Market review: Sensex fails to maintain mid-week gains, loses 75 points

Dec 22 2012, 15:22 IST
Comments 0
Sensex failed to hold on to mid-week gains and ended the week lower by 75 points at 19,242.00. (Reuters) Sensex failed to hold on to mid-week gains and ended the week lower by 75 points at 19,242.00. (Reuters)
SummarySensex failed to hold on to mid-week gains and ended the week lower by 75 points at 19,242.00.

Stocks: The BSE benchmark Sensex failed to hold on to mid- week gains and ended the week lower by 75 points at 19,242.00 due to tail-end selling from operators triggered by worries over the US budget issue.

With this the 30-share index extended its losses for the second straight week.

Investor sentiment took a further hit after CBI on Friday filed a chargesheet in connection with alleged irregularities in spectrum allocation during the BJP-led NDA

Government. The Central agency named three telecom players, including Bharti Airtel, as accused in the chargesheet.

A steep fall in overseas stock markets on worries over US budget deficit issue pulled down domestic shares.

"Global cues were not supportive as US fiscal cliff issues continued to overshadow other economic news," Amar Ambani, Head of Research at IIFL, said.

Trading sentiment was also dampened after Government lowered the growth projection for the current financial year to 5.7-5.9 per cent from 7.6 per cent estimated earlier.

The BSE benchmark resumed lower at 19,290.92, but recovered afterwards to hit a high of 19,520.51 on expectation of easing of monetary policy by Reserve Bank of India (RBI) next month. On its policy review on Tuesday, the Central bank kept key interest rates unchanged, but indicated that they may be cut in the next review.

However, the Sensex fell on fag-end selling due to weakness in global stocks on concerns over fiscal cliff in the world's largest economy. It settled at 19,242.00, a loss of 75.25 points, or 0.39 per cent, over the last weekend close.

The NSE 50-share Nifty dropped 31.90 points, or 0.54 per cent, to end the week at 5,847.70.

Good buying in metal stocks following indication of economic recovery in China, the world's largest consumer of copper and aluminium, boosted the market sentiment.

Pharma, IT and auto shares also were in demand.

Foreign Institutional Investors (FIIs) continued their uying spree during week, investing a net Rs 4,590.94 crore, including the provisional figure of December 21.

According to analysts, the next week will witness volatility in the markets as traders generally prefer to roll over positions ahead of the expiry of derivatives segment.

The December series will end on Thursday. The BSE and NSE will remain shut on December 25 on account of Christmas.

Major losers from the Sensex pack were L&T (3.01 per cent), HDFC (2.81 per cent), ITC (2.69 per cent), HDFC Bank (1.80 per cent), Bharti Airtel (1.54 per cent), RIL (1.94

Single Page Format
Ads by Google
Reader´s Comments
| Post a Comment
Please Wait while comments are loading...