Sensex ends lower for second consecutive week, drops 584 points
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Sensex ends lower for second consecutive week, drops 584 points

Last Updated: Saturday, August 03, 2013, 17:01
 
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Sensex ends lower for second consecutive week, drops 584 points
Mumbai: Markets ended in red for the 2nd consecutive week due to persistent selling pressure as RBI kept its lending rates steady to curb the fall in currency value rather than pushing for industrial growth.

RBI Governor D Subbarao in Q1 monetary policy review on Tuesday expectedly kept key policy rates unchanged, but markets were jittery as the central bank lowered the economic growth (GDP) projection for the current fiscal to 5.5 percent from 5.7 percent.

Selling pressure continued even after the government announced plans for further liberalisation.

Finance Minister P Chidambaram said the FDI policy would be liberalised further and public sector undertakings would be encouraged to raise funds from overseas.

RBI's lower GDP forecast and rupee again falling below the sensitive 61-mark spooked stocks markets with S&P BSE benchmark Sensex plunging by 584 points or 2.96 percent to nearly one-month low of 19,164.02.

Sensex resumed lower at 19,714.42 and dropped further to a low of 19,078.72 before concluding at 19,164.02. It has dropped by 985.83 points or 4.89 per cent in two weeks.

The NSE 50-share Nifty also dropped by 208.30 points or 3.54 percent to 5,677.90. It has also tumbled by 351.30 points or 5.83 percent in last two weeks.

"The fall in the markets during the week has come about despite good gains in global markets, indicating the pre-dominance of domestic concerns," said Dipen Shah, Head of Private Client Group Research at Kotak Securities.

To curb forex speculation, the RBI and market regulator Sebi had taken several steps, including restrictions on the futures market by way of raising margins and limiting positions that market participants can take.

Meanwhile, Foreign Institutional Investors (FIIs) were the net buyers of Rs 760.09 crore during the week including the provisional figure of August 2.

24 stocks out of the 30-share Sensex pack finished lower while six others finished higher.

Major losers were Coal India (9.86 percent), ITC (9.62 percent), ONGC (8.81 percent), Hindalco Ind (8.10 percent), NTPC (8.00 percent), Tata Steel (7.58 percent), HUL (7.21 percent), BHEL (5.92 percent), Bajaj Auto (5.86 percent), Sterlite Ind (5.61 percent), Tata Power (5.17 percent) and RIL (3.65 percent).

However, Wipro rose by 14.62 percent followed by TCS (4.11 percent), Infosys (3.13 percent) and Bharti Airtel (1.98 percent).

Among the sectoral indices S&P BSE-Realty fell sharply by 14.63 percent followed by S&P BSE-IPO 12.99 percent, S&P BSE-Power 10.49 percent, S&P BSE-Metal 10.00 percent, S&P BSE-PSU 9.45 percent, S&P BSE-FMCG 8.20 percent, S&P BSE-Oil&Gas 5.67 percent, S&P BSE-Bankex 4.43 percent and S&P BSE-CG 4.31 percent.

However, S&P BSE-IT rose by 3.78 percent and S&P BSE-Teck by 2.43 percent.

Small-cap and Mid-cap shares also fell due to heavy selling pressure from retail investors and its indices ended lower by 6.13 percent and 6.07 percent, respectively.

The total turnover at BSE and NSE rose to Rs 9,985.16 crore and 58,654.85 crore, respectively from the last weekend's level of Rs 9,390.41 crore and Rs 55,989.13 crore.

PTI



First Published: Saturday, August 03, 2013, 16:53


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