate by 25 basis points for the third time in a row. Both the Nifty and the Sensex ended the week in the red after three consecutive weeks of gains.
On Friday, benchmark indices ended marginally higher on Friday led by banking and IT stocks.
The BSE Sensex closed 86 points (0.2 percent) higher at 39,616, down 0.2 percent for the week, while the broader NSE Nifty50 ended 27 points higher (0.2 percent) at 11,870, down 0.4 percent for the week. The Nifty Midcap underperformed indices, losing 1 percent for the week.
Sectoral indices were mixed for the week. The Nifty PSU Bank index fell the most, down over 4 percent followed by the Nifty Pharma (down 3.3 percent), the Nifty Media (down 3.3 percent), the Nifty Energy (down 2 percent, the Nifty Realty (down 1.6 percent) and the Nifty Bank (down 1 percent). Meanwhile, the Nifty FMCG index rose 0.4 percent for the week, followed by the Nifty Auto and the Nifty Metal, which were up 0.2 percent each.
Coal India was the top Nifty gainer this week, up 4 percent followed by Bharti Infratel, Wipro, Hero MotoCorp and Titan.
Bharti Infratel gained 4 percent after National Company Law Tribunal approved the merger of Indus Towers with Bharti Infratel, which will create one of the largest telecom tower companies globally.
Hero MotoCorp rose 3 percent after it reported a 13.5 percent rise in sales to over 6.5 lakh units in May over the previous month.
Wipro gained 2.9 percent for the week after it signed a definitive agreement to acquire International TechneGroup Incorporated (ITI), a global digital engineering and manufacturing solutions company for $45 million.
Bharti Airtel was up 2.4 percent after it announced plans to list its Africa subsidiary on the London Stock Exchange, as it continues its efforts to raise money to reduce debt.
HUL, Vedanta, Adani Ports and UPL were other top gainers for the week.
GAIL was the worst performing stock for the week, down 13 percent after the Petroleum and Natural Gas Regulatory Board of India hiked lower than expected tariff for the company's Hazira-Vijaipur-Jagdishpur pipeline. A number of brokerages including CLSA also downgraded the stock on disappointing tariff revision, further adding to the decline.
Indiabulls Housing Finance declined 7 percent on worries that the latest default on interest payments by DHFL can accentuate contagion risk in India's financial sector after banks, pension, mutual funds and insurance companies together have an exposure of around Rs 1 trillion to the company.
Other major losers included bank stocks with Yes Bank falling 5.3 percent and IndusInd Bank down 3.3 percent. SBI also fell 3 percent. The banks were under pressure during the weak on DHFL exposure worries.
Zee (down 4.8 percent), UltraTech Cement (down 3.9 percent), Dr Reddys Labs (down 3.6 percent) and L&T (down 2.8 percent) were other major draggers for the week.
Apollo Hospitals rose over 7 percent after it reported a more-than-doubled consolidated net profit at Rs 84.4 crore in the March quarter (Q4FY19). The Chennai-based hospital chain had posted a profit of Rs 23.8 crore in the year-ago quarter.
PFC was up 8 percent after it reported over a twofold rise in its standalone net profit to Rs 2,117.56 crore for the March 2019 quarter, mainly on the back of reduction in the cost of funds and retiring of high-cost loans.
Among other gainers, Voltas advanced 6,4 percent this week followed by Havells India (up 5.4 percent), Tata Global Beverages (up 5.3 percent), and NMDC (up 3.2 percent).
Reliance Infra was the top loser in the midcap space, down 28.9 percent on worries of exposure in the DHFL crisis. Other ADAG stocks were also under pressure during the week. Reliance Capital declined 17.8 percent, while Reliance Power was down 17.4 percent.
Dewan Housing Finance also lost 25.3 percent following a slew of credit rating downgrades earlier this week. The downgrades happened after it missed interest payment deadline on a set of outstanding bonds.Among other losers, PC Jewellers fell 19 percent followed by Jet Airways (down 14.2 percent), Jain Irrigation (down 14 percent), Bank of Baroda (down 9 percent) and CG Power (down 8.2 percent).