The Hindu Business Line : Sensex, Nifty down 5% on global gloom

MUMBAI: Stock markets registered the fourth straight weekly loss as the key indices, benchmark Sensex and Nifty, plunged by five per cent during the week on global mayhem created by the unfolding US sub-prime mortgage crisis.

In high volatility, the Bombay Stock Exchange's (BSE) barometer crashed 726.73 points or 4.89 per cent to close the week at 10-week low of 14,141.52 from previous weekend's close of 14,868.25.

The Sensex tanked by a total 1,424.03 points or 9.15 per cent in the last four weeks. The broader S&P CNX Nifty of the National Stock Exchange (NSE) tumbled by 225.30 points or 5.20 per cent to end the week at 4,108.05 from last weekend's close of 4,333 .35.

A slew of factors like unwinding of yen carry trades, hedge fund redemption pressure, heavy FII pull out and fear of global credit squeeze caused by sub-prime concerns cast a shadow on the local bourses.

Foreign Institutional Investors (FIIs) alone pulled out a massive Rs 7,033 crore, including provisional numbers of Aug 17, during the week. The markets, however, showed some resilience at the weekend, when the Sensex bounced back from the intra-day low of 13,779.88 largely on signs of recovery in European stocks.

Domestic financial institutions played saviours by pumping Rs 414 crore in the market. As per provisional figures, they injected Rs 1,944.48 crore on August 17. Twenty-nine of the thirty shares on the Sensex recorded sharp losses.

Metal counters bore the brunt of selling onslaught with the BSE-Metal index tumbling by 1,052 points or 9.68 per cent to 9,811.61. Other sectoral indices were also down by 2-6 per cent.

However, recovery in European and American bourses at the weekend is expected to provide the much-needed relief to the battered markets in the coming week. The Dow Jones Industrial Average recovered by 233.30 points while Nasdaq Composite Index moved up by 53.96 points.

The respite came after the US Federal Reserve lowered the rate at which it lends to banks in a bid to restore order in financial markets. During the four-session week, the trading volume on the BSE and the NSE stood at Rs 20,847 crore and Rs 43,168 cror e.

The broad-based BSE-100 Index plunged by 398.62 points or 5.20 per cent to finish the week at 7,262.19 from previous weekend's close of 7,660.81. The BSE-200 Index and the Dollex-200 were quoted sharply lower at 1,720.99 and 705.21 at the weekend from p receding weekend's close of 1,814.14 and 743.38 respectively.

The BSE-500 Index dipped by another 284.06 points to end the week at 5,530.94 from last weekend's close of 5,815.00 and the Dollex-30 ended sharply down at 2,857.54 from 3,004.38 from weekend.

On the NSE, the S&P CNX Nifty crashed by 251.35 points or 6.80 per cent to 3,444.75 from previous weekend's close of 3,696.10 and the S&P CNX Nifty Junior by 506.85 points or 5.94 per cent to conclude the week at 8,022.35 from 8,529.20. - PTI

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