Shares slide for 3rd straight week, Sensex sheds 375 points
Mumbai: Markets extended losses for the third consecutive week, tumbling another 375 points to end at 18,789 on persistent selling pressure as the rupee hit a new all-time low against the dollar before recovering some ground.
Foreign fund outflows from equities also affected the market sentiment. Foreign institutional Investors (FIIs) were net sellers of Rs 140.98 crore during the truncated week, including the provisional figure of August 8.
Sentiment was extremely weak on Dalal Street as the rupee plunged to a record low of 61.80 against the dollar in intra-day trade on August 6 before closing at 60.88, stoking fears of a higher current account gap as import costs surge.
The HSBC India Composite Output Index, which maps both services and manufacturing activity, fell to 48.4 in July, down from 50.9 in June, indicating an overall contraction.
The BSE Sensex resumed the week up at 19,178.06 and hovered in a wide range of 19,306.51 and 18,551.35 before settling at 18,789.34, showing a net loss of 374.68 points, or 1.96 percent. The 30-share index has lost 1,360.51 points, or 6.75 percent, in the last three weeks.
The NSE 50-share Nifty dropped 112.25 points, or 1.98 percent, to settle at 5,565.65. It has lost 463.55 points, or 7.69 percent, in the last three weeks.
The BSE and NSE were closed on Friday on the account of Eid-ul-Fitr.
An estimated Rs 5,600 crore payment crisis in National Spot Exchange Ltd has raised concerns that problems may spill over to stock markets, brokers said.