Comments
The BSE benchmark Sensex extended losses for the second consecutive week by slipping by another 398 points on persistent selling pressure from operators on hike in interest rates by the Reserve Bank of India (RBI).
In addition to the central bank’s anti-inflationary stance, weak global cues also prompted investors to liquidate their positions. Fears of a potential default by Greece and weak economic data in the US added to the nervousness among investors.
The Sensex fell by 398.01 points or 2.18 per cent to 17,870.53 and the Nifty also lost by 119.40 points or 2.18 per cent to 5,366.40. The BSE Small-Cap index fell 1.38 per cent and the BSE Mid-Cap index 1.21 per cent.
Key benchmark indices dropped to a three-week low as concerns over Greece’s debt crisis rattled the world stocks.
Interest rate sensitive realty, banking and auto stocks declined after the RBI raised its key lending rate viz. the repo rate by 25 basis points to 7.5 per cent to tame inflation.
Reliance Industries (RIL) was the biggest Sensex loser of the week. The stock fell 8.01 per cent to Rs 868.40 on reports that a government watchdog has accused the Oil Ministry for favouring the firm by allowing it to double the development cost of its KG-D6 gas field.
Among the major indices, the BSE Oil & Gas fell by 4.8 per cent followed by the BSE-IT 4.51 per cent, the BSE-Teck 3.14 per cent, the BSE-Metal 2.93 per cent, the BSE-Auto 1.97 per cent and the BSE-Realty by 1.88 per cent.
Maruti Suzuki India tumbled 5.07 per cent to Rs 1167.40, hit by a strike at the company’s Manesar plant. Tata Motors shed 3.82 per cent to Rs 980.80.
IT stocks declined on weak economic data in the US and on continuing sovereign debt crisis in Europe. TCS fell 6.57 per cent to Rs 1,110.50 and Wipro fell 6.55 per cent to Rs 409. Infosys Technologies fell 3.4 per cent to Rs 2,764.40.
Other losers were Hindalco (7.92 per cent), Sterlite Industries (4.82 per cent), DLF (2.82 per cent), Mahindra & Mahindra (2.61 per cent), HDFC (1.81 per cent) and State Bank of India (1.42 per cent).
Reliance Infrastructure was the top Sensex gainer. The stock jumped 6.64 per cent to Rs 580.50. FMCG major Hindustan Unilever rose 3.12 per cent to Rs 321.05 on defensive buying in a falling market.
Telecom majors Reliance Communications was up 2.81 per cent and Bharti Airtel up 1.73 per cent.
The total tunrover on the BSE and NSE shot up by Rs 14,635.11 crore and Rs 49,014.84 crore, respectively from Rs 12,540.55 crore and Rs 42,603.73 crore previously.
FOREX: The rupee snapped its last two-week gains by slipping 14 paise to end the week at 44.86/87 against the American currency due to fresh dollar demand from banks and importers in view of a firm dollar overseas amid weak equity markets.
The rupee resumed the week lower at 44.86/87 per dollar at the Interbank Foreign Exchange (Forex) market against the last week-end level of 44.72/73 per dollar and hovered in a range of 44.6600 and 44.9650 before settling the week at the 44.86/87.
Commodity market was flat this week. Gold traded weak throughout the week. It traded in a very short range and closed near to its opening levels. Silver also continued to fall for the third consecutive week.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.