The BSE benchmark Sensex tumbled by yet another 388 points due to persistent selling pressure from investors to settle at a more than five-month low of 18,008.15, mainly led by FMCG, realty, IT, auto and banking counters.

Fears of another round of hike in key interest rates in the near future by the apex bank due to inflationary pressure and also rising global crude oil prices due to turmoil in Egypt, compelled the operators and investors to book profits even at the current low levels.

According to market participants, the rise in interest rates might affect the bottomline of the companies in the next quarter earnings. Hence, the rate sensitive realty, FMCG, banking and auto stocks suffered the most.

The statement by the Prime Minister, Dr Manmohan Singh, that inflation posed a “serious threat to the growth momentum”, also added fuel to the fire.

The Bombay Stock Exchange 30-share index touched a high of 18,542.20, but fell back sharply below 18K mark to a low of 17,926.98 before concluding the week at 18,008.15, the level not seen since August 31, 2010 when it ended at 17,971.12.

The Sensex showed a loss of 999.38 points or 5.26 per cent during the last two weeks.

The NSE 50-share Nifty also tumbled by 116.4 points or 2.11 per cent to finish below 5,400-mark at an over six-month low of 5,395.75. Previously, it had settled at 5,367.60 on July 30, 2010.

Upward revision of GDP growth to 8 per cent from the earlier estimate of 7.4 per cent for the financial year 2009-10 by the Government and also a healthy growth of 6.6 per cent in the output of the six core infrastructure industries in December 2010, indicating that the Indian economy is on a firm wicket failed to have major impact in share values.

News that the former Telecom Minister, Mr A. Raja, was arrested along with his two former associates in connection with the 2G spectrum scam filtered in, with the market wiping off a major part of the mid-week gains.

Meanwhile, food inflation rose to 17.05 per cent for the week ended January 22 and the Finance Minister, Mr Pranab Mukherjee, assured that steps will be taken to moderate prices.

Among the major indices, the BSE-FMCG fell by 6.43 per cent followed by the BSE-Realty 3.53 per cent, the BSE-IT 3.21 per cent, the BSE-Auto 3.06 per cent, the BSE-Teck 2.67 per cent the Bankex by 1.21 per cent.

Small-cap and Mid-cap indices also dropped by 2.52 per cent and 2.38 per cent, respectively.

However, the BSE-Metal index shot up by 108.86 points or 0.68 per cent and the BSE-Oil&Gas by 55.58 points or 0.59 per cent.

Total turnover on the BSE and NSE rose to Rs 17,842.71 crore and Rs 66,685.07 crore, respectively from the last week-end level of Rs 13,753.69 crore and Rs 56,112.45 crore, respectively.

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