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Jittery markets lose 6 pc in the week

business Updated: Nov 15, 2008 13:30 IST

PTI
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After a strong surge at the outset, bourses turned jittery and registered hefty losses over the week, pulled down by several negative factors as investors became cautious ahead of the crucial G-20 leaders' meeting at the weekend.

The market had made a roaring start lifting the benchmark Sensex by a whopping 572 points or 5.74 per cent on Monday as China's massive economic stimulus plan triggered a strong global stocks rally.

The upbeat mood, however, was short-lived as China's plan lost significance after investors shifted focus to emerging negative factors such as uncertainty over political front with assembly elections in a few states and also about a US treasury plan to buy stakes in ailing lenders.

In the week to November 15, the Bombay Stock Exchange 30-share barometer fluctuated in a range between 10,570.58 and 9,267.49 before ending the week at 9,385.42, a net fall of 578.87 points or 5.81 per cent from its last weekend's close.

Similarly, the National Stock Exchange 50-share Nifty tumbled by 162.65 points or 5.47 per cent to conclude the week at 2,810.35 from its last weekend's close.

The market seemed to be extremely cautious ahead of a meeting of G-20 leaders' on global financial and economic crisis on November 14 and 15 even as Germany fell into recession and the US unemployment claims hit a 25-year high with its imports suffering a record drop in September.

A fall in India's exports for the first time in the last five years and reduction in growth forecast amid lingering worries about a global recession caused concerns among investors.

Analysts pinned hopes on the two-day G-20 meeting, which is expected to provide direction for the global markets in the next week.

They said the local political situation ahead of state elections and uncertainty about a US Treasury plan to forgo buying bad mortgage-related investments to buy stakes in US lenders could play a spoilsport.

However, an increased possibility of further rate cuts after inflation fell to single digit of 8.98 per cent for the week ending November 1 can provide some support to the markets, they added.

Key stocks such as Jaiprakash Associates fell by 16.19 per cent, DLF by 14.24 per cent, Tata Motors by 13.81 per cent, ACC by 12.55 per cent, Mah & Mah by 11.16 per cent and Maruti Suzuki by 10.21 per cent.

The top Sensex heavyweight Reliance Ind tumbled by 5.69 per cent and ICICI Bank by 8.19 per cent.

The broad-based BSE-100 index plunged by 284.68 points or 5.58 per cent to end the week at 4,817.48 from its last weekend's close.

The BSE 200 index and the Dollex-200 were quoted further higher at 1,184.61 and 413.55 at the weekend compared with last weekend's close of 1,145.88 and 386.37 respectively.

On the NSE, the S&P CNX Defty slumped by 178.00 points or 8.24 per cent to 1,981.65 from previous weekend's close of 2,159.65 and the CNX Nifty Junior also dipped by 223.55 points or 4.85 per cent to end the week at 4,381.80 from preceding weekend's close of 4,605.35.

All Sectoral indices ended in the red by an average of 1.0 per cent to 14.00 per cent. The BSE-Realty plummeted by 331.29 points or 14.14 per cent, the BSE-CG by 684.09 points or 8.96 per cent and the BSE-Auto by 221.92 points or 8.34 per cent.