Sensex slides 914 points in a week on Q2 nos, weak cues

Written by fe Bureaus | Mumbai | Updated: Nov 1 2009, 04:50am hrs
The countrys equity indices ended the week on a negative note with second quarter results, intense selling from foreign institutional investors and weak cues from global markets failing to cheer them, dampening the excitement over the US coming out of deep recession. The 30-share Sensex of the Bombay Stock Exchange lost 914 points or 5.44% during the week.

On Friday, the Sensex was down by 156.44 points or 0.97% to close the day below the 16-k mark at 15,896.28 points. The broader S&P CNX Nifty of the National Stock Exchange (NSE) lost 38.85 points or 0.82% to end the day at 4,711.70 points.

Below-the-expected earnings by two top blue-chip companies, RIL and Bharti Airtel, sparked the selling onslaught. Reliance Industries, the countrys most valued company, lost 3.62% after reporting a fourth straight fall in its quarterly profits on lower refining margins. Bharti Airtel, Indias biggest telcom operator, reported a 13% rise in its second quarter profit, which fell below market expectations. Its shares closed sharply lower by 6.38%.

Sluggish debut of Indiabulls Powers initial public offering also had negative impact on the markets. The stocks ended the day at Rs 38.20, down by Rs 6.80 or 15.11% as against its issue price of Rs 45.

Tracking the global markets, benchmark indices opened the day in green, but soon turned negative for the entire trading session. This shows that the breadth of the market is weak. Apart from that, the second quarter results have been disappointing, which have also impacted the market, said Ambareesh Baliga, vice-president at Karvy Stock Broking.

Despite huge selling from FIIs in the week, they were net buyers on Friday at Rs 576.05 crore according to the provisional figure provided by the BSE. DIIs bought stocks worth Rs 592.93 crore.