Sensex ends below 9K level despite hints of stimulus package
In the week, the markets remained under constant pressure on fears of deeper impact of the global recession on Indian economy that anticipated earlier.business Updated: Dec 06, 2008 11:13 IST
The stock markets failed to sustain at higher levels with the benchmark Sensex ending the week below 9,000 despite indications of a strong fiscal and monetary policy stimulus to shore up the economy amid rate cuts by the central banks from major countries.
In the week, the markets remained under constant pressure on fears of deeper impact of the global recession on Indian economy that anticipated earlier.
The Bombay Stock Exchange 30-share barometer ended the week at 8,965.20, registering a fall of 127.52 points or 1.40 per cent from its previous weekend's close.
Sensex, however, pared losses on Thursday after hitting a low of 8,467.43 following a proposal by the government to boost the economy.
The broader 50-share Nifty of the National Stock Exchange also fell by 40.70 points or 1.48 per cent to close the week at 2,714.40 from its last weekend's close.
Global cues mainly influenced the local markets during the week while analysts said investors awaited a multi-crore stimulus package that the government is expected to unveil on December 6 to boost demand.
The anticipated fiscal measures are likely to cover a reduction in excise duties on commercial vehicles.
After reducing fuel prices on Friday, the government made it clear that it will unveil more measures at the weekend to stimulate growth while the Reserve Bank of India (RBI) will give a signal to banks to slash interest rates.
Commerce and Industry Minister Kamal Nath had said the package would be big enough to revive the industry's confidence.