Sensex, Nifty fall to 2-week lows on Iraq crisis
Mumbai: Benchmarks Sensex and Nifty on Friday extended losses for the third day and ended at two-week lows dragged down by M&M, Tata Power and ICICI Bank shares as caution prevailed over the growing unrest in Iraq choking oil supplies and a weak monsoon stunting economic revival.
The S&P BSE benchmark Sensex slipped another 96.29 points, or 0.38 percent, to end at 25,105.51 and the NSE 50-share Nifty moved down by 29.25 points, or 0.39 percent, to finish at 7,511.45, its lowest close since June 5.
Capital outflows also affected the market sentiment. Foreign Portfolio Investors (FPIs) sold shares worth a net Rs 420.51 crore on Thursday as per provisional data.
Shares of public sector oil marketing companies (PSU OMCs) were mostly lower after the main US oil contract, West Texas Intermediate for July, fell 43 cents to USD 106 a barrel while Brent crude for August eased to trade near USD 115 mark.
Besides, tepid monsoon forecast and slowdown in buying by foreign funds, who have been major buyers on the domestic bourses, have dampened sentiments, brokers said.
Automakers like M&M and Hero MotoCorp saw selling on fears that a weak Monsoon will hit vehicle sales.
The southwest monsoon has further advanced into remaining part of Karnataka and Telangana, some parts of Madhya Maharashtra, Vidarbha and east Madhya Pradesh and most parts of Marathawada.
The 30-share index Sensex resumed higher at 25,237.54 and hovered in a range of 25,276.31 and 25,056.18 before ending at 25,105.51, showing a loss of 96.29 points or 0.38 percent. It has now dropped by 415.68 points or 1.63 percent in three days. At today's value this is the weakest close for Sensex since 25,019.51 on June 5.
"Markets were lackluster over the week. Sharp rise in crude prices because of Iraq issue dampened sentiments ....Going ahead, we see the monsoon progress and the budget to be the two most important triggers for the markets," said Dipen Shah, Head- Private Client Group Research, Kotak Securities.