Stock markets continued to fall for the second consecutive week shedding another 208 points due to a sharp fall in Sensex-major Infosys and sustained selling by foreign institutional investors.
Infosys crashed nearly 20% due to disappointing Q4 results and a weak revenue forecast for this fiscal.
Sustained selling by FIIs, the main market mover, is one of the main reasons behind the recent downslide. FIIs sold shares worth Rs. 587.19 crore during the week, including the provisional figure of April 12.
Hit by growth concerns fanned by weak Infosys guidance, other IT companies too suffered losses. As a result S&P BSE-IT index dropped sharply by 10.26% and was the top loser from the sectoral indices.
Infosys, the country's second largest software exporter, forecast a revenue growth of 6-10% for this fiscal, lower than IT industry body Nasscom's estimate.
The decline was in contrast to fall in retail inflation in March and factory output growth of 0.6% in February.
The BSE barometer Sensex resumed the week slightly higher at 18,455.80 and moved up further to 18,599.14 on select buying. However, it declined immediately to a seven-month low to 18,173.31 before ending the week at 18,242.56, showing a fall of 207.67 points or 1.13%.
It has lost 593.21 points or 3.15% in two weeks. Previously, it had settled at 18,021.16 on September 13, 2012. The NSE 50-share Nifty also dropped by 24.70 points or 0.44% to 5,528.55. It had also lost 154.00 points or 2.17% in the last two weeks.
Country's third largest software services exporter Wipro was at the receiving end with a fall of 15.71% and was the second top loser from the Sensex pack after the company hived-off its three non-IT business divisions into a privately-held company.
15 scrips out of 30-share Sensex pack ended higher while 14 finished lower. Tata Power ruled steady.
Other major losers from the Sensex pack were Tata Steel (2.97%), Jindal Steel (2.09%), Coal India (2.77%), Hero Motoco (1.89%), ONGC (1.80%) and M&M (1.67%).
However, Tata Motors rose by 7.87% followed by Icici Bank (4.71%), Cipla 4.71 (per cent), HDFC Bank 3.66 (per cent), Hindlaco Ind (1.95%), SBI (1.25%), Sun Pharma (1.23%), HUL (1.46%) and Bajaj Auto (1.39%).
Among the major indices, other then S&P BSE-IT, the S&P BSE-Teck dropped by 7.68% followed by S&P BSE-Metal (1.21%), S&P BSE-PSU (0.83%).
However, S&P BSE-Bankex rose by 2.61%, S&P BSE-Auto (1.83%), S&P BSE-Realty 1.77% and S&P BSE-FMCG (1.20%).
The total turnover at BSE and NSE was Rs. 8,560.94 crore and Rs. 47,705.31 crore during the week as against Rs. 8,699.64 crore and Rs. 45,345.87 crore last week.
The Indian rupee recovered marginally by 29 paise to close at 54.52 against the Greenback during the shortened week under review following fresh dollar selling by exporters amid sustained capital outflows.
However, weakness in domestic equities restricted the rupee rise to some extent, a forex dealer said.
The Forex market was closed on April 11 on account of "Gudi Padwa".
At the Interbank Foreign Exchange (Forex) market, the local unit commenced almost stable at 54.80 a dollar from last weekend's close of 54.81 and immediately touched a low of 54.84 on initial dollar demand from importers and hesitancy in domestic equities.
It later bounced back to a high of 54.34 before ending the week at 54.52, showing a rise of 29 paise or 0.53%. Last week, it had tumbled by 52 paise or 0.96%.
The Indian benchmark Sensex closed down by nearly 208 points or 1.13%, extending losses for the second week while FIIs pulled out Rs. 587.19 crore in the week, including provisional data of April 12.
Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said, "This week Rupee appreciated against dollar. To start the week the dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, traded weak at 82.33 as the euro advanced against the dollar, supporting the rupee." Meanwhile, retail inflation declined to 10.39% in March from 10.91% in February. Factory output, as measured by the Index of Industrial Production (IIP) has slipped to 0.6% in February this year as against 4.3% in same month last year.
The rupee premium for the forward dollar finished sharply lower on fresh receiving by exporters.
The rupee premium for the benchmark six-month forward dollar payable in September closed down at 177-1/2-179 paise from last weekend's level of 192-194 paise and far-forward contracts maturing in March also ended lower at 349-350-1/2 paise as against 366-368 paise.
The RBI fixed the reference rate for the US dollar at 54.4425 and for euro at 71.3310 as against the last weekend's level of 54.8803 and 70.9044.
The rupee remained weak against the pound sterling to 83.82 from preceding weekend's level of 83.43 and also dropped further against the euro to end at 71.18 from previous weekend's close of 70.84.
However, it strengthened further against the Japanese yen to settle at 54.94 per 100 yen from last weekend's level of 57.00. Gold suffering a biggest ever single-day loss of Rs. 1,250 to hit one-year low of Rs. 28,350 per 10 gram was the feature of trading in the national capital during the past week on frantic selling by stockists driven by steep fall in global and domestic futures markets.
The rolling down gold recorded a hefty loss of Rs. 1,680 to Rs. 28,350 per 10 gram during the weak, its lowest level since April 7 as the metal recorded a steep fall in overseas markets on investors shifting their funds to forex and equities on signs of global economic recovery.
While gold in New York, which control price trend in domestic markets, tumbled below USD 1,500 to USD 1,477 an ounce for the first time in since July 2011.
Silver also tumbled on poor off take by industrial units and coin makers, beside weak global trend.
Despite ongoing 'Navratras' festival an auspicious week in Hindu mythology for buying precious metals, retail customers remained on sidelines on expectations of more corrections in prices, further dampened the sentiment.
Gold hitting nearly 13-month lows in futures trade on the Multi Commodity Exchange on speculators off-loading their positions was another negative factor for the market.
In the national capital, gold of 99.9 and 99.5% purity commenced lower at Rs. 29,990 and Rs. 29,790 per 10 grams and fell further to settled at Rs. 28,350 and Rs. 28,150 per 10 grams, respectively, showing a hefty fall of Rs. 1,680 each from the precious week's close. Sovereign followed suit and plunged by Rs. 300 to Rs. 24,800 per piece of eight gram.
On similar lines, silver ready dropped by Rs. 2,300 to Rs. 50,100 per kg and weekly-based delivery by Rs. 2760 to Rs. 48,780 per kg during the week. Silver coins too plunged by Rs. 3000 to Rs. 77,000 for buying and Rs. 78,000 for selling of 100 pieces.