Markets slip from record-high as surging crude plays dampener
Mumbai: The benchmark BSE Sensex was hit by a sudden spike in crude oil prices despite the country reporting positive macro economic indicators during the week.
The week saw the markets registering couple of record-highs boosted by the government's business-friendly economic agenda as well as optimism over important macro data of industrial production (IIP) and retail inflation amid increased buying by foreign funds (FIIs).
Barring IT, healthcare and tech which attracted good buying interest, other sectoral indices witnessed selling with realty, PSU, oil & gas, metal, power and banking witnessing the downslide.
The BSE-Midcap and BSE-Smallcap indices also closed down by 1.79-1.02 percent.
The Sensex logged all-time intra-day high of 25,725.12 during the week and a low of 25,171.61 before concluding the week at 25,228.17, showing a weekly fall of 0.66 percent or 168.29 points.
Similarly, the 50-issue CNX Nifty of the NSE also zoomed to a new intra-day peak of 7,700.05 before ending at 7,542.10, a loss of 41.30 points or 0.54 percent.
The escalating violence in Iraq also triggered a sell-off on last day of the week.
Meanwhile, exports grew to a six-month high of 12.40 percent in May this year against the same period last year while imports contracted 11.41 percent in May.
Trade deficit declined by 42.01 percent in May against the same month of 2013-14.
The growth in IIP for April 2014 stood at 3.4 percent against negative 0.5 percent in March 2014.
Improvement in IIP data and recent pick-up in exports suggests early signs of improvement in economy.
The retail inflation for May 2014 declined to 8.28 percent against 8.59 percent in April 2014, inching closer to RBI's target of 8 per cent by January 2015.
Foreign institutional investors (FIIs) bought shares worth Rs 4,897.57 crore during the week, as per SEBI's data, including the provisional figure of June 13.
20 scrips out of the 30-share Sensex pack ended lower while others finished higher.
Major losers were BHEL (9.50 percent), ONGC (8.95 percent), Axis Bank (7.85 percent), NTPC (7.22 percent), Tata Power (6.50 percent), Bharti Airtel (6.41 percent), Tata Steel (6.16 percent), SSLT (5.55 percent), SBI (4.60 percent), Hindalco (4.03 percent), Icici Bank (3.52 percent), Hero Motocorp (3.50 percent) and RIL (3.38 percent).
On the other hand, TCS rose 6.27 percent, followed by Infosys (6.06 percent), Bajaj Auto (5.94 percent), Sun Pharma (4.76 percent), Cipla (4.69 percent), Wipro (4.21 percent), Dr Reddy's Lab (4.13 percent), HDFC (4.11 per cent) and HDFC Bank (2.53 percent).
Among the S&P BSE sectoral indices, Realty dropped 6.26 percent, followed by Oil & Gas (5.22 percent), Metal (4.60 percent), Power (4.54 percent) and Bankex (2.69 percent) while IT rose 5.89 percent, HC (4.13 percent) and Teck (3.59 percent).
Total market turnover on the BSE and the NSE rose to Rs 23,388.26 crore and Rs 1,15,538.14 crore, respectively from the last weekend's level of Rs 22,255.15 crore and Rs 1,12,965.06 crore, respectively.