Sensex, Nifty show weekly loss of more than 2%

Mumbai: Both the indices, the BSE benchmark Sensex and NSE Nifty dropped by more than two percent in spite of fag-end recovery in the domestic equity market following Economic Survey which came days before the Union Budget projected the economy to grow at 7-7.75 percent in 2016-17.

The Survey estimated growth at 7-7.75 percent for the next fiscal while pressing for more reforms, subsidy cuts and sticking to the fiscal consolidation plan.

"Optimistic investors were seen widening their bets on the last day today ahead of the Budget on Monday, encouraged by the Economic Survey," a Delhi-based stock broker Manoj Choraria said.

Asia rallied on the last day of the week after China's central bank chief said Beijing still has enough monetary firepower to keep the world's second-largest economy on track as G20 ministers gathered in Shanghai.

US stocks closed slightly lower yesterday, but logged a second straight weekly gain as oil prices stabilized.

The rail budget failed to calm the nerves of jittery investors amid a continuing sell-off and as the Sensex dropped by 112.93 points on that day even as Railway Minister Suresh Prabhu proposed increasing capital outlay for the Railways, the world's fourth-largest rail network, by 21 percent to Rs 1.21 lakh crore.

The Indian rupee hitting a fresh 30-month low to 68.79 weighed on the sentiment," said Hem Securities Director Gaurav Jain. Persistent foreign capital outflows also affected the market sentiment.

The Sensex dropped by 554.85 points or 2.34 percent to end the week at 23,154.30 after moving in a range of 23,855.04 and 22,948.10.

The NSE 50-share index also tumbled by 181.00 points or 2.51 percent to 7,029.75.