The Hindu Business Line : Markets at 15-mth low in worst ever losing string

MUMBAI: The key indices Sensex and Nifty extended their weekly losses by three per cent and ended at more than 15-month low as bears tightened their vicious grip on stocks markets, taking advantage of lethal combination of adverse factors.

The 30-share index of the Bombay Stock Exchange ended the week at 13,454.00, a net fall of 348.22 points or 2.52 per cent from its last week's close. This makes the worst ever weekly losing streak as the BSE bellwether recorded a loss of 3,980.94 points or 22.83 per cent, the biggest fall in a single string of weekly losses.

The broader S&P CNX Nifty of the National Stock Exchange plunged by 120.65 points or 2.92 per cent to close the week at 4,016.00 from its previous weekend's close.

The Nifty too registered unprecedented fall of 1,141.70 points or 22.14 per cent in the string of seven weekly losses. Analysts attributed soaring global crude oil prices as the key factor for the on-going turmoil in Indian bourses.

High inflation was another factor that has been a cause of concern in the markets. There were worries among investors that this would lead the central bank to take further monetary measures.

The market sentiment also remained under pressure in view of fluid political situation at the Centre after Left, the key ally of the UPA government, hardened its stand on the Indo-US nuclear deal threatening to withdraw support from the government, if it moved ahead to operationalise the deal.

The global crude oil prices crossed $145 a barrel level for the first time during the week, raising possibility that it will have negative impact on the economic growth.

Sustained capital outflows witnessed:The markets also witnessed sustained capital outflows during the week as Foreign Institutional Investors (FIIs) sold shares worth Rs 733.35 crore (including provisional figure of July 4).They have pulled out ne arly Rs 26,571 crore so far, in the calendar year 2008.

The broad-based BSE-100 Index plunged by 252.55 points or 3.49 per cent to end the week at 6,976.29 points from its last week's close of 7,228.84 points. The BSE-200 Index and the Dollex 200 were quoted lower at 1,630.17 points and 629.20 points at the w eekend from previous week's close of 1,691.44 points and 657.73 points respectively.

The BSE-500 Index dipped by another 205.26 points or 3.82 per cent to settle the week at 5,161.93 points from preceding week's close of 5,367.19 points and the Dollex-30 ended sharply down at 2,560.73 points from 2,646.62 points at the last weekend.

Among other indices, the small-cap and the mid-cap indices also were the worst hit. The sectoral indices such as the BSE Metal index was the biggest loser with a fall of 9.44 per cent followed by the BSE Auto index (6.98 per cent), FMCG index (6.45 per c ent) and Realty index (5.02 per cent).

However, the BSE CG index gained 2.34 per cent and the BSE IT index by 1.59 per cent as their respective stocks scored impressive rises.

On the NSE, the S&P CNX Defty dropped by 121.70 points or 3.64 per cent to end the week at 3,224.90 points from its last week's close of 3,346.60 points and the CNX Nifty Junior concluded the week at sharply lower by 269.10 points or 4.15 per cent to 6,2 19.05 points from 6,488.15 last weekend. - PTI

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