After respite for a week, the S&P BSE benchmark Sensex resumed its downward journey, tumbling almost 386 points to log more than four-month closing low of 18,450.23 during the first week of the new financial year as the market reeled under a slew of negative factors.

The market sentiment was dented by renewed fears of early general elections amid concerns over Q4 corporate earnings.

Weak global cues following eurozone debt crisis and capital outflows also weighed heavily on the bourses.

Shares of FMCG, metal, teck, auto, IT, consumer durable, and capital goods firms declined sharply due to heavy selling from operators and investors.

However, shares of healthcare and refinery sectors firmed up on good buying enquiries. Small-cap stocks continued to remain in demand on heavy buying by retail investors. As a result, the S&P BSE-Smallcap index outperformed the Sensex and rose smartly by 1.89 per cent.

The 30-share Sensex resumed up at 18,890.81 and firmed up further to hit a high 19,060.51 after Finance Minister P Chidambaram reiterated the Government’s commitment to additional economic reforms and pro-growth stance.

However, the BSE benchmark later succumbed to profit- booking following 2.5 per cent fall in February production of eight core sector industries. It dropped to 18,389.29 before ending the week at more than four-month low of 18,450.23, a loss of 385.54 points, of 2.05 per cent. Last week, the key index had gained 100.17 points, or 0.53 per cent.

The NSE’s 50-share index Nifty also dropped by 129.30 points, or 2.28 per cent, to settle at 5,553.25.

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