Stocks

Sensex tanks 295 points this week

PTI Mumbai | Updated on March 19, 2011 Published on March 19, 2011

The BSE benchmark Sensex tumbled by another 295 points below the psychological mark of 18,000 to close at a nearly three-week low of 17,878.81 on across-the-spectrum sell-off caused by political insecurity, amid rising crude oil prices and heavy capital outflows.

The shadow of fresh allegations over cash-for-vote during 2008 trust vote cast over the market performance.

Hike in the key policy rates by 25 basis points each and raised forecast of March-end inflation by the apex bank weighed on the market sentiment.

To tackle the rising inflation, the Reserve Bank of India on Thursday, raised the short-term lending (repo) and borrowing (reverse repo) rates by 25 basis points each to 6.75 per cent and 5.75 per cent, respectively, fuelling speculation that the loans for housing, auto and corporates may get dearer thus affecting the bottom-lines of the companies in these sectors.

RBI has also raised the inflation projection to 8 per cent for March-end against the earlier 7 per cent saying it would continue with its policy to contain the rate of price rise.

Interest rate sensitive stocks from auto, realty and banking segment attracted profit-booking.

US crude futures traded at $102.05 a barrel led by ongoing tensions in the oil-rich Gulf region and the impact from Japan’s nuclear crisis also affected the market sentiment.

Asian shares tumbled as Tokyo’s stock market benchmark plunged sharply during the week to its biggest decline since 2008 on panic selling amid worries of a possible ‘nuclear catastrophe’ that would further complicate and endanger the nation’s recovery from its worst-ever crisis.

Meanwhile, food inflation fell marginally to 9.42 per cent for the week ended March 5 from 9.52 per cent last week.

The NSE 50-share Nifty also ended lower by 71.75 points or 1.32 per cent to 5,373.70 from its last week-end level.

Among the major indices, the BSE-Auto fell by 3.22 per cent, the BSE-FMCG 2.75 per cent, the BSE-IT 2.44 per cent, the BSE-Realty 2.4 per cent, the BSE-Teck 1.86 per cent and BSE-CG by 1.49 per cent.

However, the BSE-CD firmed up by 1.04 per cent.

Major Sensex losers were Maruti Suzuki (7.53 per cent), HDFC (6 per cent), Hindalco (4.08 per cent), ONGC (4.07 per cent), Hero Honda (3.78 per cent), Infosys Tech (3.7 per cent), M&M (3.47 per cent), Tata Motors (3.41 per cent) and HUL (3.4 per cent).

However, Reliance Communications shot up by 8.51 per cent followed by Reliance Infrastructure 3.79 per cent, Tata Steel 2.46 per cent and Tata Power 2.07 per cent.

The total turnover on the BSE and NSE rose to Rs 15,911.80 crore and Rs 55,607.16 crore, respectively from the last week’s level of Rs 15,759.09 crore and Rs 51,696.04 crore.

Published on March 19, 2011
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