Sensex weekly loss of 312 points on economic worries

Profit-booking in view of global economic worries, following tension in Middle East and North Africa region and powerful earth quake in Japan pulled down the BSE benchmark Sensex by 312 points.

Slow down in industrial growth to 3.7 per cent in January 2011, compared to 16.8 per cent in the year ago period too weighed on the market mood, possibly prompting the central bank to take a re-look at its monetary tightening policy to contain rising prices.

Expectations of further hike in key interest rate by the apex bank in their next policy setting meeting on March 17, 2011 also put pressure on the market.

Japan was struck by a magnitude 8.9 earthquake off its north eastern coast followed by tsunami took its toll on share values as investors rushed to book profits.

A wider-than-expected US trade deficit and a rare trade shortfall in China for February, together with the sovereign downgrade for Spain by Moody’s and the turmoil in Saudi Arabia raised investor fears of higher oil prices and slower growth.

Global crude oil which has crossed $ 106 a barrel mark to about 29-month high also worried market participants as they expected another round of rise in oil prices by the government in near term to stem the spiralling inflation.

Meanwhile, food inflation fell to a single digit at 9.52 per cent for the week ended Feb 26 on account of a decline in prices of potatoes, pulses and wheat.

The BSE benchmark resumed lower at 18,361.65 and hovered in a range of 18,583.30 and 18,058.71 before settling the week at 18,174.09, showing a net loss of 312.36 points or 1.69 per cent from its last weekend’s level.

The Nifty also fell by 93.30 points or 1.68 per cent to end at 5,445.45 from its last weekend’s level.

Among the major indices, the BSE—CG dropped by 3.03 per cent followed by the BSE Metal 2.90 per cent, the Bankex 2.02 per cent, the BSE—Auto 1.70 per cent and the BSE—Power 1.60 per cent.

The dollex 100 and the dollar 200 also fell by 2.00 per cent and 1.91 per cent respectively.

However, the BSE—Realty index shot up by 1.26 per cent and the BSE—OIl&GAS moved up by 0.72 per cent.

Major losers were Tata Steel (5.76%), BHEL (5.29%) TCS (5.13%), State Bank Of India (4.76%), Maurti Suzuki (4.65%), Larsen (4.28%), Jindal Steel (4.01%), Sterlite Ind (3.90%), HDFC (3.07%) and M&M (3.04%).

While, ONGC firmed up by 4.73% followed by REL Com 3.27 per, Wipro by 1.69%, DLF 1.19% and RIL 1.00%.

The total turnover at BSE and NSE were Rs 15,759.09 crore and Rs 51,696.04 crores respectively from its last weekend’s level of Rs 14,445.93 crore and Rs 56,543.00 crore.

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