Stock market this week: 5 reasons why Sensex logged biggest weekly fall

Here is looking at five main reason behind the slump in stock market this week.

Zee Media Bureau

Mumbai/New Delhi: The S&P BSE Sensex and CNX Nifty continued to decline for most of the week.

Stock maket logged biggest weekly fall this week weighed by both international and domestic reasons. Investors are also turning a bit more cautious at this juncture and paring long positions due to uncertainty in global markets and caution ahead of US Fed meet next week.

Here is looking at five main reason behind the slump in stock market.

1. The rising inflation weighed on market sentiment amidst hopes that the Reserve Bank of India (RBI) will make aggressive interest rate cuts next month.

2. The news of US unemployment data also sent discouraging vibes in the market.

3. India being an emerging market was frightened by the speculation that US Fed will lift rates from near-zero as early as summer.

4. The rupee's plunge to two-month lows too kept the market on a shaky ground.

5. Data on retail inflation, which showed a marginal increase, belied expectations of a rate cut next month, pulling down interest-sensitive sectors like banking, capital goods and automobile in particular.

With Agency Inputs