Stocks: Registering its second consecutive decline, the BSE benchmark Sensex shed 2.11% during the truncated trading week ended November 11 amid heavy selling pressure in realty, banking, metal, capital goods and PSU sectors.
The market sentiment was bearish in view of lower IIP data and unexpectedly poor quarterly results from some companies.
The BSE and NSE were closed on November 7 on account of Eid-ul-Azha and on November 10 for Gurunanak Jayanti.
The BSE Sensex fell by 369.79 points, or 2.11%, to end at 17,192.82 during the trading week ended November 11. The 50-share S&P CNX Nifty also declined by 115.35 points, or 2.18%, to 5,168.85.
Notably, the BSE mid-cap and small-cap indices underperformed in comparison to the broader market during the week under review. While the BSE Mid-Cap index declined by 2.16%, the BSE small-cap index slipped by 2.78%.
The maximum fall in the key benchmark indices occurred at the fag-end of the week, following the release of data that showed industrial production rose by a dismal 1.9% in September, 2011, the lowest rate of expansion in 2 years, while food inflation remained at elevated levels in late October, 2011.
Banking stocks fell as the 10-year benchmark bond yield approached 9% during the week. Bond yields and bond prices are inversely related. Lower bond prices may result in depreciation in the valuation of banks' portfolios of government securities.
State Bank Of India was the big loser during the week, losing 8.48% following the announcement of an increase in the bank's bad loans in the second quarter ended September, 2011.
"The banking sector disturbed the overall sentiment for the week. SBI reported higher-than-expected NPAs and Moody's downgrade of the Indian banking system to 'negative' from 'stable' was enough to create capitulation in stocks," inventure growth and securities head of research Milan Bavishi said.
Realty major DLF declined by 7.48% to Rs 228.35 during the week. The company announced on Thursday that its consolidated net profit fell 10.98% in Q2.
India's largest steel-maker by sales, Tata Steel, also tumbled by 8.10% as the company announced its consolidated net profit fell by 89.26% to Rs 212.43 crore in Q2, FY'12, in comparison to the corresponding period of the previous fiscal.
FMCG giant Hindustan Unilever (HUL) was the top Sensex gainer of the week. The stock rose by 4.57% to Rs 396.15 on news that HUL's net profit rose by 21.69% in the second quarter.
Among the major indices, the BSE-Realty index dipped by 5.98%, the Bankex by 5.44%, the BSE-Metal index by 4.84%, the BSE-Capital Goods index by 3.56%, the BSE-PSU index by 3.34% and the BSE-Power index by 2.37% during the trading week ended November 11.
The total turnover of the BSE and NSE fell to Rs 7,183.23 crore and Rs 30,609.46 crore, respectively, from the level of Rs 11,240.12 crore and Rs 49,533.34 crore witnessed in the previous week.