Stocks: The BSE Sensex ended in the red for the second consecutive week, slipping 4.45% during the week, due to all-round selling pressure triggered by negative industrial growth in October.
The rate pause by the Reserve Bank Of India (RBI) policy review failed to enthuse the market, which also was expecting a cut in CRR to infuse liquidity in the system.
Industrial output as measured by IIP registered a negative growth of 5.1% in October - lowest in over two years - due to rising interest rates, high prices and global uncertainties. Factory output had grown by 11.3% in October last year.
The BSE Sensex fell 722.11 points or 4.45% to more that 2-year closing low at 15,491.35 as against the previous weekend's level of 16,213.46. It has lost 1,355.48 points or 8.05% in the last two weeks.
The 50-share S&P CNX Nifty fell by 215.10 points or 4.42% to finish at 4,651.60.
The BSE Mid-Cap index fell by 6.11% while the BSE Small-Cap index fell 6.03%.
RBI left its main lending rate unchanged in order to support faltering economic growth as inflation shows signs of cooling. It also refrained from cutting the cash reserve ratio (CRR) from 6%, despite tight liquidity in the system.
Persistent selling pressure from foreign funds also affected the market sentiment.
Index heavyweight Reliance Industries (RIL) fell 4.30% to Rs 723.
Engineering and construction major L&T slumped 12.32% to Rs 1,075.80. Shares in capital goods sector slumped after the recent data showed that capital goods production shrank 25.5% in October 2011 from a year earlier.
India's second largest private sector lender HDFC Bank declined by 6.49% to Rs 415.95. India's largest private sector bank ICICI fell 7.59% to Rs 676.05. The stock hit a 52-week low of Rs 667 on Friday.
India's largest, state owned lender SBI fell 9.84% to Rs 1,680.45.
Other losers from the Sensex pack were Sterlite (11.83%), DLF (8.97%), Tata Steel (8.36%), Tata Power (7.35%), Jaiprakash (6.79%), M&M (6.32%) and Bharti Airtel (6.24%).
However, HUL was up 1.70% and Cipla (1.81%).
Among the major indices, the BSE-Capital Goods dropped by 10.30%, Consumer Durables by 8.38%, Realty by 8.22%, Bankex by 7.25% and Metals by 7.08%.
Total turnover at BSE and NSE rose to Rs 10,050.38 crore and Rs 50,279.35 crore respectively as against the previous weekend's level of Rs 8,808.57 crore and Rs 38,674.95 crore.
Forex: The Indian rupee tumbled to a historic low of 54.32 against the American currency during the past week on persistent dollar demand from banks and importers though it rebounded sharply to end at 52.70/71 after the intervention of the Reserve Bank Of India (RBI) to ease volatility in the forex market.
The rupee resumed lower at 52.09/10 per dollar at the Interbank Foreign Exchange (Forex) market as against the last weekend's level of 52.03/04 per dollar and dropped further to all-time low of 54.32 per dollar.
However, it recovered sharply due to fresh selling of dollars after the Reserve Bank of India imposed restrictions on forward trading and banks' exposure to the forex market to check the slide of the domestic currency.
It moved in a wide range of 52.09 per dollar and 54.32 per dollar during the week before ending at 52.70/71 per dollar, still showing a loss of 67 paise or 1.29% from its last weekend's level.
Concerned over economic slowdown, the Reserve Bank kept interest rates unchanged and indicated that it could cut key policy rates from now onwards to arrest falling growth while keeping a close vigil on inflation.
Meanwhile, the Indian benchmark Sensex dropped by 722.11 points or 4.45 per% to 15,491.35 from its previous weekend's level.
Food inflation fell to a nearly four-year low of 4.35% during the week ended December 3 as against 6.60% previously.
Pramit Brahmbhatt, CEO, Alpari Financial Services (India) Pvt. Ltd said this week rupee traded very volatile. In the first half, rupee hit new all time low, taking cues from global markets where Euro & GBP traded weak against the greenback. During the week, it hit a low of 54.32, it also touched a high of 52.09.
In the second half of the week, it bounced back and appreciated by over 2%, also recording the biggest single-day rise in more than two years after the intervention of central bank.
The US dollar index which measures the greenback's performance against six currencies traded bullishly against most major rivals.
RBI fixed the reference rate for US dollar and Euro at Rs 52.8140 and Rs 68.8091 from Rs 52.2285 and Rs 69.6008 respectively, last weekend.
The rupee premium for the forward dollar remained firm on sustained demand pressure from banks and corporates. The benchmark six-month forward dollar payable in May ended the week up at 147-150 paise from 135-138 paise. Far-forward contracts maturing in November also settled higher at 237-241 paise from last weekend's level of 222-225 paise.
The rupee eased further against the Pound Sterling to end the week at Rs 81.86/88 from last weekend's close of Rs 81.84/86 and also declined further against the Japanese yen to Rs 67.64/66 per 100 yen from preceding weekend's level of Rs 67.00/02.
It, however, recovered sharply to end the week at Rs 68.64/66 per euro from previous weekend's close of Rs 69.80/82.