Weekly review: sensex dips by 891 pts

Weekly review: Sens*x dips by 891 pts

 Fears of possible recession in the US and acute debt problems in the euro zone gripped investors the world over, pulling down the BSE benchmark Sens*x by 891 points during the week under review to 14-month low of 17,305.87. In addition, the market sentiment remained weak on worries over likely slowdown in corporate earnings due to higher interest rates. Investors have been selling stocks since RBI hiked its key interest rates last week for the 11th time since March, 2010, to tame stubbornly high inflation. Worries over global economies going into the slow mode added to investor woes the world over. Asian stocks tumbled after a meltdown on Wall Street, triggered by concerns that the US economy might slip into recession. All the 13 sectoral indices recorded major losses with stocks of IT, metals, realty, financial, oil and gas, and capital goods sector leading the fall. The 30-share BSE index plummeted by 891.33 points, or 4.90 per cent, to finish the week at 17,305.87, the level last seen on June 10, last year. It is also the biggest weekly point-wise fall since the last week of October 2009, when it had tumbled by 914.53 points, or 5.44 per cent. Similarly, The broad-based NSE 50-issue Nifty plunged 270.75 points, or 4.94 per cent, to end at 5,211.25 – the level not seen since June 14, 2010, when it had closed at 5,197.70. Selling by foreign institutional investors also spooked the market. From the 30 share Sens*x pack, 28 stocks fell and only 2 rose during the week. Auto shares fell on Finance Minister Pranab Mukherjee's statement that the government may look at charging higher diesel prices for luxury cars and commercial users to ensure they don't benefit from a policy designed to help the needy. Among the major indices the BSE-Realty fell by 7.47 per cent, followed by the BSE-Metal (6.81 per cent), the BSE-IT (6.45 per cent), the BSE-Capital Goods (5.52 per cent), the BSE-Consumer Durable (5.36 per cent), the BSE-Auto (5.09 per cent) and the Bankex (4.94 per cent). Sterlite Industries slumped 11.35 per cent to Rs 141.75 and was the top loser from the Sens*x pack. The stock hit a 52-week low of Rs 138. Index heavyweight Reliance Industries (RIL) lost 4.36 per cent to Rs 791.65. The stock hit a 52-week low of Rs 778.55 on Friday. Other losers were Reliance Communications (9.30 per cent), DLF (8.94 per cent), M&M (8.80 per cent), Jaiprakash Associates (8.77 per cent), Jindal Steel (7.56 per cent),ICICI Bank (6.90 per cent), TCS (6.85 per cent), BHEL (6.65 per cent), Infosys (6.37 per cent), Tata Motors (6.11 per cent) and ITC (5.66 per cent). However, ONGC gained by 2.77 per cent and was the top gainer from the Sens*x pack, while Cipla added 0.17 per cent. The total turnover at BSE and NSE fell to Rs 13,786.23 cr and Rs 55,270.44 cr, respectively, from the last weekend's level Rs 14,429.50 cr and Rs 62,897.84 cr(6^th Aug, 2011)

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