Stocks: The BSE benchmark Sensex has extended its losing streak for the third straight trading week, losing over 820 points as selling pressure triggered by poor second quarter earnings and a weak trend in global markets over the euro zone crisis battered stocks.
Sustained capital outflows from foreign funds also weighed on the market sentiment during the trading week to November 18.
Dealers said the selling pressure was felt mainly in realty, capital goods, power, metal, refinery, PSU and auto stocks.
Even though cabinet has approved foreign direct investment of up to 26% in the pension sector, the impact of the announcement on the market was mild.
The BSE Sensex slumped by 821.31 points or 4.78%, to 16,371.51 during the week ended November 18. The Sensex has lost nearly 1,433 points, or 8.05%, during the last three weeks.
The 50-share S&P CNX Nifty index also lost 263.05 points, or 5.09%, to 4,905.80 during the trading week.
In a similar fashion, the BSE mid-cap index fell by 7.24%, while the BSE small-cap index shed 8.61%.
Among the 30 Sensex shares, 27 stocks declined and only three gained.
Infrastructure company Jaiprakash Associates was the biggest loser in the Sensex pack last week. The stock tumbled by 18.16% due to its weak Q2 operating performance.
Realty major DLF also slipped by 10.51% to Rs 204.35 on weak Q2 results.
Shares of India's largest steel-maker by sales, Tata Steel, fell by 8.72% to Rs 392.50 after the company's consolidated net profit fell 89.26%. Tata Steel said its performance was adversely impacted by higher global raw material costs and lower average selling prices realised by Tata Steel Europe.
Index heavyweight Reliance Industries (RIL) also fell by 8.58% to Rs 808.05.
Drug-maker Cipla was the top Sensex gainer. The stock jumped by 9.42% during the trading week ended November 18 to Rs 313.75 on good Q2 results.
Depreciation of the rupee against the American currency also affected the market sentiment.
Meanwhile, food inflation eased to 10.63% for the week ended November 5 from 11.81% in the previous week, even as prices of agricultural items, barring onions and wheat, continued to rise on an annual basis.
Among the major sectoral indices, the BSE-Realty index plummeted by 11.19% during the week, while the BSE-Consumer Goods index plunged by 9.99%, the BSE-Power index dropped by by 9.59%, the BSE-Metal index declined by 7.43%, the BSE-Oil&Gas index fell by 6.86%, the BSE-PSU index slipped by 6.81%, the BSE-Auto index lost 6.56% and the BSE-Bankex fell by 4.92%.
The total turnover on the BSE and NSE rose to Rs 11,653.90 crore and Rs 50,416.20 crore, respectively, during the week under review from Rs 7,183.23 crore and Rs 30,609.46 crore in the previous week.
Forex: The Indian rupee ended the trading week to November 18 at a 32-month low of Rs 51.34/35 per US dollar due to persisting demand for the American currency from banks and importers.
The rupee resumed slightly higher at Rs 49.94/95 per dollar on the Interbank Foreign Exchange, as against last week's close of Rs 50.12/13 per dollar, but declined at the fag-end of the week to a 32-month low of 51.41 per dollar before ending the week at Rs 51.34/35 per dollar.
The rupee had last closed below this level on March 17, 2009, when it was valued at Rs 51.49/51 per dollar.
The domestic currency moved in a range between Rs 49.90 and Rs 51.41 per dollar during the week.
Sustained dollar demand from banks and importers in view of dollar firmness in overseas markets amid weak domestic equity markets mainly affected the rupee value against the dollar, a forex dealer said.
India Forex Advisor CEO Abhishek Goenka said equity markets showing a downward trend due to the Europe debt crisis amid increasing pressure on sovereign bond yields intensified investors' concerns. The pressure on the rupee will continue largely due to internal issues faced by the economy, they said, adding that the trade deficit is also widening.
FIIs were net sellers of Indian equities worth Rs 1,000 crore during the week under review, which helped the dollar trade stronger against the rupee.
Most major currencies in international markets were trading weak against the greenback, which led to depreciation of the rupee to its lowest level in 32 months.
Asian stocks fell, headed for a third week of losses, and oil declined as concern grew that Europe's debt crisis is spreading amid reports that China's banking regulator has warned of rising bad loans.
The dollar index, which tracks its performance against a basket of major currencies, was bullish throughout the week, with the euro, GBP, yen and other currencies trading weak against the greenback.
The Reserve Bank of India (RBI) has fixed the reference rate for US dollar and euro at Rs 51.3530 and Rs 69.2589, as against Rs 50.2795 and Rs 68.4460, respectively, last weekend.
The rupee premium on the forward dollar declined further on sustained receivings by exporters. The benchmark six-month forward dollar payable in April finished the week lower at 91-93 paise, as against last weekend's level of 100-102 paise, and far-forward contracts maturing in October also ended marginally lower at 157-159 paise in comparison to 159-161 paise last weekend.
The rupee dropped further against the pound sterling to conclude at Rs 81.32/34, down from last weekend's close of Rs 79.84/86, and also declined sharply to Rs 69.45/47 per euro from Rs 68.39/41 last weekend.
It also tumbled to Rs 66.91/93 per 100 Japanese yen, as against the preceding weekend's close of Rs 64.77/79.