Indices end week in red as blue chips post poor Q2 numbers
Indian benchmark indices, which touched one-month highs on Wednesday, started giving up the gains on Thursday and deepened the correction on Friday after the September quarter numbers of heavyweights, such as ONGC, SBI and Tata Steel, disappointed the Street.
The 30-share Sensex lost 0.86%, or 162.58 points, while the broader Nifty gave away 0.9%, or 52.5 points, to close the week at 18,683.68 and 5,686.25, respectively.
During the week, both indices shed 0.2%. Market experts believe that after tracking the US presidential election results, the traders have shifted their focus to domestic issues, in turn, capping the market gains.
“Wednesday’s rally was in conjunction with the gains made by other Asian markets. However, US markets have declined after Obama’s re-election as global investors are now studying the likely outcomes of the US fiscal cliff,” said an analyst.
According to UBS global equity strategist Christopher Ferraron, equity markets may not be able to make strong gains unless investors see a solution to the US fiscal cliff that is scheduled on January 1, 2013. “If no solution is negotiated or the deadline is not postponed, the risk aversion may escalate, which could affect the Asian equities negatively,” he said.
After opening flat, the benchmark indices begun their descent in early trading hours as stocks like ONGC and SBI started to weigh it down. ONGC's September
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