The Hindu Business Line : Pessimistic issues weigh on Sensex

MUMBAI: After sustained five-week of bull run, the market turned negative on the back of some negative features, like projection of lower GDP growth, which drove the benchmark Sensex down by nearly 444 points to slip below the psychological 15K-mark duri ng the shortened week under review.

In the week ended-August 16, the 30-share Sensex of the Bombay Stock Exchange finished at 14,724.18, a net fall of 443.64 points or 2.92 per cent from its last weekend's close.

The broad-based 50-issue Nifty of the National Stock Exchange shed 98.80 points or 2.18 per cent to settle the week at 4,430.70 from its previous weekend's close.

On the domestic front, weak industrial output data, projection of lower GDP growth, no decision on participatory notes (PNs) by market regulator SEBI and rising inflation forced operators and investors to go on relentless selling. A rebound in global cr ude oil prices near $117 a barrel after falling to $112 a barrel, rekindling fears of inflation pressure and renewed jitters about the ongoing credit crisis in the US further dampened the mood.

Signs of a slowdown in the economies of Japan and China also had a sentimental impact on the market. The market resumed the week on upbeat note with a gain of over 336 points but announcement of poor industrial data on Tuesday turned the table in favour of bear operators.

A slowdown in the manufacturing sector pulled the India's Index of Industrial Production (IIP) down to 5.4 per cent in June from 8.9 per cent in the same month last year. Industrial growth almost halved to 5.2 per cent in first quarter of 2008-09 from 10 .3 per cent a year ago. - PTI

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