Sustained selling drive by the foreign institutional investors (FII) and an aggressive interest rate hike by the Reserve Bank (RBI) coupled with worries over corporate profit pulled down the BSE benchmark Sensex by another 617 points during the week.
Metal, Realty, Auto, Banking, FMCG, Consumer Durable and PSU sectors were the major losers from the Sensex pack. All indices finished with sharp to moderate losses in the range of 5.11-1.43%.
FII outflow in May 2011, totalled Rs 2,135 crore, till 4 May 2011. Mutual funds sold shares worth net Rs 78.40 crore in May 2011, till 5 May 2011.
The RBI raised its key short term lending rates by higher-than-expected 50 basis points (bps) and also lowered the baseline economic growth forecast for the current year.
The BSE Sensex declined by 617.15 points, or 3.23% to end the week 18,518.81. The S&P CNX Nifty also dropped by 198.05 points, or 3.44% to 5,551.45.
The BSE Mid-Cap index declined by 3.25% and the BSE Small-Cap index moved down by 4.28%.
The market recovered marginally at the fag-end of the week in view of sharp slide in crude oil prices, which eased macroeconomic worries and bargain hunting emerged after the recent market decline.